Fiscally Responsible Outcomes and Economic Growth Strategy
2023
Introduction
Budget 2023 invests nearly $2-billion in new funding to provide historic help for Manitobans. These investments will make streets safer, heal the health-care system, make communities stronger and create opportunities ahead for all Manitobans.
Budget 2023: Historic Help for Manitobans reflects the priorities of every Manitoban. The development of this year’s budget was informed by significant public engagement in January and February 2023, with thousands of Manitobans participating in consultations across the province.
This year, 29,934 individuals participated in the pre-budget engagement process, with 15,758 people taking part in telephone town halls, 127 people attending public meetings and more than 10,078 people taking part in online quick polls. The government also received 3,971 responses to the online survey at EngageMB. For more information on Budget 2023 consultations, visit engagemb.ca/budget-2023 .
Manitobans have faced unprecedented challenges over the last three years, challenges that required unprecedented government action. The Manitoba government has steered the province through the COVID-19 pandemic, the economic impacts of the war in Ukraine, supply chain disruptions, inflation and high interest rates. While the uncertainty continues, Manitoba’s economy has proven to be resilient. Manitoba has recovered faster and emerged stronger than ever.
In 2022/23, all provinces across Canada experienced increased tax revenues thanks to the economic rebound coming out of the pandemic. While the Manitoba government did not anticipate the pace of the recovery in the previous year’s budget, in 2022/23 it helped the government address the cost-shock of inflation, pandemic-related health-care backlogs and other challenges for Manitobans.
The Manitoba government invested the growth in personal and corporate tax revenues into two special warrants totalling more than $940-million. These investments helped reduce the cost of living for families and invested in the services Manitobans rely on.
The Manitoba government is continuing with this balanced approach. Budget 2023 invests nearly $2-billion in new funding to provide historic help for Manitobans. These investments will make our streets safer, heal our health-care system, make our communities stronger and create opportunities ahead for all Manitobans.
The government has been outperforming budget projections, lowering the deficit to $704-million in 2021/22 and to a projected deficit of $378-million in the third quarter of 2022/23. Budget 2023 projects a deficit of $363-million, and puts Manitoba on track to balance the budget by 2028/29.
Budget 2023 provides a balanced approach to the challenges the province faces. It provides historic help for Manitobans that will shape the future of the province for generations to come.
Budget 2023 - Historic Help for Manitobans
During increasingly uncertain financial conditions, sound fiscal management will build a stronger and more resilient province. Budget 2023 balances much-needed investments into Manitobans’ priorities with careful, measured approaches to support economic growth.
Budget 2023 is providing historic help to support Manitobans across all areas of family and community life. With economic growth stronger than expected, the Manitoba government is investing every dollar into the priorities of Manitobans.
Historic Help for Manitobans
Budget 2023 implements new and enhanced tax measures to better bring Manitoba’s personal income taxes in line with other provinces. The changes in personal income tax will allow families to keep more of their income and will attract inter-provincial migration to grow the economy.
The new tax measures include:
- increasing the Basic Personal Amount to $15,000 in 2023;
- increasing the personal income tax bracket thresholds to $47,000 and $100,000 for 2024;
- continuing to phase out school taxes by increasing the rebate for residential and farm properties from 37.5 per cent to 50 per cent in 2023; and
- continuing to reduce the Health and Post-Secondary Education Tax Levy in 2024 by increasing thresholds for the fourth consecutive year and committing to the first reduction in the tax rates in 25 years tied to Manitoba’s 2023 fiscal performance.
When these taxation changes are combined with other affordability measures, Manitobans will benefit from more than $1.8-billion in savings between 2022 and 2024.
The reduction of payments charged to Manitoba Hydro will have a favourable impact on electricity rates. Manitoba Hydro’s rate application to the Public Utilities Board is now an increase of only two per cent over each of the next two years, saving Manitoba Hydro and ratepayers $190-million this year and more than $4-billion over the next 20 years.
These changes build on the 2022/23 Family Affordability Package and Carbon Tax Relief Fund payments that return nearly $290-million to Manitobans.
Safer Streets
Government plays a significant role in keeping Manitobans safe from crime. To achieve this, Budget 2023 brings a balanced approach that addresses the root causes of crime while cracking down on violent crime.
Budget 2023 includes funding to implement a $51.8-million Violent Crime Strategy over two years, which will provide support for police services as well as resources and funding for prosecution services to create additional capacity to address crime.
Investments in community safety initiatives, including the Winnipeg Bear Clan Patrol Inc. and Winnipeg’s Downtown Community Safety Partnership, will provide more eyes and ears on the ground to make our communities safer.
Investments in services to address the root causes of crime, including addictions, mental health and community wellness, will also help keep our streets safer.
Budget 2023 is investing more than $50-million in a comprehensive homelessness strategy, which will increase funding for overnight shelters, transitional housing and rent subsidies. The Manitoba government is also funding year two of the Mental Health Five-Year Roadmap with $17.3-million, and provides $9.4-million for 1,000 new addictions treatment spaces. Through these investments, more Manitobans are on the road to recovery than ever before.
Building on the increases to Employment and Income Assistance basic needs rate, increases to Rent Assist benefits for working families and the new Disability Support Program will help low-income Manitobans across the province.
Healing Health Care
Health-care systems across the country and around the world are facing significant challenges, with the pandemic revealing capacity challenges and creating backlogs in diagnostic tests and surgeries. Budget 2023 invests a record $7.9-billion in health care services in Manitoba, $668-million more than last year to heal health care - a 9.2 per cent increase.
Total Health Care Spending Budget Amounts 2021/22 to 2023/24
To continue addressing the backlogs for diagnostic and surgical services, government is investing $130-million through the Diagnostic and Surgical Recovery Task Force to open more capacity with local private and public care providers, and implement safe, out-of-province care options for some procedures.
The government is also investing $200-million through the Health Human Resource Action Plan for programs and incentives to train and retain health-care professionals, while recruiting more from within Manitoba, across Canada and around the world.
Budget 2023 also commits an additional $15.9-million to advance initiatives in the seniors’ strategy and support a full spectrum of community-based services, as well as $55-million to address recommendations from the Stevenson Review to implement staffing and emergency preparedness technology improvements in personal care homes.
The increase in health funding will address the pressures in Pharmacare, extend coverage for insulin pumps and introduce a new hearing aid program for Manitoba&aposs seniors.
Stronger Communities
Strong and vibrant communities improve the quality of life for all Manitobans, while attracting new families, investment and economic growth. They are built by investing in child care, education, infrastructure, recreation, arts and culture, tourism and heritage projects.
This budget is on track to create an additional 2,600 affordable child-care spaces in non-profit centres under the five-year Early Learning and Child Care Agreement across the province and invests $76.1-million to make $10-per-day child care a reality this year.
In 2022/23, the government invested $77-million in K-12 schools to support teacher wages. Budget 2023 makes this funding permanent to support school divisions for ongoing wage pressures. K-12 schools will receive an additional $100-million funding increase, bringing the total investment to $1.7-billion this year.
Low wages in the government funded Community Living disABILITY Services and Children’s disABILITY Services programs have contributed to high turnover and staff burnout in this critically important sector supporting the most vulnerable Manitobans. Budget 2023 provides $81-million to establish an average funded wage of $19 per hour for all disability service workers funded by the government.
The Manitoba government recognizes that building stronger communities requires working with municipal partners. The government is increasing funding support to Manitoba municipalities in the 2023 municipal fiscal year, increasing the operating funding basket by $47-million, while taking steps to modernize the calculation of municipal operating grants to recognize the needs of municipalities facing greater financial challenges over time. This increase, first implemented in 2023, will become a permanent part of the funding in future years.
Along with the operating grants, a one-time increase of $140-million in capital grants for 2022/23 from the January 2023 special warrant for municipal water and wastewater infrastructure and a budgeted increase to municipal infrastructure funding for a total commitment of up to $160.4-million on an ongoing basis.
The Manitoba government will continue to work with Indigenous peoples to implement reconciliation commitments related to shared goals and objectives, including addressing the harms related to residential schools. Budget 2023 will also sustain the Indigenous Reconciliation Initiatives Fund, which is dedicated to advancing truth and reconciliation by partnering with Indigenous groups, communities and governing bodies to implement projects to address the injustices that have been faced by Indigenous peoples.
Budget 2023 also builds on investments in nature and heritage spaces, tourism, arts and culture. The government is investing $100-million for the Arts, Culture and Sport in Community Fund, with $50-million available in 2023/24.
Opportunities Ahead
Rich with resources, a skilled workforce and a diversified economy while also located at the centre of North America’s trade corridors, Manitoba is well placed to build an inclusive economy where all Manitobans can compete, innovate and thrive. In 2022/23, Manitoba has experienced unprecedented economic growth and an influx of skilled workers.
Budget 2023 makes investments to spur economic development opportunities, generate well-paying jobs and strengthen the government’s fiscal resilience, all of which will support Manitobans through challenging times.
With input from the Tax Competitiveness Working Group, the Premier’s Economic Advisory Council on Competitiveness is guiding Manitoba’s work to modernize the tax system, making it more affordable and competitive with neighbouring jurisdictions. In 2023/24, the payroll tax thresholds will increase; ensuring employers with payrolls of less than $2.25-million will no longer pay payroll tax.
A strong economy requires a skilled workforce. Budget 2023 invests more than $65-million in operating
funding for post-secondary institutions, caps university tuition increases at 2.75 per cent and caps the
college tuition increases at $133 per program for Manitoba students. The new Internationally Educated
Professionals
Program will speed up certification so newcomers can have their credentials recognized, helping them secure
employment.
In 2022, the government established a venture capital fund with $50-million in seed funding. This year, Manitoba is adding another $50-million, bringing the government’s total contribution to $100-million to create a much larger venture and growth capital ecosystem for Manitoba businesses.
There are endless opportunities to grow Manitoba’s mining and natural resources sector. Budget 2023 invests to speed up the permitting process, helping to get mines up and running more quickly in Manitoba. Budget 2023 is also continuing the commitment of $10-million over three years in the Manitoba Mineral Development Fund.
Protecting Manitoba’s environment creates conditions for sustainable growth and a greener economy. In Budget 2023, the government will provide grant funding to encourage businesses, industries and institutions to identify pathways to de-carbonization, as well as fund innovative projects to help protect the environment and create a greener Manitoba.
Capital Investments
Infrastructure is the foundation for quality public services, with the health care, education and criminal justice systems dependent on quality capital assets. It is also integral to a thriving economy, with highways, bridges and other capital projects helping to ensure the efficient movement of people and goods throughout the province and around the world.
To strengthen long-term confidence in the Manitoba economy, Budget 2023 builds on the three-year capital plan in Budget 2022, to a five-year plan with historic levels of strategic capital investments.
The capital plan in Budget 2023 increases investments to a record $3-billion in 2023/24, through departments and other reporting entities. Over the next five years, Manitoba will be investing a record $14-billion in the province through various departments and other reporting entities. New projects will be added to the five-year capital plan as future years are budgeted.
Highlights of New Investments in Five Priority Areas
|
Historic Help for Manitobans |
|
|
|
|
|
|
|
|
Safer Streets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Healing Health Care |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stronger Communities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opportunities Ahead |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historic Help for Manitobans
Whether it is filling up a tank of gas, buying groceries or heating a home, the purchases Manitobans make every day are becoming more expensive. As Manitobans continue to grapple with the rising cost of living, Budget 2023 contains new measures to help individuals, families and businesses make ends meet.
Economic factors, such as the Russian invasion of Ukraine, persistent supply chain disruptions, tight labour markets, a robust economic recovery from the COVID-19 pandemic and a weakening Canadian dollar have contributed to decades-high inflation. These global and domestic forces have created upward pressure on prices, increasing the cost of living for households across the country.
Bringing Taxation More in Line with Other Provinces
The Manitoba government remains focused on maintaining a strong, sustainable fiscal foundation that will provide better services to all Manitobans. This includes investing in frontline services and lowering taxes to make life more affordable for Manitobans and more competitive for Manitoba businesses.
Basic Personal Amount
The Basic Personal Amount is a non-refundable tax credit every Manitoba resident is entitled to claim on their income tax return that creates a tax-free zone on which Manitoba income tax is not paid.
Budget 2023 announces the largest ever enhancement to the Basic Personal Amount. The amount will be
increased by $4,145 above the indexed amount, or nearly 40 per cent, from $10,855 to $15,000 in 2023,
with a return to annual indexing in
2024.
At $15,000, Manitoba’s Basic Personal Amount will match the current federal amount.
As shown in the chart, Manitoba will go from having among the lowest basic personal amounts to among the highest.
The total cost of this measure and the savings to Manitoba taxpayers in 2023 is estimated at
$311-million. With the Basic Personal Amount enhancement, the incremental savings compared to 2022 will be up to $524 for
an individual or $1,048 for a two-income
family.
This measure will remove an additional 47,400 low-income taxpayers from the tax rolls in 2023. That is the equivalent of more than 90 per cent of the total population of Brandon no longer paying Manitoba income tax. When combined with increases to the Basic Personal Amount under indexing since 2017, nearly 75,000 low-income Manitobans will no longer be paying Manitoba income tax.
Personal Income Tax Bracket Thresholds in 2024
Manitoba’s personal income taxes are calculated based on three taxable income brackets. Budget 2023 introduces increases to tax thresholds that are over and above the annual indexation increases.
Budget 2023 increases the tax bracket thresholds for the 2024 taxation year to $47,000 and $100,000,
with a return to annual indexing in 2025.
|
Tax Rate |
2023 Taxable Income |
2024 Taxable Income |
|
10.80% |
first $36,842 |
first $47,000 |
|
12.75% |
over $36,842
|
over $47,000
|
|
17.40% |
over $79,625 |
over $100,000 |
These are increases of $10,158 (28 per cent) and $20,375 (26 per cent) compared to the 2023 thresholds and will result in estimated tax savings of $160-million in the 2024 tax year compared to what would hav e occurred under indexing.
With the increase to $47,000, Manitoba’s first tax bracket threshold is projected to rise from third lowest among provinces to fifth lowest in 2024 and move to within $500 of British Columbia and within 10 per cent of British Columbia, New Brunswick, Ontario, Quebec and Saskatchewan.
With the increase to $100,000, Manitoba’s second tax bracket threshold is projected to rise from third-lowest among provinces to fourth-highest in 2024.
Combined, the changes to the Basic Personal Amount and brackets will provide significant tax savings to Manitobans across the income distribution. A Manitoban with taxable income of $30,000 will pay 23 per cent less than based on indexing alone without the Budget 2023 increases.
At $100,000 in taxable income, a Manitoban will save 12 per cent compared to indexing alone without the Budget 2023 increase. Clearly, Budget 2023 measures provide more tax savings to middle- and low-income Manitobans.
Compared to the forecasted Basic Personal Amount and thresholds based on indexing, taxpayers will save up to an additional $1,399 in 2024 with these threshold improvements.
2024 Percentage Reduction in Provincial Income Taxes by Taxable Income Level
|
Taxable Income |
||||
|
|
$30,000 |
$50,000 |
$100,000 |
$150,000 |
|
2024 Savings from Budget 2023 Measures |
$470 |
$633 |
$1,399 |
$1,399 |
|
Per cent Reduction |
23% |
14% |
12% |
7% |
The increases to the tax bracket thresholds will lead to a shift from Manitobans who were in the middle-income bracket of 12.75 per cent now paying tax at 10.8 per cent, and Manitobans who were paying tax at the top rate on their income up to $100,000 will now be paying the middle tax rate of 12.75 per cent on that income.
These increases will provide even greater savings to Manitobans going forward. As indexing continues in future years, the Basic Personal Amount and income tax bracket thresholds will increase by a greater amount each year than they would have without these large bumps in Budget 2023.
School Tax Rebates
The elimination of school taxes will become the largest tax reduction in Manitoba history, as the phase-out moves ahead and rebate percentages increase.
In Budget 2021, the Manitoba government committed to a 10-year phase-out of education property taxes in Manitoba with the introduction of the School Tax Rebate. Budget 2022 increased the rebate for residential and farm properties from 25 per cent in 2021 to 37.5 per cent in 2022.
Budget 2023 includes a pr eviously-committed rebate increase for residential and farm properties from 37.5 per cent in 2022 to 50 per cent in 2023, while maintaining the rebate for other properties at 10 per cent.
Total rebates are equal to $2
46.5-million in 2021, $350.4-million in 2022 and $4
53.2-million in 2023 - a combined value of more than $1
-billion over the three
years.
|
Property Type |
Total School Tax Rebates ($millions) |
||
|
2021 |
2022 |
2023 |
|
|
Residential |
179.3 |
270 |
358.6 |
|
Farm |
27.4 |
40.6 |
54.8 |
|
Other |
39.8 |
39.8 |
39.8 |
|
TOTAL |
246.5 |
350.4 |
453.2 |
As a result of the increases, school tax rebates for homeowners will increase from an average of $387 in 2021 to $581 in 2022 and to $774 in 2023.
For residential properties, net school tax (per cent tax paid) will decrease to 36 per cent in 2023 from 71 per cent before the introduction of the School Tax Rebate as the value of the education property tax credit advance and rebate savings increase to $462-million in 2023 from $210-million in 2020.
All Residentail Properties
On farm properties, the savings are more pronounced. The percentage of net school tax (per cent tax paid) will decrease to 28 per cent in 2023 from 55 per cent in 2020 as the value of rebate savings increase to $79-million in 2023 from $49-million in 2020.
All Farm Properties
Safer Streets
Manitoba needs a balanced approach that addresses the root causes of crime while also getting tough on violent crime and violent criminals so Manitobans feel safe in their homes, streets and communities.
Public Safety
Manitobans are concerned about high crime rates and violence in their communities. Budget 2023 addresses public safety by cracking down on crime while concurrently addressing the factors contributing to crime including homelessness, addiction and mental health issues.
To target violent crime, the Manitoba government is investing $51.8-million over two years to a Violent
Crime Strategy, with $34.6-million allocated for 2023/24.
To further enhance policing and public safety in Manitoba, Budget 2023 includes:
- $3.2-million to create a High-Risk Apprehension Team and to strengthen intensive bail and supervision for serious, violent offenders. This new unit will use strategic criminal intelligence and risk assessment tools to target the most violent offenders and those who have warrants and present the highest risk to re-offend or breach court conditions;
- $3.6-million for Winnipeg’s Downtown Community Safety Partnership to support a safer, more inviting downtown Winnipeg for businesses and residents;
- an additional $2.5-million for critical equipment, technology upgrades and expanded training opportunities for Manitoba’s conservation officers;
- $780,000 to Toba Centre to expand services responding to child abuse;
- an additional $650,000 to fund a central communication and dispatch system for the province’s Conservation Officer Service;
- an additional $236,000 for the DNA Biology Casework Analysis Agreement between the federal government and Manitoba to share the actual costs of biology casework analysis arising from criminal investigations in the province;
- $100,000 to support ongoing operations of the Winnipeg Bear Clan Patrol Inc.; and
- $1.4-million to ensure the Manitoba Prosecution Service has enough capacity to address violent crime related to serious firearms offences.
The RCMP provides all policing services in the province with the exception of some municipalities and Indigenous communities policed by independent police services. Budget 2023 increases funding to support the RCMP Provincial Police Service Agreement by $10.8-million.
Homelessness Strategy
Budget 2023 is investing more than $50-million in a comprehensive homelessness strategy which will
increase funding for overnight shelters, transitional housing and rent subsidies.
Combined with continued investments into mental health and addictions programs, especially for populations that experience homelessness due to mental health and addiction, many will be on the road to counselling, detox and long-term treatment.
Family Violence Prevention
Supporting family violence prevention initiatives ensures quality supports and programming is available and helps expand programs to serve more members of the community.
Budget 2023 includes $7.1-million in funding for the Family Violence Prevention Program, including an
annualized funding increase of $1.6-million to 10 provincial shelters to implement year two of a new
funding model that aims to improve operations and better protect vulnerable
Manitobans.
In addition, Manitoba Status of Women’s Family Violence Prevention program will provide annualized funding increases of:
- $2-million for nine women’s resource centres;
- $890,000 for four residential second stage programming agencies; and
- $439,000 for seven specialized programs.
The Manitoba government has also committed funding for a program led by Ma Mawi Wi Chi Itata to engage men and boys to help reduce sexual exploitation and sex trafficking.
Mental Health and Community Wellness
Manitoba continues to see the effects of the COVID-19 pandemic on the health and well-being of Manitobans, including an unprecedented demand on mental health and addictions services over the last two years.
To work towards addressing these issues for all Manitobans, Manitoba Mental Health and Community Wellness launched A Pathway to Mental Health and Community Wellness: A Roadmap for Manitoba in February 2022. The roadmap outlines the priorities and action items that will enhance the mental health, addictions, wellness and health promotion system in Manitoba.
Budget 2023 continues government’s investments in mental health and addictions core services, with a focus on helping some of the most vulnerable Manitobans affected by addictions and mental illness move forward on their recovery journey. This will include:
-
$17.3-million for year two commitments under the five-year roadmap for mental health, including:
- providing $1-million to add crisis stabilization unit beds and expand telepsychiatry services to ensure Manitobans living in rural and remote communities are able to access timely and efficient psychiatric support;
- investing $600,000 for flexible-length community residential withdrawal management beds in Brandon to allow patients the necessary time to withdraw from dangerous drugs and be connected to longer term treatment options; and
- investing $448,000 to provide ongoing funding for mobile withdrawal management services from Klinic Community Health Centre to ensure addictions services are accessible as close to home as possible; and
- $9.4-million for 1,000 new treatment spaces for providers of substance use and addictions treatment services across Manitoba.
Government will also invest in initiatives focused on children and youth, including:
- an investment of $1.5-million in child and youth mental health services to improve access and reduce wait times;
- $1.3-million in funding for the Child Nutrition Council of Manitoba to ensure schools throughout the province will be able to deliver school nourishment programs that encourage school attendance, support learning and promote health and wellness; and
- a $345,000-investment to develop a provincial suicide prevention strategy in collaboration with Indigenous communities, focusing on at-risk youth and prevention programming for Indigenous children and youth.
Healing Health Care
Budget 2023 continues to address challenges arising from the pandemic by investing in a health human resource action plan and committing funds to address surgical and diagnostic wait lists.
Healing our health system requires historic investments in human resources, ongoing investments in health-care infrastructure and changing the structure of the system as a whole. These efforts to strengthen health care and reduce surgical and diagnostic backlogs will ensure Manitobans have timely access to the care they need.
The Manitoba government strives to provide consistent and accessible health care, despite the challenges of a national and international shortage of trained health care professionals. In Budget 2023, the Manitoba government continues to invest in increased health human resource capacity, address surgical diagnostic backlogs and modernize health care.
|
Investments into Healthcare |
|||||
|
Millions of Dollars |
Budget 2023 |
Budget 2022 |
Variance |
||
|
$ |
% |
||||
|
Health |
7,133 |
6,664 |
469 |
7.0% |
|
|
Mental Health and Community Wellness |
439 |
412 |
27 |
6.6% |
|
|
Seniors and Long-Term Care |
93 |
54 |
39 |
72.2% |
|
|
Enabling Appropriations: |
|||||
|
Surgical and Diagnostic Backlog |
130 |
120 |
10 |
8.3% |
|
|
Health Human Resource Action Plan |
123 |
- |
123 |
n/a |
|
|
7,918 |
7,250 |
668 |
9.2% |
||
Health Human Resource Action Plan
Health-care systems across the country are facing significant health human resources challenges as a result of the COVID-19 pandemic, with high demand for health care professionals around the globe.
The Health Human Resource Action Plan is a $200-million strategy to recruit, train and retain health-care providers across Manitoba. Manitoba is investing in programs and incentives to:
- retain existing health-care providers;
- recruit new health-care providers through incentive and training initiatives; and
- encourage the health-care providers of the future to enter training and educational programs that will equip them to support care for Manitobans well into the future.
New initiatives will build upon ongoing strategies and programs to improve health care for all Manitobans. It will support the human resource needs of the health-care sector by retaining valued staff and adding 2,000 new health-care providers to the provincial health-care system. All action items and incentives are rolling out in a phased approach.
In the first phase of the action plan, several targeted initiatives are being introduced within the system. This includes incentive measures such as:
- a weekend wage premium for nurses;
- a one-time $500 wellness bonus for health care employees;
- incentive for nurses working in full-time positions;
- the payment of 2023 and 2024 licensing fees for public sector nurses;
- incentives for nurses returning to practice; and
- a remote location incentive for nurses.
It also includes workforce supports, such as:
- a provincial float pool for nurses; and
- the introduction of the Virtual Emergency Care and Transfer Resource Service to provide rural and northern physicians with improved access to specialist consultation for clinical advice and transfer of patients.
More targeted initiatives will be introduced in subsequent phases of the action plan.
Beyond the action plan, the Manitoba government is working with health system stakeholders in developing innovative approaches to recruitment and retention. Shared Health is currently building a centre of expertise for recruitment. The team is currently supporting the international recruitment mission to the Philippines being led by the Government of Manitoba.
Other significant measures include supporting the expansion of health-care provider training programs offered in the universities and assisting international medical and nursing graduates with their transition to practicing in Manitoba.
Addressing Diagnostic and Surgical Backlogs
In Budget 2022, the Manitoba government created the Diagnostic and Surgical Recovery Task Force to address surgical and diagnostic waitlists. In Budget 2023, $130-million is committed to continue the program.
The task force is finding innovative solutions to address backlogs in health care resulting from the COVID-19 pandemic by building capacity in Manitoba by developing request for supply arrangements with private and public care providers in the province, as well as implementing safe, out-of-province care options for some procedures.
On Sept. 26, 2022, the Minister of Health signed the Declaration to Eliminate all Forms of Indigenous-Specific Racism in the health system, along with Manitoba Keewatinowi Okimakanak Inc. (MKO), Keewatinohk Inniniw Minoayawin Inc. (KIM), the Northern Regional Health Authority (NRHA) and others. This declaration is part of ongoing efforts to end racism in all parts of the health system.
As first announced in Budget 2021, Manitoba is making historic capital investments in building, expanding and renovating health care facilities across the province to support health transformation.
Budget 2023 provides a total multi-year capital investment of $1.2-billion for the expansion, improvement or creation of new hospital developments in Manitoba as part of the province’s Clinical and Preventive Services Plan. This includes:
- $795-million for new hospitals in Portage la Prairie and Neepawa;
- $123-million to enhance health services in Brandon, including an addition and renovations at the Brandon Regional Health Centre and the expansion and renovation of the Western Manitoba Cancer Centre;
- $106-million for the expansion and redevelopment of several sites including Virden, Souris, Killarney, Shoal Lake, Arborg and Beausejour; $115-million for projects in northern Manitoba;
- $165-million for the expansions of the Bethesda Regional Health Centre, the Boundary Trails Health Centre and the Selkirk Regional Health Centre;
- $33-million for renovations to Ashern’s Lakeshore General Hospital; and
- $7.6-million for new endoscopy and chemotherapy spaces at Dauphin Regional Health Centre.
All of these projects are currently underway, with some at the design stage and others already in construction. In addition, funding is allocated for a number of projects in Winnipeg hospitals, including:
- renovations to the adult emergency department, emergency psychiatry and additional areas of Health Sciences Centre;
- the redevelopment of the emergency department at St. Boniface General hospital, which is currently underway;
- renovations at CancerCare Manitoba to expand capacity and strengthen services; and
- We are also joining the Health Sciences Centre Foundation's Operation Excellence, a $100-million redevelopment of the HSC campus increasing capacity for services.
Funding is also being provided over five years to continue capital investment in the following:
- $350-million for upgrades to and the replacement of building infrastructure and medical equipment such as diagnostic equipment, roof replacements and heating/cooling and electrical services;
- $280-million for upgrades to and the installation of fire protection systems in personal care homes;
- $277-million for upgrades to and the development of information and communications technology;
- more than $95-million for the renovations or new construction of facilities to accommodate regulations for the mixing, storage and distribution of pharmaceutical drugs; and
- more than $17-million in capital investment for the renovation or new construction of ambulance stations in eight locations throughout the province.
This year’s budget also includes a $504-million investment into health system operations, including a
$120-million infusion to the Pharmacare program.
As part of this investment, Manitoba is extending coverage for insulin pumps.
An additional $42-million will be invested to maintain pandemic readiness and a quick response as
required.
Seniors and Long-Term Care
In 2022, the Manitoba government launched extensive, province-wide public consultations to help inform a renewed provincial seniors’ strategy. More than 10,000 Manitobans were engaged through surveys, focus groups, interviews, community engagement networks and a minister’s tour of the province.
Manitoba’s seniors’ strategy, built with the help of these Manitobans, provides a guide to address the challenges faced by seniors and caregivers. Seven areas of focus have been identified and strategic initiatives outlined in the strategy will guide the province’s work with partners to bring the strategy’s vision to life.
Budget 2023 commits an additional $15.9-million to advance initiatives in the seniors’ strategy. These
actions will include support for a full spectrum of community-based services including social and
recreation services, and wellness and prevention. Families and unpaid caregivers will be recognized and
supported in the critical role they play helping Manitobans to age in
place.
Government also recognizes the important role personal care homes play in Manitoba communities. Significant progress has been made in implementing the 17 recommendations of the Stevenson Review, conducted in 2021.
More than $55-million has been committed to date to address resident safety, pandemic preparedness and direct care staffing gaps. Ongoing funding and oversight is being provided by Manitoba Seniors and Long-Term Care to ensure changes to personal care homes are fully implemented and sustained over the coming years.
Stronger Communities
Growing a stronger Manitoba starts with communities that are vibrant and thriving - with the services, businesses, infrastructure and jobs to attract families, investment and greater growth.
Strong communities also need to be livable and lively places with sporting, cultural and heritage venues and recreational destinations made all the better with historic investments province-wide.
Early Learning and Child Care
Manitoba is working towards expanding and strengthening the early learning and child-care system throughout the province. This includes significant investments in workforce retention and recruitment and increasing the number of funded licensed spaces. The government is also reducing parent fees to make early learning and child care more affordable and accessible for all Manitobans.
Budget 2023 makes a number of investments in early learning and child care, including:
- investing $76.1-million to reduce regulated parent fees to $10 per day, well in advance of the target date of Mar. 31, 2026; and
- launching a multi-year training expansion plan for the early learning and child-care workforce, including early childhood educators and child-care assistants, in partnership with post-secondary institutions.
Disability Services
Budget 2023 also includes nearly $104-million in new funding for Community Living disABILITY Services
and Children’s disABILITY Services, for a total commitment of $640-million annually towards services for
the disability community.
This investment represents a 19 per cent increase from the previous year and is the largest single investment in Community Living disABILITY Services since the program’s inception.
The $104-million total increase includes:
- $79.7-million earmarked for increasing the funded wage rate from $15.11 per hour to $19 per hour for frontline residential, respite and day service workers providing Community Living disABILITY Services;
- $2-million earmarked for increasing the funded wage to $19 per hour for front-line workers providing Children’s disABILITY Services; and
- $21.4-million to expand the capacity of the Community Living disABILITY Services program to support new entrants.
Education
Manitoba’s goal is to ensure an equitable and effective provincial education system where students receive a high-quality education.
For the 2023/24 school year, Manitoba is investing an increase of $100-million in K to 12 education
, including:
- a $63-million increase in operating support, including an additional $20-million to address cost pressures, $5-million for special needs and increases in other existing grants;
- a $24-million increase to the Property Tax Offset Grant;
- an $8-million increase in capital support payments; and
- an additional $5-million for independent schools.
The Manitoba government is investing another $106-million to make one-time funding provided to school
divisions last year permanent.
This includes $22-million to support student presence and engagement to facilitate the implementation of
Safe and Caring Schools, the new policy directive and action plan for enhancing student presence and
engagement.
Manitoba is also investing $268.5-million in capital expenditures under the commitment to build 20 new
schools, and to support renovation and additional projects in existing schools.
To date, the province has 14 out of 20 schools either completed, under construction or in design.
The province is moving forward with the implementation of Manitoba’s K to 12 Education Action Plan, which sets out the path for responding to the recommendations from the Manitoba Commission on Kindergarten to Grade 12 Education.
Budget 2023 includes:
- $3.8-million in additional funding for the enhancement of French as a second language and French immersion programs, at all levels of education
- $1.4-million to support the implementation of a provincial Student Information System to integrate system-wide information for the K-12 education sector; and
- $1.4-million to develop a Teacher Regulatory Framework, including a teacher registry and an independent body to improve accountability and transparency related to educator misconduct in K-12 schools.
Budget 2023 includes funding to support the implementation of the Aboriginal Languages Strategy and Mamàhtawisiwin: The Wonder We are Born With, Manitoba’s Indigenous Inclusion Policy Framework.
This year, the province will invest $2.2-million to support the Elders and Knowledge Keepers in Schools
Initiative.
This initiative supports students, educators and families in learning First Nations, Métis and Inuit
histories, languages and cultures, traditional values and knowledge systems, and contemporary lifestyles.
The budget also includes the provision of $300,000 to increase the number of qualified Indigenous
translators in Manitoba as part of a multi-year
commitment.
Social Services and Housing
Manitoba families need safe, wrap-around supports to improve the overall quality of life for communities across Manitoba and make a real difference for thousands of people each year.
This year, more than $13.9-million in funding will be provided to Child and Family Services Authorities
to administer to their mandated
agencies.
The Manitoba government will also continue to support youth transitioning out of care by continuing the Supporting Young Adults Grant, which expanded the eligibility criteria for Child and Family Services (CFS) supports provided to young adults who would otherwise have been ineligible for these supports from their child and family service agencies.
The Manitoba government continues to support the housing needs of vulnerable Manitobans, including those at risk of and experiencing homelessness.
Budget 2023 includes $32.3-million in funding to implement the province’s second three-year action plan
as part of the National Housing Strategy.
Funding allocated under the action plan will be used to:
- construct new affordable rental housing;
- repair existing community housing stock;
- provide operating subsidies for community housing units; and
- provide affordability support for low-income renters in the form of rent supplements, shelter benefits and other subsidized housing.
Additional provincial funding of $17.9-million is provided as part of the Homelessness Strategy towards increasing new affordable rental housing units. Other investments in housing will include:
- annualized funding to support the North End Women’s Centre’s and the West Central Women’s Resource Centre’s transitional housing programs; and
- providing $1.5-million in annualized funding for Velma’s House, a safe space for women, where they can receive services, supports and a place to sleep.
Strengthening Municipal Partnerships
The Government of Manitoba continues to address the growing financial challenges faced by all municipalities in the province.
In 2023, the Manitoba government will provide municipalities and Northern Affairs communities with more
than $217-million in annual operating funding, an increase of 28 per cent from Budget
2022.
At the same time, steps are being taken to modernize the calculation of municipal operating grants to recognize:
- the service needs of smaller municipalities and northern communities through a new base grant of $25,000 for communities with a population of 5,000 or less;
- a per capita grant calculation for all municipalities; and
- specific needs-based funding that individual municipalities currently receive.
In 2023, all municipalities across Manitoba will receive more funding than in previous years, resulting in unconditional funding of $137.9-million for the City of Winnipeg, and $78.8-million for all other municipalities and Northern Affairs Communities, which is more in line with Manitoba’s population levels and regional distribution.
Every municipality will receive a minimum increase of more than 24 per cent compared to 2022, and most will receive a higher increase based on the new model that considers size, population and essential municipal service needs, as well as one-time transit support funding that will be distributed to the City of Winnipeg (and other municipalities with transit systems) in 2023/24.
To continue to improve the municipal operating grant framework in 2023, Manitoba Municipal Relations will work with municipal stakeholders, including the Association of Manitoba Municipalities, the Association of Manitoba Bilingual Municipalities and the City of Winnipeg, to establish a review framework to inform future changes and improvements to Manitoba’s municipal operating funding framework.
The development of this framework will balance existing municipal financial need with municipal capacity to generate revenue. It will also explore the development of a funding escalator to help municipalities in their long-term fiscal planning.
Additional funding increases to support communities in 2023 includes an increase of $471,000 to support United Way Winnipeg’s Community Assistance Program, which builds community capacity by providing opportunities for local communities to raise and invest funds into programs that benefit the community.
The Office of the Fire Commissioner supports local authorities in the delivery of sustainable fire and rescue services for Manitobans, as well as emergency and disaster response activities in communities across the province. Budget 2023 provides additional staff to enhance effective and efficient coordination of core emergency response programs.
Capital funding for core infrastructure helps build stronger communities across Manitoba and supports economic stability and growth.
Recognizing the importance of providing long-term, stable and predictable funding to municipalities, the Government of Manitoba continues to make significant investments in municipal infrastructure.
Budget 2023 provides a further 17 per cent increase to municipal infrastructure funding for a total
commitment of up to $160.4-million on an on-going basis, to support water and wastewater projects, waste
management facilities, roads and bridges, public transit, recreation and other capital priorities.
This funding is in addition to $140-million in one-time capital investments in water and wastewater projects through a special warrant in January 2023, and $4-million in funding for projects through the Manitoba Water Services Board.
Budget 2023 includes an increase of $54.1-million to support cost-shared strategic infrastructure
projects under the Investing in Canada Infrastructure Program.
Supported projects may include initiatives under public transit, green infrastructure, community
infrastructure, rural and northern infrastructure and COVID-19 resilience.
Government is also supporting the establishment of
the Capital Planning Region, which is mandated to adopt a regional plan that supports robust healthy
ecosystems and enhancing resilience to climate change. The plan will contain policies to support integrated
watershed management planning, building a natural assets network, regional flood and drought resiliency, and
policies to support a low carbon capital region economy.
Budget 2023 allocates up to $13.4-million of additional transit funding to be distributed to Winnipeg,
Brandon, Selkirk, Flin Flon, and Thompson to ensure the transit operations of five communities are
supported.
This commitment builds on Manitoba’s collaboration with the Government of Canada in 2022 to provide $20.7-million in funding to assist Manitoba municipalities in addressing transit operating shortfalls related to reduced ridership caused by the COVID-19 pandemic.
Over the last ten years, the Manitoba government has invested in water and wastewater infrastructure for
northern Manitoba communities and has taken steps to address several long-term boil water advisories.
Budget 2023 includes $1.5-million in new funding focused on operator training and certification to
provide safe drinking water in Northern Affairs communities in the north through significant investments
in human resources, training and succession planning.
Protecting the Environment, Climate and Parks
Manitoba’s natural environment is one of its greatest assets and is as diverse as the province’s economy and population. Protecting Manitoba’s environment is essential for ensuring communities remain healthy and create the conditions to sustainably grow the economy and create new jobs.
Manitoba’s Climate and Green Plan continues to guide priorities and investments to help protect the environment and reduce emissions while advancing economic opportunities and innovation for Manitoba.
Carbon Emission Reduction
Budget 2023 is strengthening investments to continue work to reduce carbon emissions and prevent pollution. This includes:
- increasing strategic investments in initiatives that advance priorities of environmental sustainability;
- providing grant funding to help organizations that have a good track record of supporting sustainability measures;
- introducing new programs to further advance the Climate and Green Plan objectives with emphasis on stimulating economic activity and reducing reliance on imported fossil fuel energy; and
- providing grants under the Conservation and Climate Fund for innovative projects that work to help protect the environment in 2023/24.
As Manitoba remains a key transportation hub in North America and many Manitobans rely on their personal vehicles in their daily lives, creating green transportation solutions that work for Manitobans and industry is a key priority for government.
Budget 2023 sets out new green investments for the successful Efficient Trucking Program, cost-shared with the federal government under the Low Carbon Economy Fund. The grants aim to encourage heavy-duty vehicle operators in the province to install fuel saving upgrades to their trucks and trailers. Manitoba is also working closely with transportation stakeholders and will be advancing developments to assist in a green transition.
Budget 2023 includes $170,000 for Climate West, a non-profit organization that serves as a central hub
for climate data and services in Manitoba, Saskatchewan and Alberta.
Protecting the Natural Environment
Work also continues to protect the natural environment and human health from harmful contaminants, including cleaning up orphaned and abandoned mines and contaminated sites, diverting waste from landfills and having strong regulatory controls to prevent pollution and reduce its impact to soil, land, water and air.
Manitoba will provide $8.7-million to support recycling, composting and waste diversion initiatives
across the province through the Waste Reduction and Recycling Support program.
This program helps divert more than 188,250 tonnes of waste from Manitoba landfills annually. In 2021,
composting facilities receiving this funding diverted more than 82,000 tonnes of organic material from
landfills.
Budget 2023 continues to build on the 2022 investment of $50.7-million over five years to support the
implementation of an action plan to accelerate the clean-up of Manitoba’s orphaned and abandoned mines.
Annual work continues to make these sites safer for the public, reduce damage to the environment, and
decrease Manitoba’s environmental liability.
Manitoba remains committed to advancing critical environmental goals including protecting the health of Lake Winnipeg. In 2022, Manitoba, the federal government, and the City of Winnipeg announced a joint investment of more than $550-million for the second phase of upgrades to the Winnipeg North End Water Pollution Control Centre. This includes a $167-million investment from Manitoba to help reduce pollutants from entering Manitoba waterways and protect Lake Winnipeg for future generations.
Manitoba is introducing a new approach to water power licensing in Manitoba that is more efficient, addresses the ongoing environmental concerns associated with legacy developments and advances reconciliation.
Maximize the Value of Parks and Trails
Manitoba’s 92 provincial parks and network of trails are treasured by Manitobans and promote positive health, social, environmental and economic outcomes. In addition to recreational and educational opportunities, Manitoba’s parks help preserve natural spaces and habitats and conserve areas of geological, cultural and ecological significance such as grasslands, boreal forest and wetlands.
Parks are also a strong economic driver in the province through tourism that supports local businesses and creates jobs.
Budget 2023 will maximize the conservation and recreation value of these natural resources, ensuring all Manitobans are able to benefit from these unparalleled natural spaces. This includes:
$10-million to support the new parks capital plan and operating requirements;
- investments to restore park infrastructure damaged in the 2022 flooding, ensuring Manitoba’s parks are prepared for a changing climate;
- a new, modern reservation system that will be in-place for the 2023 camping season to enhance the visitor experience; and
- beginning this year, Manitoba’s new Trails Strategy and Action Plan to guide investments to enhance trail infrastructure and promote Manitoba’s world-class trails.
Securing Manitoba’s Environmental Future
Manitoba recently launched the new Water Management Strategy to guide future actions, decisions and investments to protect the province’s water resources and ecosystems and sustainably grow the economy and local communities.
Budget 2023 will make new investments of $1.6-million to advance the implementation of the Water
Management Strategy and ensure a long-term approach to managing water resources in partnership with
stakeholders and communities.
These investments will enhance water quality monitoring, drinking water safety, watershed planning and
programming, as well as critical water and wastewater development and projects.
Manitoba will continue to implement the 2 Billion Trees Program.
Other Initiatives
Budget 2023 incudes $101-million for work on the Lake St. Martin Outlet Channel to enhance flood
protection for First Nations, Indigenous communities and their neighbours around Lake Manitoba and Lake
St. Martin, while helping strengthen Manitoba’s existing network of flood mitigation
infrastructure
.
The Manitoba government has also provided funding towards the development of forestry initiatives and for activities focused on the sustainability of commercial fisheries. This work is ongoing and includes:
- $675,000 to the International Institute of Sustainable Development to help advance eco-certification of Manitoba’s commercial fisheries; and
- $125,000 for two forestry related projects by FPInnovations, a not-for-profit research and development organization that specializes in the creation of solutions to accelerate the growth of the Canadian forest sector.
To support early detection of chronic wasting disease and respond to identified cases, Budget 2023
provides an additional $880,000 to increase the capacity of Manitoba’s chronic wasting disease mandatory
sample program
to 6,000 samples per year and reduce the turnaround time of test reports to mitigate human and animal health
risks.
Manitoba continues to manage Dutch elm disease by providing grant funding to 38 partner communities to support the protection of their urban forest canopies, reducing the spread of Dutch elm disease, and building capacity to deal with invasive species.
To offset the effects of inflation, Budget 2023 increases available grant funding to $1.2-million, a
20 per cent increase to reduce the loss of elms to Dutch elm disease, maintain healthy urban forests and
provide technical and educational support to communities and the public, while building local capacity.
Advancing Reconciliation
Advancing Truth and Reconciliation is crucial to ensure Manitoba addresses historical wounds and works with Indigenous communities and nations to build a better province for all. The Manitoba government continues to advance reconciliation through the co-development of strategies and best practices with Indigenous and non-Indigenous partners.
The Manitoba government has committed funds to support the Manitoba MMIWG2S+ Partnership Implementation
Plan, led by Ma Mawi Wi Chi Itata. This project will create and implement a five-year plan
to address violence against Indigenous women, girls and 2SLGBTQQIA+ people. The plan will be a
community-led, made-in-Manitoba approach that is province-wide, measurable, and accountable.
The first year of the project, which is being funded by the Manitoba government, will create the governance and organizational structures necessary to develop and implement the plan. This will include the creation of an Indigenous Matriarchal Governing body to guide the plan and its implementation.
Arts and Culture
Participating in arts, culture, heritage and sport activities enhances one’s quality of life. Not only do these activities contribute to enriched perspectives and communities, but they are also important for physical, mental and spiritual health.
Budget 2022 committed to an investment of $100-million for the Arts, Culture and Sport in Community Fund. The fund supports these sectors to enhance opportunities for Manitobans to access quality programming and facilities in their own community. Funding is distributed for large capital projects, small capital projects and special initiatives and community celebrations.
The Manitoba government is accelerating its support for the Arts, Culture and Sport In Community Fund,
expanding a planned $34-million investment by $16-million to $50-million, and investing a further
$50-million in Budget 2023 for a total of $100-million over two years.
This will enable the many Manitobans who enjoy and celebrate the province’s rich culture to benefit from
this enhanced support for capital projects and programming related to arts, culture, and sports initiatives.
Public libraries are important institutions in Manitoba’s communities, and
Budget 2023 builds on previous investments in public libraries by providing a further $277,000 to ensure
all library systems receive at least the same level of provincial funding in 2023 as they did in
2022.
Budget 2023 will maintain funding of $250,000 to prioritize the welfare, safety and rights of every
Manitoban taking part in
sports.
Opportunities Ahead
Manitoba’s economic growth strategy has been fundamental in improving the province’s competitive position, removing impediments to doing business and creating an environment that increases household and business income.
At the core of Manitoba’s economic growth plan is improving the province’s economic competitiveness as a preferred destination to work, live and invest in Canada. A sustainable, green and growing economy will be achieved through a multi-faceted approach.
Budget 2023 will support Manitoba’s economic development with $24.1-million in funding through the Industry Partnerships Program, a nearly nine per cent increase over 2022/23 funding levels. The work of Manitoba and its partners will be supported through a new data and information sharing framework to enable collaboration and quick action on economic development opportunities.
In 2023, Manitoba will release an Opportunities for Growth Action Plan, consisting of a series of short-term, strategic commitments to help Manitoba capitalize on emerging economic growth opportunities, address workforce and skills shortage and invest in critical business infrastructure and supports. Key commitments include:
- launching Manitoba’s first Life Sciences Strategy;
- investing in a virtual production training studio in Manitoba, StudioLab XR, the first of its kind in the prairies;
- expanding the use of the new Invest Manitoba brand to promote Manitoba as a key global destination for trade and investment;
- capitalizing on Manitoba’s green energy advantage to attract new business investment; and
- implementing key findings from the Premier’s Economic Advisory Council on Competitiveness to make Manitoba a preferred business destination.
Venture Capital
Access to capital is critical for the development and expansion of Manitoba businesses. In February 2021, after a review of successful venture capital programs in other provinces, the Economic Development Board recommended the creation of an independent, professionally managed fund. The fund would invest in several independently managed funds that will leverage the government capital with private sector capital, increasing the amounts available to be invested in Manitoba companies.
In 2022, the new Venture Capital Fund was established with an initial contribution of $50-million. In 2023, this investment is doubled by adding $50-million, bringing the total contribution to $100-million. The fund will create a much larger venture and growth capital ecosystem for Manitoba businesses that will lead to the creation of entrepreneur-led businesses that will fuel provincewide economic growth to support the economies in rural, urban and Northern Manitoba.
To improve access to financing, investments are also being made to support the development of a vibrant venture capital system in Manitoba, including:
- re-opening Manitoba’s Communities Economic Development Fund’s Business Loan Program in 2023 to support northern economic development; and
- renewing and expanding a funding agreement with Futurpreneur, which offers financing, mentorship and support to enterprising young Manitobans, including Black, Indigenous and People of Colour (BIPOC) to foster and inspire the next generation of young aspiring entrepreneurs.
Economic Development Loans
In 2023/24, Manitoba Economic Development, Investment and Trade will invest more than $35-million in
loans and guarantees, an increase of $27-million from 2022/23.
This will include $15-million for the Community Economic Development Fund and $20-million to support economic development and investment attraction. The funding will incent private sector investment in enterprises that can demonstrate significant, sustainable growth and job creation.
Economic Reconciliation
Engagement with Indigenous communities continues to advance economic reconciliation and build a more inclusive forest sector. As a first step, five memorandums of understanding with Indigenous communities were signed in 2022 to create two-year pilot revenue sharing agreements with Indigenous communities affected by forestry operations for timber dues collected by the province.
Budget 2023 will sustain the Indigenous Reconciliation Initiatives Fund, which is dedicated to advancing
truth and reconciliation by partnering with Indigenous groups, communities and governing bodies to
implement projects to address the injustices faced by Indigenous
peoples.
To further economic reconciliation, the Manitoba government is also:
- developing a new $15-million fund to support Indigenous economic development opportunities related to the Lake Manitoba and Lake St. Martin Outlet Channels Project, which will be used to support economic development opportunities for the 39 Indigenous groups related to the outlet channels, and reconciliation in alignment with the principles outlined in The Path to Reconciliation Act;
- collaborating with the Assembly of Manitoba Chiefs to offer non-traditional lending options through the First Peoples Economic Growth Fund to support Indigenous economic opportunities and enhance access to finance; and
- working with the Manitoba Métis Federation to provide a sustainable mechanism offering access to capital for Métis entrepreneurs.
Trade
With trade corridors in every direction and North America’s largest tri-modal inland port and foreign trade zone, CentrePort Canada, Manitoba is in a unique position to compete globally. Over the past decade, Manitoba’s international merchandise exports have increased by 80 per cent.
Through a federal-provincial partnership, Manitoba and Canada are investing a combined $147.6-million in the Hudson Bay rail line. This, in addition to guaranteeing continued service to remote northern communities, will increase investment attraction to the Port of Churchill as Manitoba leads the development of a northern trade and transportation corridor that will connect Western Canada to Europe.
Agricultural Investments
The Manitoba government is supporting Manitoba agricultural producers and the competitiveness of the province’s agricultural sector, including:
- investing $221-million in Manitoba’s agriculture industry over the next five years through the federal-provincial Sustainable Canadian Agriculture Partnership, with the federal government providing 60 per cent of the funding and Manitoba providing 40 per cent to ensure sustainable development of the agri-food industry into the future;
- making an estimated $103.1-million investment in AgriInsurance premiums, which represents approximately 24 per cent of the total projected premiums of $432.4-million and is government’s largest-ever contribution to the program, enabling farmers to have better access to adequate coverage;
- implementing a three-year rent reduction for forage leases providing ranchers with up to $4-million in relief, with a 50 per cent reduction in 2023, a 33 per cent reduction in 2024 and a 15 per cent reduction in 2025;
- investing $2.5-million in capital funding equipment enhancements at the Food Development Centre to support the continued implementation of the Manitoba Protein Advantage, plant innovation and product commercialization;
- increasing the maximum loan limit by $500,000 for direct loans available through the Manitoba Agricultural Services Corporation to assist in the creation and expansion of farming operations in rural Manitoba;
- investing an additional $394,000 to build capacity to support the active and productive management of Agricultural Crown Lands; and
- expanding the contract price option that allows crop producers to blend the contracted price of their production with the base AgriInsurance dollar value on the majority of field crops starting in 2023 to better reflect expected agriculture commodity prices.
Well-cared-for animals and poultry strengthens the sustainability of farming operations and provides broad-based economic benefits for many sectors, including transportation and financial services. To bolster animal disease preparedness in Manitoba, Manitoba Agriculture is leading efforts on animal disease surveillance and detection.
Budget 2023 is strengthening veterinary diagnostic testing and disease analysis to reduce large-scale risks for livestock and poultry producers by:
- investing $396,000 to support the operations of the new Laboratory Information Management System; and
- enhancing staffing at the Veterinary Diagnostic Services Laboratory to support higher volumes of animal disease testing and the provision of timely results.
Mining
Manitoba is experiencing the highest level of exploration expenditures in the history of the province. Natural Resources Canada notes a 95 per cent increase in mining exploration investments in 2021 and an estimated 28 per cent increase in 2022.
To support the increased interest in Manitoba as a world-class mining destination, Budget 2023 permanently increases department capacity to improve the mineral tenure and work permit process timelines. The 18 new positions will provide additional capacity to ensure Manitoba is responsive to industry and is a 50 per cent increase of staffing complement from Budget 2022 levels.
The number of companies exploring for lithium has almost tripled to 18 companies since 2020, including one of the world’s largest producers of mineral resources. Four firms are planning lithium mines, and three groups engaged with six companies are actively exploring the establishment of lithium-processing facilities in Manitoba.
Canadian Premium Sands announced plans for Canada’s first solar panel glass manufacturing facility near Selkirk, which is to start construction in the fall of 2023. The manufacturing plant and silica sand mine near Seymourville represent an investment of more than $300-million and will create more than 320 permanent jobs. Both projects are being developed with the support of Hollow Water First Nation.
- The Potash and Agri-Development Corporation of Manitoba, with its equity partner Gambler First Nation, is constructing the first potash mine in southwestern Manitoba using selective solution mining processes. Production is expected to begin in March 2023, starting at 100,000 tonnes per year and rising to one million tonnes in five years.
Manitoba has also renewed the Manitoba Mineral Development Fund partnership with the Manitoba Chamber of Commerce. Within this partnership, Manitoba will contribute to sustainable economic growth by supporting strategic projects that capitalize on mineral potential and other existing assets of the mineral supply chain.
Over the next three years, $10-million will be provided to leverage private sector investment that will
support the growth of the mineral sector in Manitoba.
Oil and Gas Sector
Manitoba’s oil and gas industry continues to play an important role in the provincial economy. In 2022, Manitoba issued 130 Crown oil and gas leases and 487 applications and licenses for oil extraction, a 16.5 per cent increase from the previous year. In 2023, the oil and gas industry is anticipated to invest close to $400-million in Manitoba, which supports more than 1,000 full time jobs in the sector.
Federal policies around greenhouse gas emissions and carbon tax are influencing spending decisions in the industry and driving change. To meet greenhouse gas emission reduction targets and address carbon taxes, the industry is looking for investment opportunities in carbon capture and underground storage and utilization.
To support the oil and gas industry Manitoba is proposing a regulatory framework for carbon capture, underground storage, and utilization. This framework will support the provincial Climate and Green Action Plan objective to reduce harmful carbon dioxide emissions and create certainty for industry.
Health and Post-Secondary Education Tax Levy
Growing the Manitoba population is an important key to growing the economy. The historic improvements to Manitoba personal income taxes will help attract and retain Manitobans in the province. It will also encourage employers to hire more Manitobans and provide Manitobans with good paying jobs.
Budget 2023 continues efforts to support job creation and increasing payrolls by increasing the Health and Post-Secondary Education Tax Levy (commonly referred to as the "payroll tax") thresholds for the fourth consecutive year.
The Health and Post-Secondary Education Tax Levy is a tax imposed on remuneration paid to employees by companies with a permanent residence in Manitoba. Too many businesses are paying payroll tax, which can discourage entrepreneurship and investment and employment.
Since 2020, the government has increased the exemption at which employers do not pay the tax from $1.25-million to $2-million in 2023, and the payroll at which employers pay tax at a reduced effective rate from $2.5-million to $4-million in 2023. These changes provide nearly $28-million in annual tax savings.
Effective Jan. 1, 2024, Budget 2023 increases the exemption to $2.25-million and the reduced rate threshold
to $4.5-million.
This will benefit approximately 900 employers, including exempting 150 employers from the tax entirely. This
increase to the thresholds will provide an additional $9-million in annual tax savings to employers.
Payroll Tax Savings and Employers No Longer Paying Payroll Tax (Compared to 2020)
In addition, if fiscal updates show better than expected revenue performance, the government will implement the first rate reduction in 25 years in the tax levy for 2024, from 4.3 per cent to 4.0 per cent on payroll between $2.25-million and $4.5-million and from 2.15 per cent to 2.0 per cent on total payroll if payroll exceeds $4.5-million.
This rate reduction will be confirmed before Jan. 1, 2024. Tying this change to the province’s fiscal performance is the most responsible way to ensure there are sufficient resources and a strong enough fiscal foundation to support this reduction.
This rate reduction will benefit all 2,750 businesses paying the tax and result in a further annual tax savings of $35-million beginning in 2024. This would provide total incremental annual tax savings of $44-million beginning in 2024 when combined with the threshold adjustments.
Manitoba recognizes the payroll tax is money businesses and employers could better use to hire Manitobans or increase worker wages. The reduction to 2.0 per cent in 2024 is an important first step towards the elimination of this tax.
Interactive Digital Media Tax Credit
Manitoba’s media sector is burgeoning, and Budget 2023 continues to support this creative industry. The Interactive Digital Media Tax Credit will be enhanced as of Apr. 1, 2023 by expanding eligible expenditures to allow for more flexible forms of employee compensation and incentives as eligible labour expenditures. This does not include labour expenditures such as bonuses tied to profits or revenues, stock options and signing bonuses, which will remain ineligible.
The industry is evolving as it adopts progressive wage packages to address the competitiveness of its work force with other sectors with similar skill requirements. This enhancement to the credit is estimated to provide over $200,000 in on-going annual tax savings to this industry.
This credit was previously enhanced and modernized in 2021 to help continue to grow the industry. Manitoba eliminated the tax credit’s expiration date, simplified the initial application for a Certificate of Eligibility, and expanded the tax credit’s eligibility to allow add-on activities, such as downloadable content, ongoing maintenance and updates, and data management and analysis that are complementary to the main products being developed.
These enhancements have made the tax credit more competitive with other jurisdictions and is serving as an important tool to help attract investment, jobs and growth in the sector.
Building a Skilled Workforce
Like the rest of Canada, Manitoba is facing a tight labour market, with the provincial unemployment rate at a near all-time low and job vacancies at record highs.
A skilled workforce is the engine that runs an innovative and productive economy.
Industry stakeholders have indicated that labour shortages are the most significant impediment to economic growth. Manitoba is forecasting 114,300 job openings between 2022 and 2026, and 56 per cent will require some post-secondary education and training (e.g., college, university, trade certification).
In Budget 2023, the government is investing an additional $92.5-million in funding to support post-secondary education and the labour market, an 11.5 per cent increase from 2022/23.
To ensure individuals gain the skills and competencies needed to meet growing provincial needs, Budget 2023 sets out investments focused on addressing provincial labour market needs, including:
- $7.5-million for a total $12.5-million project for an innovative, interdisciplinary health and community services simulation centre at Red River College Polytechnic (RRC Polytech) to support up to an additional 115 nursing seats and support the college’s commitment to train more nurses and health-care professionals;
-
$1.3-million in capital and operating funding for Assiniboine Community College (ACC) to offer training
for a one-time 25-student cohort in its practical nurse diploma program in Neepawa
starting in 2023/24 to help address the urgent nurse staffing need for the new Neepawa hospital, which is slated to open in 2025; - $725,000 to increase training seats by 25 per cent (from 16 to 20) in the University of Manitoba’s Respiratory Therapy program; and
- $539,000 to expand the inter-provincial agreement with the Western College of Veterinary Medicine at the University of Saskatchewan and help attract, train and retain veterinarians to reinforce commercial agriculture in rural areas. Funding will increase the intake to 20 seats every year until it supports 80 Manitoba students annually through the four-year program.
The province will also invest $10-million for the expansion of other post-secondary education and
training aimed specifically at meeting Manitoba’s growing labour market needs. This will support a
number of programs at different post-secondary partners.
The Sector Council Program supports organizations in key Manitoba economic sectors to deliver workforce training to support business growth and prosperity.
Budget 2023 commits $40.4-million to expand and enhance the Sector Council Program over the next four
years to support economic growth and help reduce the labour demand/supply gap by helping employers
attract, recruit, train and retain employees.
The provincial apprenticeship system saw a significant rebound in new registrations in 2021/22. New registrations accelerated by 55 per cent to a record 2,770 registrants, making up substantially more than the 24 per cent decline reported in 2020/21.
To further encourage participation in the trades, the government is increasing awareness of the benefits, opportunities and value of apprenticeship programs and to promote trades as a career path through its new partnership with Employment and Social Development Canada’s Skilled Trades, Awareness and Readiness (STAR) program.
Supporting students to access and achieve their education goals is critical to growing the provincial
workforce.
Budget 2023 commits an additional $1.4-million to the Manitoba Bursary program.
This represents a total increase of $13-million since 2017/18.
Newcomer Education and Training Supports
Labour shortages are being addressed by ensuring every Manitoban is working to their full potential. Each year, the province attracts thousands of newcomers who make Manitoba their home; however, many are not working in their fields of education and experience.
In 2022, the province welcomed more than 21,000 permanent residents across all immigration categories, including almost 14,000 through the Manitoba Provincial Nominee Program. This is the highest annual number of nominees since the program was established in 1998.
Manitoba Permanent Resident Landings
Budget 2023 will help further this momentum to support the economy and continue growing the number of
nominees making Manitoba home.
To that end, the Manitoba government will invest an additional $2-million to expand the Newcomer
Community Integration Support Program to ensure the provision of robust settlement and integration
services.
And work is underway to bring entrepreneurs to Manitoba to start new businesses outside of Winnipeg.
Manitoba’s Fair Registration Practices Office will continue its work with self-regulated professions to ensure internationally-educated applicants can practice in their chosen fields sooner.
In 2023, Manitoba will invest $3.6-million to launch a new pilot program for internationally-educated
professionals to reduce financial barriers and help newcomers fill in-demand jobs that match their
education and
experiences.
Manitoba settlement service providers also deliver services to Ukrainian temporary residents who have fled Russia’s brutal and unjust war. Between April 2022 and January 2023, more than 16,000 Canada-Ukraine Authorization for Emergency Travel holders have visited Manitoba’s Ukraine Reception Centre, with more than 12,000 applying for Manitoba health car ds.
