PCs promise income tax relief for Manitobans in pre-election provincial budget

All working Manitobans will have less of their income taxed — and thousands of the province's lowest income earners will stop paying income tax entirely — as the Progressive Conservative government continues to loosen the purse strings in the waning months before a scheduled October election.

The Manitoba government's 2023 budget, released Tuesday, commits to raise the income level at which people start paying tax from the current $10,145 to $15,000.

That amount — the basic personal exemption — normally increases each year based on the rate of inflation, a calculation that would have raised the exemption to $10,855 this year.

On average, a taxpayer will save $448 due to the larger increase, according to the province. The change also means 47,000 more low-income earners will pay no income tax at all, the province says.

The government is planning as well to raise all tax brackets starting in 2024, which will further lower the tax burden on working Manitobans. 

Finance Minister Cliff Cullen called the budget a marked departure from the austerity-minded approach the Progressive Conservatives are known for. 

A $363-million deficit is projected, but the government could have balanced its budget with the money it is instead dedicating to tax relief. 

"Unlike the budgets of my predecessors where fiscal responsibility ruled the day, Budget 2023 fully reflects the Progressive Conservative roots of our premier," Cullen said Tuesday afternoon, in his speech presenting the budget in the legislature.

Premier Heather Stefanson, speaking during an early afternoon briefing, said her government's budget "puts hundreds of millions of dollars back in the pockets of Manitobans while investing billions more in the services families rely on."

"It is truly historic help for all Manitobans."

The $22-billion provincial budget — up almost $2 billion from the previous budget — includes a nearly half-billion-dollar hike in health-care spending, as well as funding increases for all 19 government departments.

In particular, spending for the health-care department is up seven per cent, from $6.7 billion last year to $7.1 billion for the year ending on March 31, 2024.

University of Winnipeg economics professor Philippe Cyrenne said the Progressive Conservatives are trying to win over voters with their budget.

"It looks like an election budget in some ways," he said, with tax relief "trying to appeal to people who worry about the competitiveness of living and working in Manitoba."