Manitoba dips into rainy day fund to support COVID 19 grants for businesses

The Manitoba government is taking money from its rainy-day fund to mitigate impacts of COVID-19 on local businesses.

Finance Minister Scott Fielding says $215 million will be withdrawn from the fund, leaving the account's balance at $585 million.

The Progressive Conservative government has added hundreds of millions to the fund since 2016.

The government previously wavered on whether to use the fund during the pandemic and said keeping the money where it was would help Manitoba borrow more easily.

Fielding says dipping into it now will keep the province from borrowing from the capital market and save taxpayers on interest costs.

The money is to be used to cover the cost of a grant program that provides direct financial support to businesses.