Building One Manitoba - Manitoba Budget 2025

Manitoba’s 2025 Budget, Building One Manitoba, was unveiled by Premier Wab Kinew’s Government yesterday afternoon. It's the second budget since the Manitoba NDP came to power in October 2023. 

Finance Minister Adrien Sala touted record investment in key infrastructure builds as the province faces uncertainty because of President Trump’s trade wars. Sala and Kinew made it clear that they were “Trump Proofing” the Manitoba economy. Like the 2024 Budget, there was a major focus on healthcare, education, and infrastructure while maintaining a concern for affordability.  

Like the previous NDP government of former Premier Gary Doer, the Kinew Government is more fiscally moderate than many would expect from the party and economic development has been a key area of focus, as highlighted in this year’s budget. Additionally the NDP Government is reducing the province’s payroll tax as part of an effort to help employers and grow the province’s economy. 

Here are the fiscal highlights of Manitoba’s 2024 Budget:

• Deficit Projection: Manitoba's deficit is projected at $794 million, slightly down from last year. The government remains committed to returning to a budget surplus by the 2027/28 fiscal year, although it did hint at uncertainty because of impacts of the trade dispute with the United States. 
• Revenue: Provincial revenue has increased 8.1% since Budget 2024, reaching a total of $25.056 billion. If US tariffs are to be fully implemented, revenue would be expected to shrink by about $559 million.
• Expenses: A 5.5% increase in expenses amounts to the province spending $25.85 billion, of which $3.7 billion is for capital infrastructure investment for schools, hospitals, and care homes. This is the province’s largest ever infrastructure investment.  
• Provincial Debt: Forecasted debt is expected to be $34.5 billion, lower than last year's forecast projected.

Budget 2025 contains many commitments from the NDP’s fall election platform, as well as other government priorities, including: 

• Healthcare: Budget 2025 highlighted the government’s commitment to “rebuilding healthcare” which was the major commitment of the 2023 election campaign. Key investments include $770 million to recruit and retain frontline healthcare staff, $40 million for seniors care, new emergency departments, and upgrade to the Children's Hospital, three new personal care homes, and a mobile MRI unit for northern communities. 
• Cost of Living and Affordability: The NDP government has made the gas tax cut permanent with a 10% reduction, other affordability measures include a one year freeze on hydro rates, expanding $10-a-day child care, and an increase to the Homeowners Affordability Tax Credit
• Economic Development: The government has highlighted a $3.7 billion capital infrastructure spend, which is a key component of their economic development plans and efforts to combat President Trump's tariffs. Additionally the province will be reducing the payroll tax, building and upgrading key highways, and developing a new gold mine in northern Manitoba. 

In the face of uncertainty with moving timeline and goal posts with the United States trade war, Manitoba's government has come forward with their plan to protect the province's economy while moving on their major election commitment of rebuilding healthcare.

Upstream Strategy Group is here to help and provide additional insights on how you can strengthen your strategic advocacy with the Government of Manitoba.

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