The new provincial budget introduced by Finance Minster Rosann Wowchuk is not particularly shocking. Like the federal government and virtually every other province, Manitoba is going to be running a deficit until 2014. Several governments, including the feds, will be running deficits for longer than that, so overall we're doing pretty well, and all efforts are being made to maintain front line services. To do this the government will need to amend Manitoba's balanced budget legislation to make it more flexible. The provincial Tories and their ilk will whine, but considering that the federal stimulus would not have been possible if the feds (you know, the folks Hugh McFadyen would presumably like to emulate) were constrained by similar legislation, I don't think they don't have a whole lot to complain about.
Interestingly, U of M economist Fletcher Baragar thinks that the balanced budget legislation should be scrapped entirely. I'm inclined to agree, though it might be hard to sell the public on the matter.