Manitoba’s new NDP government, led by Premier Wab Kinew, has presented its inaugural budget.
The budget places a significant emphasis on health care, aligning with the NDP’s campaign promises to enhance health care services and address affordability issues.
During a press conference on April 2, Mr. Kinew remarked, “The challenges in health care won’t be resolved overnight, but with the investments outlined in this budget, improvements in health care are expected this year.”
The budget outlines plans to hire 100 doctors, 210 nurses, 90 paramedics, and 600 health-care aides in the next year. It also pledges to increase hospital and ICU beds, establish new minor injury and illness clinics, and primary care clinics.
Related Stories
Moreover, plans are underway to launch emergency rooms at Victoria Hospital in Winnipeg and Eriksdale, a community located approximately two hours northwest of Winnipeg.
Mr. Kinew emphasized, “Our healthcare commitment begins with ensuring adequate staffing to support these initiatives. Encouraging progress in recruitment and retention allows us to proceed with the emergency room expansions promised during the recent election.”
Healthcare and affordability were key issues in the 2023 election for the NDP. Finance Minister Adrien Sala stated that these areas are central to the NDP’s inaugural budget.
Affordability Measures
“Our first budget aims to enhance healthcare and reduce expenses for families in our province,” remarked Mr. Sala to the press.
In January, the province announced a six-month exemption from the provincial gasoline and diesel tax of 14 cents per liter, extended until September 30 in the 2024 budget.
“Given the economic challenges Manitobans have faced due to inflation and high interest rates, we are committed to easing the financial burdens week after week and month after month,” stated Mr. Kinew.
These measures encompass a new $1,500 homeowners tax credit, an increased annual renters tax credit of up to $575 starting in 2025, with additional benefits for seniors. Auto insurance rates are set to decrease by 5 percent, and a “broad middle-class tax cut” will raise tax bracket thresholds.
Other initiatives outlined in the budget consist of free prescription birth control, $10 per day childcare, and a $300 rebate for security systems for families and small businesses.
The budget also offers a $4,000 rebate for new electric vehicle (EV) or plug-in hybrid purchases and a $2,500 rebate for used EV or plug-in hybrid acquisitions.
The homeowners tax credit is anticipated to effectively eliminate education property taxes for homes valued at approximately $285,000 or less.
Overall, Mr. Kinew stated that the range of measures will enhance affordability for residents.
“This approach will significantly benefit those most in need—83 percent of Manitobans will experience a notable improvement compared to the previous administration,” the premier affirmed.
‘Elephant in the Room’
Manitoba anticipates nearly $1 billion more in federal transfer payments for the fiscal year 2024–25 compared to the previous year, with the majority allocated to healthcare. The province also foresees increased revenue from retail sales tax due to heightened consumer spending and prices.
Nonetheless, the finance minister acknowledged the province’s deficit as the “elephant in the room.”
“After years of escalating costs and financial hardship for residents, it’s crucial to address these issues,” mentioned Mr. Sala during his budget speech. “Some may deem this budget overly ambitious, but it’s precisely because of these challenges that ambitious measures are necessary. We can revamp healthcare, enhance affordability, and work towards fiscal balance within four years,” he added.
Mixed Reviews
The budget has received mixed reviews.
“Despite collecting record revenues from Manitobans, the government still struggles to achieve a balanced budget,” remarked CTF Prairie Director Gage Haubrich in a statement.
“The government is postponing dealing with the debt issue and spending almost $200 million every month on interest payments,” stated MGEU President Kyle Ross.
