Manitoba tables budget after a week of delays

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Manitoba tables budget after a week of delays

March 19, 2020

After more than a week of procedural delays in the Manitoba Legislature the provincial government tabled their 2020 budget on Thursday March 19, 2020.

Finance Minister Scott Fielding mentioned number of items that had had been previously announced like a $25 per tonne flat fee Green Levy and a reduction in the Provincial Sales Tax to six per cent, both effective July 1st.

“Budget 2020 delivers significant tax reductions which, combined with the 2019 tax cuts, are the largest in Manitoba history. Manitoba will be the only province that has cut its sales tax in recent years and we’ve done it twice,” said Fielding. “This PST rate reduction will ensure that all who pay the Green Levy will benefit through a lower sales tax rate.”

Fielding also noted that the province will contribute an additional $300 million in the rainy day fund by the end of 2020-21.

The emergencies expenditures contingency will be increased to $100 million, about $86m higher than it was in 2016.

$101 million has been earmarked for the Lake Manitoba and Lake St. Martin Outlet Channels Project.

“Supported by strong revenue growth and responsible expenditure controls, we are now one step closer to delivering a balanced budget during the current term of government,” said Fielding.

$6.8 billion will be spent on health-care while public school divisions see $1.3 billion in operating grants.

Budget 2020 highlights:

More than $250 million over four years for the provincial clinical and preventative services plan, which will enable patients to access the health care they need closer to home and shorten wait times at Winnipeg hospitals.
$10 million for cataract and joint replacement surgeries to further shorten surgical wait times for thousands of Manitobans.
$2-million increase for mental health and addiction treatment.
$1.3 billion to public school divisions operating grants.
$160 million for school capital projects including construction of seven new schools.
$2 million to add more than 1,000 licensed early learning and child-care spaces.
Implementing a Green Levy of a flat $25 per tonne, effective July 1,
$101 million for the Lake Manitoba and Lake St. Martin Outlet Channels project and $45 million for climate resiliency projects.
$21.8 million to be held in reserve for the City of Winnipeg’s North End Water Pollution Control Centre, bringing the total provincial contribution to more than $56 million.
$15.8 million to help municipalities outside Winnipeg develop safe and sustainable water and sewage facilities.
$6 million more for provincial police service agreements including funding for 27 additional police officers.
$5 million to fight crime and gang activity.
$1 million to help police to detect and deter drug-impaired driving.
$561,000 for grants to support community projects that deliver services to victims of crime.
Replenishing the rainy day fund.
Increasing the emergency expenditures contingency to $100 million.
$12 5-million increase to highways capital budget to a total of $362.5 million.
Lowering the retail sales tax rate to six per cent, effective July 1
Continuing to index the Basic Personal Amount, saving Manitobans $16.2 million in taxes in the 2020 tax year.
Eliminating all probate fees as of July 1.
Increasing the payroll tax threshold.
$4.8-million increase to the Manitoba Scholarship and Bursary Program
$41 million in interest-free loans available for post-secondary students.
$500,000 toward implementation of the Mineral Development Protocol that will support project-based funding of up to $50,000 each to First Nation communities to support activities related to mineral exploration and development within their territories.