Political leaders in Manitoba are expressing guarded relief after the unveiling of federal Finance Minister Jim Flaherty's deficit-busting measures in his budget delivered Thursday.

Provincial Finance Minister Rosann Wowchuk said she's happy Flaherty chose to not slash transfers to the provinces.

Manitoba receives about $4 billion a year in federal payments, amounting to about one-third of provincial revenues.

Wowchuk said the federal government could have made cuts on the backs of the provinces as it grapples with a $56-billion deficit, but chose not to.

But she added Manitoba may still end up having to spend more on child care and other services if federal funding in specific areas falls short.

She said the initial numbers out of Ottawa don't change her own budget calculations by much, but the federal plan was pretty vague and the details have yet to be released.

The Manitoba government is facing a $555-million shortfall and is to present its own budget March 23.

Funding to address social inequality

Manitoba First Nations leaders said they were pleased with Flaherty's announcement of $170 million in spending earmarked to address problems of violence, poverty and social inequality.

Ron Evans, Grand Chief of the Assembly of Manitoba Chiefs, said he's especially happy that $10 million has been set aside for the next two years to continue investigations into the high number of murdered or missing aboriginal women in Canada.

But Evans said he's still waiting to learn what funding Manitoba efforts will receive.

"We have to analyze the details and we need to find out for ourselves what it means for Manitoba," Evans said.

However, Evans said he was concerned about Flaherty's omission of education in First Nation communities as a budget priority.

Evans said of the 64 Manitoba First Nations communities represented by the Assembly of Manitoba Chiefs, 51 of them have to send students away from home to get an education.

"We need to try and do our best to take the education right into the communities, using new technology," Evans said. "And really, we should invest in educating our people."

With file from The Canadian Press