Manitoba budget focuses on COVID-19 recovery, continues aggressive push to cut deficit

Manitoba's latest provincial budget continues the Progressive Conservative government's efforts to claw out of the fiscal hole created by the COVID-19 pandemic, while trying to address ongoing pressures on the health system and the economy.

The government's 2022-23 spending plan, announced Tuesday, slashes the deficit by more than $1 billion compared to last year, while forging ahead with an aggressive push to reduce taxes, including a plan to eventually eliminate the education property tax. 

Spending increases for most departments are moderate.

Speaking to reporters before presenting the budget at the legislature, Finance Minister Cameron Friesen was asked why the province is pursuing its efforts to cut taxes, even as the province faces pressure from the pandemic, inflation and global uncertainty caused by Russia's invasion of Ukraine.

 "Governments and finance ministers are all about balancing priorities," he said. 

"We simply think that it's not right to make Manitobans wait.... They need affordability now."

Total spending in this year's budget is set to rise to $19.9 billion, from $19.4 billion last year. Revenues are expected to increase to $19.4 billion, up from $17.8 billion in the 2021-22 budget.

The Department of Health's budget increases by $105 million, or 1.6 per cent, which the province attributes in part to a wage settlement with the Manitoba Nurses. The budget also allocates $54 million for the newly created Department of Seniors and Long-Term Care.

The budget includes $110 million allocated to address the surgical and diagnostic backlog, up from $50 million in last year's budget.

It also puts $9 million toward increasing capacity in Manitoba's intensive care units. That will add 28 ICU beds to the province's current baseline capacity, which is 72. 

As well, it includes more than $100 million for redeveloping the emergency room at St. Boniface Hospital, tripling its size. 

The budget also includes a moderate boost for education funding, introduces an expanded tax credit program for residential renters, and commits a total of $18 million to index Rent Assist payments to inflation. 

It also includes $630 million for the province's ongoing COVID-19 response, and other contingencies, such as the war in Ukraine. 

The province projects a budget shortfall of $548 million for 2022-23, down from the $1.6 billion deficit projected in the 2021-22 budget.