Fiscal plan boosts spending on health care, social services and other areas by an average of close to 10%
Author of the article:
Published Mar 07, 2023 • Last updated 7 hours ago • 2 minute read
Join the conversation
Manitoba Finance Minister Cliff Cullen listens to a question during a pre-budget press conference at Cityplace in Winnipeg. Photo by KEVIN KING/Winnipeg Sun WINNIPEG — Manitoba’s Progressive Conservative government is loosening its purse strings and promising what it calls record income tax cuts in its last budget before a provincial election.
Advertisement 2 This advertisement has not loaded yet, but your article continues below.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada.
Unlimited online access to articles from across Canada with one account Get exclusive access to the National Post ePaper, an electronic replica of the print edition that you can share, download and comment on Enjoy insights and behind-the-scenes analysis from our award-winning journalists Support local journalists and the next generation of journalists Daily puzzles including the New York Times Crossword SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada.
Unlimited online access to articles from across Canada with one account Get exclusive access to the National Post ePaper, an electronic replica of the print edition that you can share, download and comment on Enjoy insights and behind-the-scenes analysis from our award-winning journalists Support local journalists and the next generation of journalists Daily puzzles including the New York Times Crossword REGISTER TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience.
Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors The fiscal plan put forward Tuesday, with almost $2 billion in new spending, is a marked departure for the governing Tories after several years of fiscal restraint.
Financial Post Top Stories Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.
By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails or any newsletter. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300
“Unlike the budgets of my predecessors where fiscal responsibility ruled the day, Budget 2023 fully reflects the Progressive Conservative roots of our premier (Heather Stefanson),” Finance Minister Cliff Cullen, who was named to the post earlier this year, said in his prepared budget speech.
“This year’s budget provides help when it is most needed. It provides historic help for Manitobans.”
The fiscal plan boosts spending on health care, social services and other areas by an average of close to 10 per cent. Among many new measures in health care, the government is expanding coverage of insulin pumps to all adults with a Type 1 or Type 2 diabetes diagnosis. Until now, coverage has been limited to people aged 18 to 25.
Article content This advertisement has not loaded yet, but your article continues below.
Article content Personal and business taxes are also being cut under the budget, although much of them are promised for after the election.
This year, the basic personal exemption — the threshold at which individuals start to pay income tax — will rise to $15,000 from $10,145. The change will save people up to $524.
Next year, personal income tax brackets are to be moved higher. The middle bracket would rise to $47,000 from $36,842, and the top bracket would move to $100,000 from $79,625.
The threshold at which employers are charged a tax on their payroll is also to increase next year, to $2.25 million from $2 million. The rate of the payroll tax may also be reduced next year if provincial revenues are higher than expected, Cullen said.
This advertisement has not loaded yet, but your article continues below.
Article content The governing Tories have been trailing the Opposition New Democrats in opinion polls for more than two years. The numbers did not move even after Stefanson replaced Brian Pallister as premier in 2021.
B.C. Budget 2023: What the $4.2 billion deficit funds — and what it doesn’t Alberta’s Danielle Smith uses budget to promise big on health care Bank of Canada set to pause interest rates before U.S. Federal Reserve The drop in support started during the second wave of the COVID-19 pandemic as hospitals struggled to handle a surge of patients. At one point, dozens of intensive care patients were flown to other provinces due to a bed shortage.
“Our No. 1 priority following the pandemic has been addressing the shortage of nurses and other health-care professionals in Manitoba,” Cullen said.
The budget includes previously announced funding aimed at reducing wait times and easing surgery backlogs.
The government can afford the new spending and tax cuts thanks to a rebounding economy and increased federal transfer payments, Cullen said.
Federal equalization payments, which help poorer provinces offer services similar to richer ones, are up by 19 per cent — or $577 million — this year in Manitoba.