Province’s budget Trump-proofs economy according to minister

The province released this year’s budget of $25 billion with $3.7 billion in capital projects, which included funding to farmers to deal with tariffs from abroad, funding for municipalities with gas tax revenue, and building of new schools.

“We didn’t start this fight, but we are not backing down. We are building up our province. We’re Trump-proofing our economy and our country with a historic $3.7 billion investment in capital projects like schools, hospitals, and every part of Manitoba. This is the largest capital spend in Manitoba history,” said Finance Minister Adrien Sala.

In the budget was the announcement of a $100 million contingency fund for farmers if the U.S. imposes a 25 percent levy. Described as a “worst case scenario” that will initiate protection for canola and pork farmers from those tariffs and the current 100 percent tax from China on those same products. The U.S. has stated it will impose the 25 percent tariffs on April 2.

According to Manitoba Pork, Manitoba sells more than $450 million worth of pork into the United States every year and ships between three million and 3.5 million live animals that are worth more than $200 million. The pork industry supports 22,000 jobs in Manitoba and contributes $2.3 billion a year to the provincial GDP.

Manitoba’s canola seed, oil, and meal exports totaled over $2.8 billion in 2023, with the top export destinations being America, China, Japan, and Mexico. About 94 percent of all canola oil and meal was exported to the U.S. market.

Steinbach MLA Kelvin Goertzen believes there should be support for businesses and farmers should the tariffs take effect, but he doesn’t think $100 million will be enough. He also wants to know what the NDP is doing to incentivize the reduction of interprovincial tariffs.

“I think everybody hopes the Trump administration backs off these unjustified tariffs. But even if they do, I think there’s also that feeling that we should never be that vulnerable again and we do need to develop other markets,” he said.

The government also announced the young farmers rebate will rise to $400,000 with the maximum individual lifetime limit increasing to $40,000.

The province also announced municipal funding through its One Manitoba Growth Fund, which gives municipalities four percent of gas tax revenue to spend as they see fit. This amount is to be added on top of a current two percent increase from last year for municipalities.

“This year that’s more than an additional $12 million that’s going to head out to municipalities in funding,” said Sala.

RM of Hanover Reeve Jim Funk said the boost in revenue from the province is welcomed, but there will still be a shortfall.

“I would like to see more. It would certainly help to cover some of the expenses we incur during the course of the year, but there is such a shortfall I would hope for more.”

The province also announced 11 new schools will be built across the province including a regional vocational high school in the Town of Ste Anne.

“We’re very excited and grateful,” said Seine River superintendent Colin Campbell.

School board chair Wendy Bloomfield said what vocations will be offered at the school will be determined down the road. There are currently about 425 students at Ste Anne Collegiate, but the number of students for the new school is unknown. The cost of the new school is also unknown at this time, but it is expected to open in September 2028.

Green Valley School in Grunthal will get its expansion and has gone to tender.

The province projects a $794 billion deficit that could increase to $1.9 billion should the trade war escalate, but the government claims it will have a $10 million surplus in 2027-2028.

Opposition leader Wayne Ewasko doesn’t think the NDP government will be able to pull themselves out of the deficit and create a surplus.

“At the end of the day they’re not going to be able to balance the budget unless they drastically increase the taxes which they’ve done by cutting education and forcing school divisions to have double digit tax increases,” he said.

Ewasko claims the income tax and the indexing of the tax brackets have been frozen which means the basic personal exemption or the income tax brackets are not being increased to the rate of inflation.

“It’s a hidden tax. People aren’t going to actually see it but they’re going to feel it. But it’s like they don’t know they’re getting slapped, but they’re getting slapped.”

He said the Kinew government is announcing things that the former PC government announced prior to the election, such as the build of a personal care home in Lac du Bonnet and the building of new schools.

La Verendrye MLA Konrad Narth claims the 2025 budget rakes in $182 million more in education property taxes and $82 million more in income taxes. He stated in a press release that the government will collect more than $1 billion more in taxes and other revenues in 2025. Narth also claims Manitoba’s GDP will be slashed by $3.6 billion should the tariffs and retaliatory tariffs take effect.

Minister Sala’s response to his critics is that the government has lowered inflation by cutting the gas tax and implementing a permanent 10 percent relief at the pump. He said the government is freezing hydro bills for one year and is increasing the Homeowner’s Affordability Tax Credit to help with property taxes.

Sala also said the government has cut the payroll tax to help small businesses grow and remain competitive. Starting Jan. 1, 2026, the payroll tax cut will save $8.5 million annually for eligible Manitoba businesses where payrolls at or under $2.5 million will be tax-exempt.

Other items in the budget include rebates of between $2,500 and $4,000 for the purchase of electric vehicles except Tesla’s and EVs made in China. More than $800 million for road infrastructure projects with $881 million in Manitoba Hydro upgrades plus 600 megawatts of wind power to be included in the grid. The government will also invest $36 million into the arctic gateway and has approved the opening of a new gold mine in northern Manitoba.

For renters, an income tax credit is rising to $625 and for low-income seniors the rebate is increasing to $357 from $328. About $47 million will be spent to add 97 fully staffed beds to hospitals and $48.2 million will be used to train more health care staff including 176 new educational seats (16 for paramedics, 20 residency spots for doctors, 40 for lab and X-ray technicians and 100 for health-care aides) amid $770 million in new funding to recruit and retain front-line staff.