WINNIPEG, Manitoba, April 7 (Reuters) - The Canadian province of Manitoba forecast on Wednesday a C$1.6-billion ($1.27 billion) deficit in the current 2021-22 fiscal year, down from last year’s C$2.1 billion, as it looks to slowly recover from the COVID-19 pandemic. The deficit is largely due to additional costs of healthcare and support programs related to the pandemic and a drop in revenue due to economic restrictions, the provincial government said in releasing its new budget. Canadian provincial governments, like the national government, have run bigger deficits as they try to slow the pandemic’s spread and support economies hit hard by lockdowns. “The virus has ravaged our finances,” Finance Minister Scott Fielding said. “Our path to balance will be gradual and balanced.” Fielding projected shrinking deficits through 2024-25. A third wave of infections is spreading across much of Canada, although Manitoba’s daily case counts are currently less than one-fifth of their record high of 593 infections, reached in November. Its vaccination program has advanced more slowly than in other provinces. Manitoba’s budget includes C$1.2 billion for purchasing protective equipment, supplying vaccines and other COVID-19 expenses. The Progressive Conservative government, led by Premier Brian Pallister, plans to trim spending by 0.6% to C$19.4 billion, contributing to the smaller deficit. It forecast provincial revenues for the 2021-22 fiscal year at C$17.8 billion, up 2.1% from last year as income and sales tax revenues look to rebound slightly when the pandemic eventually ebbs and allows more economic activity. Manitoba plans to reduce education property taxes by 50% during the next two years for residential and farm properties, and by 10% for other properties. The province’s real gross domestic product looks to grow 4.1% in 2021 and 3.6% in 2022, the government said. Neighboring Saskatchewan forecast on Tuesday a higher, C$2.6-billion deficit for 2021-22.