The government’s spending plan for 2022-23, announced Tuesday, cuts the deficit by more than $ 1 billion from last year, and is moving forward with an aggressive push for tax cuts, including a plan to end the tax cut. real estate in education. Cost increases for most departments are modest. Speaking to reporters before presenting the budget to parliament, Finance Minister Cameron Frisen was asked why the province is continuing its efforts to cut taxes, even as the province faces pressure from pandemics, inflation and global uncertainty caused by the Russian invasion. in Ukraine. “Governments and finance ministers have to do with balancing priorities,” he said. “We just think it’s not right to make Manitoba wait; we need affordable prices now.” Finance Minister Cameron Frisen delivers the 2022 budget to the Manitoba legislature in Winnipeg on Tuesday. (David Lipnowski / The Canadian Press)
Total spending in this year’s budget is expected to increase to $ 19.9 billion, up from $ 19.4 billion last year. Revenue is expected to increase to $ 19.4 billion, from $ 17.8 billion in the 2021-2022 budget. The Department of Health’s budget increases by $ 105 million, or 1.6 percent, which the county attributes in part to a paycheck with Manitoba Nurses. The budget also includes $ 54 million for the newly established Department of Elderly and Long-Term Care. The budget includes $ 110 million spent on outstanding surgery and diagnosis, up from $ 50 million in last year’s budget. It also provides $ 9 million to increase capacity in Manitoba intensive care units. This will add 28 ICU beds to the current base capacity of the province, which is 72. It also includes more than $ 100 million to redevelop the emergency room at St. Louis Hospital. Boniface, tripling its size. The budget also includes a modest boost to education funding, introduces an expanded tax credit program for tenants, and commits a total of $ 18 million to adjust Rent Assist payments to inflation. It also includes $ 630 million for the province’s ongoing response to COVID-19 and other contingencies, such as the war in Ukraine.

“More polite and gentle” budget

The county forecasts a budget deficit of $ 548 million for 2022-23, lower than the deficit of $ 1.6 billion projected in the 2021-2022 budget. Despite this dramatic reduction, the province’s fiscal outlook estimates that it may take years for the budget to balance. Frisen told reporters that the province is well on its way to eliminating its deficit within seven years. According to the most optimistic scenario of the financial perspective, however, the province predicts that it could eliminate the deficit within the next year. Christopher Adams, an assistant professor of political science at the University of Manitoba, described this year’s budget as “kinder and more polite” than that of former Prime Minister Brian Palister. He is trying to reach out to people who are worried about debt and taxes, while also addressing concerns about affordability ahead of next year ‘s provincial elections, Adams said. “I believe the government is striking a number of notes to support its support for middle-class voters, and that is something they must do if they are to survive in 2023.”

Affordable housing prices

The Progressive Conservatives promised during the 2019 provincial election campaign to gradually eliminate school taxes from real estate tax bills, which were initially predicted to last 10 years. Tuesday’s budget says the education tax cut on education will increase from 25 percent to 37.5 percent this year and again to 50 percent in 2023. Residential and rural property owners will see their discount increase by an average of $ 371 in 2021 to $ 581 in 2022 and then to $ 774 in 2023, according to the province. Commercial property owners will continue to receive a 10 percent discount. Tenants previously received a 20 percent credit for the annual rent paid, up to a maximum of $ 525 per year, as part of their education tax deduction. They will now be covered by a new program for renters. Previously, the tax deduction for tenants was based on 20 percent of the rent paid for the year, up to a maximum of $ 525. Now, the discount will be based on a fixed monthly amount – but will still be limited to a maximum of $ 525. The rent deduction plan will, however, be extended to include people receiving Rent Assistance who are not registered for Employment and Income Assistance, as well as people living in social housing, adding up to 45,000 eligible households. for credit.

Revenues are increasing

This is the seventh budget of the current Progressive Conservative government and the first under Prime Minister Heather Stephenson. Manitoba’s Prime Minister Heather Stephenson told reporters on Tuesday that the province could cut costs for Manitoba while increasing spending on problems such as outstanding surgery and diagnostics. (Fernand Detillieux / CBC)
Asked about her government’s plan to offer a tax cut on education while increasing spending amid a continuing pandemic and global uncertainty, Stephenson said the government could “walk and chew gum at the same time”. “We can make these significant investments in healthcare to address these diagnostic and surgical issues, as well as provide money to put them back in Manitoba’s pockets,” he told reporters after Frissen’s budget. legislature. In particular, Adams said the budget does not contain significant increases in fees or taxes. The expected increase in revenue is mainly due to the growth of the economy, as well as the increase of $ 610 million, or 10.8 percent, in federal transfers. Real gross domestic product (GDP) is projected to grow by 3.6 percent in 2022 and by 2.8 percent in 2023. Net debt to GDP is expected to fall to 35.9%, from 39.9% in the 2021-2022 budget. NDP leader Wab Kinew said Stefanson’s first budget as prime minister was a continuation of its predecessor’s policies. “Given everything that is happening right now – with Ukraine, with the cost of living, with COVID – the people of Manitoba are looking for reasons to be optimistic,” said the official opposition leader. “They are looking for reasons to hope. But unfortunately they are not going to find it in this budget today.” Manitoba NDP leader Wab Kinew spoke to reporters after the budget was tabled in parliament on Tuesday. He said the province’s plan has no details on how it will develop the economy. (Travis Golby / CBC)
The county plan has no details on how it will develop the county economy, Kinew said, adding that any such plan should include helping communities in northern Manitoba as well as prosperous areas in the south. It also did not provide schedules for when the province planned to clear surgical and diagnostic delays.

New cost and fee cuts

The budget also includes a $ 5 million fund for initiatives aimed at promoting reconciliation with indigenous peoples and communities. The budget document states that the money from this fund can be used to support a wide range of reconciliation-related activities, including initiatives to address the damage caused by the school housing system and those that enhance indigenous cultures. and languages. Last year, the county announced $ 50 million for a new venture capital fund. This year, these funds will be available, although Friesen did not specify when. The county plans to reduce annual registration fees for most non-commercial vehicles by $ 10, following two similar cuts in recent years. Some companies will also be exempt from the provincial payroll tax after the county raises the limit from $ 1.75 million to $ 2 million in total pay.