The Manitoba government is blaming this year's flood and economic downturn for pushing its deficit to almost $1 billion —twice what the province projected.

In the province's quarterly fiscal update, released Friday, Finance Minister Stan Struthers said the new deficit forecast is $989 million — up from $438 million.

The province shelled out hundreds of millions in unbudgeted expenses because of this year's severe flooding, Struthers said.

The province projects flood-related costs will likely hit $815 million by the end of this fiscal year.

Some of that is covered by Ottawa but Manitoba's costs are still much higher than expected.

"As noted at the end of the first quarter, unprecedented flooding in 2011 has resulted in significant, unbudgeted expenditures for flood fighting, mitigation work and financial assistance programs that will affect the budgeted results for 2011/12," stated the fiscal report.

"At the end of the second quarter, $437 million has been expended on the spring flood."

That figure balloons even higher when the $100 million spent to dig an emergency channel to lower the level of swollen Lake Manitoba, as well as necessary repairs for damaged roads and bridges.

"The projection for infrastructure expenditures is $159 million, including the restoration of bridges, roads and dikes and the construction of the outlet channel to alleviate the pressure on Lake Manitoba and Lake St. Martin," the update stated.

More than flood to blame

But the flood isn't the only thing draining government coffers.

The NDP is also spending $60 million more on families and $33 million more on public safety. The province made a choice to keep spending when the economic downturn hit, which helped drive up the deficit, Struthers said in a statement.

"The government continues to monitor these pressures and expenditure management initiatives are being implemented to address them," the update said.

All the extra spending comes at a time when core government revenue is about $42 million lower than budgeted, the update said.

'They are creating a ticking time bomb in terms of future tax increases as a result of the rapidly growing debt.'—Progressive Conservative leader Hugh McFadyen

Although critics say the ballooning deficit is proof of NDP mismanagement, the government says Manitoba's growth is expected to improve and they still plan to balance the books by 2014.

"Economic growth in Manitoba is stable and progressing near the historical average annual rate," the update said.

"Reflecting Manitoba's stable economic and demographic fundamentals, growth is expected to slightly increase over the next two years while Canada's growth is expected to slow."

NDP hid truth: McFadyen

Progressive Conservative leader Hugh McFadyen said the huge deficit can't all be blamed on the weather. The NDP has mismanaged the province's economy and spent itself into a hole, he said.

More than $200 million of the deficit had nothing to do with the flood, he said. The ballooning deficit shows the NDP hid the truth from Manitoba voters during the recent provincial election, McFadyen said.

It means the NDP won't be able to balance the books without significantly hiking taxes, he said.

"They are creating a ticking time bomb in terms of future tax increases as a result of the rapidly growing debt," he said.