A tale of two budgets: Manitoba includes $1.1 billion in contingency funding in wake of tariff threats

CTV’s Jeff Keele has more on the Manitoba government tabling the 2025 budget and what Manitobans should expect amid tariff uncertainty.

The tale of two budgets in one.

The Manitoba government unveiled its plans for Budget 2025, which includes putting contingencies in place if U.S. President Donald Trump implements tariffs on Canadian goods.

Blanket tariffs could be coming on April 2, which would see a 25 per cent increase on all products that cross the border into the United States.

In preparation for that, the province could have an additional $1.1 billion added to the budget that would be used to help Manitobans.

Of that, $500 million will go toward helping businesses find new markets to send products, give loans to Manitoba businesses, and support farmers.

As well, there would be money for programs for families, funding for post-secondary retraining for Manitoba workers, and an increase to student aid and student loans.

Without tariffs, the deficit by the end of the fiscal year is forecast at $794 million. However, if contingencies are put in place to deal with tariffs, the deficit could be more than $1.8 billion, depending on how long tariffs are in place.

“We are putting Manitoba workers and businesses ahead of American corporations,” said Finance Minister Adrian Sala in his budget speech.

As part of Budget 2025, the province is investing $3.7 billion in capital projects.

Part of that is an extra $120 million to complete Phase 2 of the North End Water Treatment Plant.

A total of $881 million will be used to upgrade Manitoba Hydro infrastructure.

The government is also working with First Nations to generate 600 megawatts of wind power as part of a new Indigenous loan guarantee program.

$809 million will be used for transportation infrastructure, including Highway 1 East being twinned, the outlet channels at Lake St. Martin and Lake Manitoba being built, and building an interchange at McGillivray on the Perimeter Highway.

There will also be a four per cent increase to the highways budget.

Businesses will be able to apply for money to help protect themselves from theft and break-ins. The province is launching a $10 million Business Security Rebate, which will allow businesses to apply for up to $2,500 for increased security measures. The $300 home security rebate will also be renewed.

Manitoba will also soon have a gold mine as the province is investing in a project in Lynn Lake.

Health care and child care

On top of previously announced projects to build and renovate new emergency rooms throughout Manitoba, the government is including funding to ensure the morning-after pill is part of the free Birth Control Program.

There is also funding to “protect safe abortion services at Women’s Health Clinic.”

For child care, the Manitoba government is following through on its campaign promise to expand the $10/day child care program. This expansion will now include holidays and the summer, which the province said will result in over $2,000 in savings per year.

Taxes

The province is increasing the School Property Tax Credit by $100 a year.

The Renters Affordability Tax Credit is increasing from $575 in 2025 to $625 in 2026. The seniors top-up is climbing from $328 in 2025 to $357 in 2026.

Starting next year, payroll taxes will be reduced for 875 businesses, which includes 150 being exempt. This will cost the province $8.5 million for the year.

Despite some cuts, there are tax increases. By freezing the indexation of the Basic Personal Amount and Income Tax Bracket thresholds to inflation, the government said it will bring in an additional $82 million in a full year.

Also, the Manitoba government is adding PST to technology starting in 2026, by taxing subscriptions to software, data storage, and remote computer processing.

Additional budget details

The EV rebate will be continuing in the province, with some slight changes. In response to Elon Musk’s connection to the U.S. government, the province said the rebate will not apply to Teslas. The rebate will also be eliminated for EVs made in China—a retaliatory measure to China’s tariffs on Canada.

A contract with a Texas company to make park passes is also coming to an end.

Manitoba is investing in fighting forest fires by spending $80 million to purchase three Canada-made water bombers.

Travel Manitoba will also be receiving a $4.5 million investment to help “market Manitoba to the world.”