Proposed 2023 Manitoba provincial budget means fewer paycheque cuts, minister says

Manitoba’s proposed 2023 budget acknowledges inflation and aims to leave more than $5,500 in the pockets of the average family by 2024.

“This budget provides help when it is most needed. It provides historic help for Manitobans,” said Minister of Finance Cliff Cullen

The new budget projects a $363-million deficit, down from $15 million from the current 2022-23 forecast of $378 million.

It includes a personal income tax reduction which the province is calling the “largest in history,” meaning Manitobans will not pay a cent of income tax on the first $15,000 they earn.

Evelyn Jacks of the Knowledge Bureau said this will make Manitoba more competitive.

“We are still a bit behind – for example, Alberta’s tax-free zone is over $21,000 we have a ways to go there, Saskatchewan just over $17,000 but it’s a step in the right direction.”

This will mean up to $524 in savings per taxpayer compared to last year.

“Manitobans have suffered from the burden of rising costs due to inflation and the cost-shock of the federally-imposed NDP carbon tax,” said Cullen.

“We are reinvesting every cent to help struggling families make ends meet and strengthen the programs and services Manitobans rely on.”

The province said this measure will save the average two-income family over $1,000 and will remove 47,000 low-income Manitobans from the tax rolls.

Therefore, low-income Manitobans will gain the most, with a 23-per cent reduction in their taxes.

Additionally, the government is making good on its promise of redoubling efforts to heal the health-care system with what it calls ‘the largest-ever investment’ of $7.9 billion.

This is an increase of $668 million, or 9.2 per cent increase, to help shorten wait times and rebuild the front lines.

There will also be $120 million more pumped into pharmacare with more details to come.

“It came about from seniors wanting more help when it comes to that area,” said Premier Heather Stefanson.

“We are listening to Manitobans, we are taking actions and we are continuing to get things done,”

The budget initiates a $1.2-billion multi-year capital campaign that will add capacity to nine facilities including in rural hospitals, St. Boniface Hospital, Grace Hospital, CancerCare Manitoba and Health Sciences Centre, the minister added.

“We’re making foundational investments to reduce diagnostic and surgical backlogs, hire more health-care professionals and support health infrastructure needs,” said Cullen.

The premier said more information is to come regarding expanded coverage for insulin pumps and glucose monitors.

However, the number one concern in the province is the physician shortage, according to Doctors Manitoba.

“It seems like physician recruitment and retention funding was frozen it was actually cut by $1.6 million in 2017 and its never recovered, its been frozen, its been flat and it appears today we’re still in the same boat,” said Dr. Candace Bradshaw, President of Doctors Manitoba.

“We sat for announcements last fall which promised more on recruitment retention and retaining physicians that we already have and many of the recommendations made have not been followed through on, we really need to see some action, we need to see some urgency from this government and this budget just hasn’t delivered on that.” Bradshaw added.

Manitoba is also spending $76 million to offer parents $10-a-day childcare and $1.7 billion is being put into kindergarten to Grade 12 schools, which is up to $100 million from last year.

And post-secondary students can expect to see a cap to their tuition increases at 2.75 per cent.

“What we want to do is make tuition affordable for students in our province.” Said Sefanson.

The budget is also addressing violent crime and homelessness in the province by providing more than $100 million to address the challenges, including $9.4 million for 1,000 new treatment spaces for providers of substance use and addictions treatment services.

“Budget 2023 addresses the root cause of crime, with significant investments in homelessness, shelters and housing, addictions beds and enhanced services for mental health. There is also more for front-line police officers to fight violent crime.” Said Cullen.

Winnipeg Mayor Scott Gillingham said he was excited to see the investment to address homelessness and violent crime.

“Right now there’s far too much violent crime especially youth violent crime in our city – details are key we don’t see the details we will have to work out the details.”

While there is a slight increase in payroll tax exemptions for businesses, there’s not much relief considering minimum wage is set to rise to $15 an hour in the fall.

If the budget passes in June, Manitobans will start seeing savings in July.

Opposition leader Wab Kinew didn’t confirm or deny if he would vote in favour of the PC budget but he did say that he has no confidence in the current government.

Kinew said he knows the province won’t deliver on healthcare issues and that needs to change.

“I think Manitobans have lost trust in this government so for us we want investments in healthcare but we also want a new vision in healthcare.”

This is the last budget before the provincial election in October.

More information about the 2023 provincial budget can be found online.

0:52 Manitoba provincial budget reflective of Manitoban’s needs: Stefanson