Earlier today, Manitoba Finance Minister, Cameron Friesen, tabled the province’s budget for the 2022-2023 fiscal year. The budget documents show more than a $1 billion improvement in the deficit is forecasted over last year, with a projected deficit of $548 million. Expenditures are budgeted to increase 2.4% to $19.9 billion, while a 8.5% jump in revenues to $19.4 billion helps close the gap. Strong real GDP growth of 3.6% in 2022 and 2.8% in 2023 is forecasted, with the unemployment rate projected to hover around 5%. A gradual path back to balance is planned with deficits being recorded until 2028.
As expected, healthcare was a large focus of the budget, with the province investing $110 million to help reduce the diagnostic and surgical backlog. Over $800 million was committed to capital investments for rural and northern healthcare, with $630 million for the ongoing COVID-19 response and contingencies.
On the tax side, the largest change was an increase to the education property tax credit. The rebate will increase to 37.5% in 2022, and 50% in 2023. Those changes will save the average residential homeowner over $1,300 in two years. A 10% Education Property Tax rebate will also be given to businesses and industrial properties in 2022 and 2023, and a new Renters Tax Credit was introduced that will be capped at $525 on an annual basis. Exemption levels were also slightly raised for the Health and Post-Secondary Education Tax that is applied on payroll.
The province made changes to improve access to capital by investing $50 million in a new fund that is intended to leverage private sector dollars and unleash hundreds of millions in new investment. The Small Business Venture Capital Tax Credit was also made permanent in this budget, and Manitobans will now also be able to use the tax credit when they invest in venture capital funds.
This wasn’t considered to be a pre-election budget as Manitobans aren’t scheduled to go to the polls until October 2023. Recent surveys have shown the Opposition NDP with a lead over the incumbent PC’s, so the government is certainly still hoping this budget will improve their standing with voters
- Manitoba Budget 2022 Speech
- News Release – Budget 2022 Invests in Making Life More Affordable for Manitobans
- News Release – Budget 2022 Provides Historic $7.2-Billion Investment to Strengthen Health Care for all Manitobans
- News Release – Manitoba Government Presents Budget 2022: Recover Together
We’re Here to Help
For information and insights about what the 2022 Manitoba Budget means for the province’s political landscape, please contact:
Michael Juce – Vice President