The 2025-2026 Manitoba Budget
The Manitoba NDP government, led by Premier Wab Kinew, unveiled its second budget earlier this afternoon, which forecasts a deficit of $794 million if the threat of tariffs by the US subsides. If tariffs occur, $500 million is allotted for a "tariff response contingency," as well as $600 million for a "revenue contingency.”
Early on in his speech, Finance Minister Adrien Sala noted, “Let us be clear, our fight is not with all Americans. It is with one American. We have stood shoulder to shoulder with Americans as allies on the battlefield. Together we have protected peace and defended democracy around the world. We didn’t start this fight. But we are not backing down. We are Building One Manitoba.”
Budget themes planned expenditures include:
Re-Building Health Care
- $770 million in new funding to recruit and retain frontline health care workers who care for Manitobans
- Building the new ER and Mature Women’s Centre at the Victoria Hospital
- Building the new Eriksdale ER
- Building the new Health Care Centre of Excellence in downtown Winnipeg
- Renovating the Children’s Hospital ER
- Building the new CancerCare Manitoba Headquarters
- Building three new personal care homes in Transcona, Lac du Bonnet, and Arborg
- A mobile MRI for the North, traveling between Thompson and The Pas
- $40 million investment in frontline staff to take care of Manitoba seniors
- Funding to protect safe abortion services at Women’s Health Clinic
- Funding to include Plan B in our free Birth Control Program
- A transformative investment in health care for women in menopause and perimenopause
Lowering Costs for Manitobans
- Permanent gas tax relief with a 10% reduction
- Over $2,000 in annual savings by expanding $10-a-day child care to include non-school days
- One-year freeze on your Hydro rates
- $100 increase to Homeowners Affordability Tax Credit, saving the average homeowner up to $1,600 a year
- Increased tax credits for renters and top up for low-income seniors
- Putting a stop to big corporate grocery monopolies that drive up prices
- Renewing the $300 rebate on home security systems
- Continuing the EV rebate program
- More support for farmers and producers with Crown Land lease freezes, lower AgriInsurance rates and more support for young farmers
- $30 million a year in permanent funding for our Universal School Food Program to set every child up for success and save families money
- $12.4 million in increased supports for low-income Manitobans
- One year of free parks entry across the province
Growing our Economy
- $414 million investment in Phase 2 of the North End Water Treatment Plant
- $881 million investment to upgrade Manitoba Hydro infrastructure and keep rates low
- A 4% increase to the highways budget
- $809 million investment in transportation and infrastructure including twinning Highway 1 East, building the Lake St. Martin and Lake Manitoba outlet channels and a new interchange on the Perimeter Highway
- Investing $36.4 million over two years in the Port of Churchill and strengthening our rail lines to the North
- Generating 600 megawatts of wind power in partnership with First Nations and Métis to keep rates low for all Manitobans with a new Indigenous loan guarantee program
- Building a new Gold Mine in northern Manitoba to create good paying jobs
- Reducing the payroll tax, to help Manitoba businesses create jobs and compete in new markets • $10 million for a new Business Security Rebate to prevent thefts and break-ins
- An additional $4.5 million investment in Travel Manitoba to market Manitoba to the world
Healthier Families and Safer Communities
- A new funding model for municipalities and northern affairs communities
- Giving municipalities 4% of gas tax revenue through the new One Manitoba Growth Revenue Fund to build hockey rinks, playgrounds and community centres
- Building 11 new schools over the next three years
- $80 million down payment to purchase three made-in-Canada water bombers to fight forest fires and protect northern and rural communities
- $76 million increase for public safety initiatives across the province to crack down on drug traffickers, strengthen bail reform and keep Manitobans safe
- Hundreds more housing units and a new navigation centre to move people from tents to housing with the supports they need to thrive
A Government that Works for You
- New plastic health card that features a northern lights design chosen by Manitobans
- Buy Canada policy for government contracts to support Manitoban and Canadian businesses and workers
- Strengthening French-language services
- Improving the Manitoba provincial nominee program
- Three cabinet offices in Westman, Southern, and Northern Manitoba to serve you
Protecting Manitobans from Tariffs (contingent upon the US administration undertaking 25% across-the-board tariffs)
- Tax deferrals for Manitoba businesses
- Up to $100 million in targeted supports to help businesses pivot to new markets • Up to $100 million in loans for Manitoba businesses
- Up to $100 million in support for farmers and producers
- Up to $50 million in new funding to post-secondary institutions to support retraining for Manitoba workers
- Up to $10 million more in student aid grants and $25 million more in student loans to help workers train for new jobs
- Up to $100 million for programs and services to support families
Additional Information
According to documents from the Manitoba Department of Finance, Budget 2025 includes a projected revenue increase of $1.719 billion from Budget 2024. Income tax revenues are projected to increase by $446 million from Budget 2024, with a $292 million increase in individual income tax revenue and a $154 million increase in corporation income tax revenue. Expenses in 2025/26 are projected to increase by $1.717 billion overall from Budget 2024, driven by negotiating fair deals with front-line health care workers after they went years without contracts under the previous government, and a record investment in strategic capital projects to strengthen the economy under the threat of tariffs from the new United States (U.S.) administration.
The net debt to GDP ratio in Budget 2025-2026 is predicted to be 36.9%, compared to the 2024-2025 budget which was expected to be 38.5%. The 2024-2025 forecast is 36.1%.