Manitoba will introduce a $1500.00 Homeownership Affordability Tax Credit and increase spending on health care, seniors, and long-term care by $1 billion.
In his successful election campaign last year, Premier Wab Kinew promised to fix health care and make life more affordable for Manitoba families.
Finance Minister Adrian Sala released the fiscal roadmap today to make good on those promises while pledging also to build healthier communities, grow the economy while ensuring the government works for all its citizens.
Here is what you need to know about Manitoba’s 2024 Budget.
Just the Facts
Last month, Minister Sala said the budget deficit for the 2023 fiscal year was projected to reach $2 billion, up from $1.6 billion in December.
Budget 2024 forecasts that the deficit to shrink to $796 million and to $363 million in Budget 2025. In addition:
- Economic growth will increase to 0.6 per cent in 2024 and 1.7 per cent in 2025.
- Inflation is forecast at 2.5 per cent in 2024 and 1.5 per cent in 2025
- Employment to expected to increase by 1.2 per cent in 2024 and 1.5 per cent in 2025
- The unemployment rate is expected to be 5.7 per cent in both 2024 and 2025
- Population is expected to increase by 2.6 per cent in 2024 and two per cent in 2025.
Rebuilding Health Care
It will take a lot of money to make good on Kinew’s pledge to fix health care. Budget 2024 increases spending on health, seniors care and long-term care by $1 billion or 13.5 per cent.
A total of $309.5 million is allocated to retain, recruit, and train more health care workers including:
- $66.7 million to increase bed capacity and reduce ER wait times
- $25.2 million to permanently increase critical care capacity in Intensive Care Units (ICUs)
- $47.3 million to connect more Manitobans with a Family Doctor
- $15.6 million for new training seats for doctors and $6 million for new training seats for medical specialists
- $12.3 million recruiting and training new Family Medicine Doctors
- $1 million for a nurse training simulator
- $8.7 million for physician assistants, nurse practitioners, respiratory therapists and more
- $6.5 million in ongoing operating funds for four 24/7 ambulances and the paramedics to support them
- $1.6 million for the Provincial Nursing Float Pool
- $1.4 million for other physician recruitment and retention
In addition, significant strategic investments are being made to increase health care quality and capacity including:
- $635 million in 2024 for health capital investments, including design and consultation work to build a new Victoria Hospital Emergency Room
- $17.6 million to open two new Minor Injury and Illness Clinics and to establish the first of five primary care clinics
- $6.9 million in operating for better cancer care
- $50 million for the new Health System Innovation Capacity Fund to reduce wait times for surgeries and tests in Manitoba
- $50 million to modernize electronic patient medical records across Manitoba
- $21.8 million to provide better care for seniors
- $4.6 million for a helicopter medevac service for patient transportation in northern Manitoba
- $7.7 million for prevention and services for Sexually Transmitted Blood Borne Infections (STBBI) and for Human Immunodeficiency Virus (HIV)-related illness testing and care
Lowering Costs for Families
Although Manitoba boasts the lowest inflation rate in Canada, people are still feeling the financial squeeze on everything from housing and food to the cost of filling up their cars and trucks.
Before the budget was even tabled, Kinew told media outlets that the budget will extend its 14-cent-per-litre fuel tax holiday until the end of September, a measure that was confirmed by Sala. In March, the premier boasted that Manitoba has the lowest gasoline prices in Canada.
The budget boasts other measures to reduce the costs for families. Some of those highlights include:
- New $1,500 Homeowner’s Affordability Tax Credit
- Increased Renters Tax Credit and seniors top-up
- Doubling the maximum Fertility Treatment Tax Credit
- Free prescription birth control for all Manitobans
- $10/day childcare all year round, including more spaces
- Five per cent lower auto insurance rates
- $300 security system rebate for families and small businesses
- Broad middle-class tax cut that increases personal income tax bracket thresholds and Basic Personal Amount
- $4,000 rebate for new electric vehicles (EVs) and plug-in hybrids
- $2,500 rebate for used EVs and plug-in hybrids
- Increasing financial support for low-income renters
- Funding for seniors’ accessibility upgrades
- Doubling the prenatal benefit, making it the highest in Canada
- Increasing Employment and Income Assistance (EIA) supports for low-income families
- Increasing loans and minimizing upfront financing costs for young farmers
- Agricultural Crown land lease freeze
- Increasing financial aid for post-secondary students
- Introducing a new Rental Housing Construction Tax Credit to help address pressures in the rental market and help keep rents lower
Healthier Families and Safer Communities
One of the key focuses of the budget is making investments to ensure all Manitobans are healthy and safe. Highlights include:
- $104.2 million in education funding to help every child reach their full potential, including $30 million for universal school nutrition
- $160 million in capital investments in school, including two new schools in Winnipeg as part of the first phase of our plan to build more schools
- $116 million in funding to build and maintain social and affordable housing
- Doubling the pre-natal benefit from $81.41 per month to $162.82 to help the youngest Manitobans start life in a good way
- increase of $20 million for Community Living disABILITY services/Children’s disABILITY services
- $20 million for implementation of MMIWG2S+ strategy initiatives
- $20 million investment for the Prairie Green Landfill search
- $1.4 million for a Sexual Assault Crisis Response and Healing Program
- $58.9 million increase to lift the freeze on municipalities including an increase of $51.6 million to operating grants, and $7.3 million to capital grants
- Over $4.5 million in new funding for the arts, culture, and sports sectors
- $3.9 million to establish a supervised consumption site, addiction treatment beds, and support harm reduction services
- $4 million to hire 25 more mental health workers to work alongside law enforcement
- $6.3 million for implementation of the public safety strategy with a focus on youth crime prevention • an increase of $13.7 million in funding for police agencies
- $10 million in funding through the Low Carbon Economy Fund to reduce greenhouse gas emissions
- $6.4 million to protect the environment through a collection of climate and sustainability initiatives
Growing the Economy
In his election night speech, Kinew said that a strong economy is needed to ensure government can achieve its other objectives. Budget 2024 makes several investments to help stimulate economic growth including:
- $540 million capital investments in highways, other transportation, and water infrastructure
- $146.9 million total in Business Risk Management programs, including Agri-Insurance, Wildlife Damage Compensation, AgriStability and Agri-Invest
- $32.9 million increase for the Federal/Provincial Investing in Canada Infrastructure Program to support continuing infrastructure projects
- $10 million investment in New Flyer Industries Group’s All Canadian Build facility to build more electric buses in Manitoba and create a centre of excellence
- $7.7 million increase for highway maintenance operations, including 24/7 Perimeter Highway snow clearing
- $20.9 million to support new child-care spaces and increase wages for childcare workers
- $43 million to support post-secondary students training for their careers
- $1.5 million to increase the number of apprenticeship training seats to help grow our skilled labour force
- $1 million for adult education to address skills gaps
- $135,000 for implementation of the Veterinary Strategy to help address a shortage of veterinary professionals in Manitoba
- $200,000 additional Manitoba Agricultural Services Corporation service centres
- Investing $518,000 in new supports for Ukrainian refugees
To learn more about the 2024/2025 Manitoba Budget please see here.
If you have questions about what this budget means for your sector, business, or association specifically, please reach out to your Manitoba Counsel Public Affairs team:
Brad Lavigne, Partner
