Manitoba Budget 2024 - One Future. One People. One Manitoba.

Manitoba’s 2024 Budget, One Future, One People, One Manitoba, was unveiled by Premier Wab Kinew’s government yesterday afternoon. It's the first budget since the Manitoba NDP came to power following last October’s provincial election and the first budget for Finance Minister Adrien Salal. The budget, which projects a nearly $800 million deficit for the year ahead, includes a heavy focus on healthcare spending, a key election promise for the NDP government.

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

• Deficit Projection: Manitoba's deficit is projected at $796 million. The government plans to return to balance in four years. The new government has spent months prepositioning this deficit, claiming that the previous government had hid it in an effort to present a balanced budget during the election.
• Revenue: Provincial revenue has increased 4.3% since Budget 2023, reaching a total of $23.3 billion. This is reflective of an increase in most revenue categories, with the exception of Government Business Enterprises, with net income declining by $363 million. Federal transfers are expected to rise by just under $1 billion.
• Expenses: A 6.1% increase in expenses amounts to the province spending $24.1 billion, mainly due to increased healthcare funding. 
• Provincial Debt: Forecasted debt is expected to reach $35 billion.

Budget 2024 contains many commitments from the NDP’s fall election platform, as well as other government priorities, including: 

• Healthcare: Budget 2024 highlight’s the government’s commitment to “rebuilding healthcare”, including increasing healthcare spending by 13.5%, totaling $8.2 billion. The government has also promised to hire a thousand new healthcare workers and will begin work on a new emergency room for the Victoria General Hospital in vote-rich south Winnipeg, the latter being part of the $635 million committed to healthcare capital projects. Additionally, the government will invest $500,000 into Manitoba’s diabetes action plan to improve diabetes prevention, detection, and management. 
• Cost of Living and Affordability: The government has extended the Gas Tax pause by another three months. The budget includes a $4,000 electric vehicle rebate and plug-in hybrids ($2,500 for used EVs), a reduction in auto insurance rates through the government owned Manitoba Public Insurance, and subsidized prescription birth control. Additionally, the government plans to introduce a homeowners’ affordability tax credit by 2025, which will replace the existing school tax rebate and education property tax credit. 
• Infrastructure Investment: The government showcases new capital funding for schools, new money for social housing, and $540 million for highways and other transportation infrastructure. 

Manitoba’s economy is expected to slow, with its Gross Domestic Product (GDP) growth decelerating in 2024, but rebounds in 2025 with forecasted expansion. Upstream Strategy Group is here to help and provide additional insights on how you can partner with the Government of Manitoba.