Credit rating agency says Manitoba's recent tax changes outweigh affordability offers
The Manitoba government is expected to use more 'revenue levers,' similar to its recent income and property tax changes, as part of its plan to reduce the deficit, a credit-rating agency report says.
S&P Global Ratings has affirmed the Manitoba government's existing short-term and long-term credit ratings and says the outlook for the province is stable, based in part on expected revenue changes and spending control.
'The stable outlook reflects our expectation that, despite economic growth and trade uncertainty, Manitoba will deploy revenue levers and expenditure management to generate stronger fiscal outcomes in the next two years,' the report, issued May 26, said.
The NDP government, elected in 2023, has promised to reduce costs for Manitobans. It has taken out advertising to promote its cut to the provincial fuel tax, an increase to a tax credit for renters and other measures.
Story continues below advertisement
But the money forgone by the province for those measures is outweighed by recent tax changes that are boosting provincial revenues, a director with S&P said. That includes a change in this year's budget that will no longer see income tax brackets automatically rise in line with inflation.
Get daily National news
Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up
By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy
'That alone is enough to offset all the affordability measures that they're putting in,' Bhavini Patel, director in S&P's Canadian international public finance group, said in an interview.
The NDP government has promised to balance the budget before the next election, slated for 2027. That would end a string of annual deficits that stretches back almost continuously to 2009, with the exception of two surpluses.
Part of the province's revenue growth has come from recent changes that will see many property owners and income-earners pay more.
In last year's budget, the government changed the way education tax credits on property are calculated.
The government estimated the change would net the province an extra $148 million a year, although that number is likely to grow due to recent increases in property assessments and taxes levied by school divisions.
In this year's budget, the government stopped indexing income tax brackets and the basic personal exemption to inflation. By keeping the brackets and exemption constant as wages increase, unlike most provinces, the government is forecasting an extra $82 million in revenue.
Story continues below advertisement
Finance Minister Adrien Sala said he's not looking at future tax changes aimed at garnering more money, and is expecting an economic boost to increase revenue.
'I think the biggest driver of new revenues will be economic growth,' he said in an interview. He pointed to the recent start of construction of the Alamos gold mine near Lynn Lake as an example.
The government is also looking at keeping annual spending growth in check in order to balance the budget, he said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Winnipeg Free Press
33 minutes ago
- Winnipeg Free Press
$30B in new investments needed to meet Canada's critical mineral demand: report
TORONTO – A newly released report estimates Canada will need at least $30 billion in new capital investments by 2040 if it wants to meet domestic demand for the critical minerals key to a green economy transition. But the Canadian Climate Institute's report says cutting back on environmental safeguards and Indigenous consultation to speed up those projects is likely to backfire. The report released Thursday says those cutbacks can lead to delays later on, due to community opposition or litigation. The think tank's latest report comes as the federal government, along with Ontario and British Columbia, face major pushback from First Nations and environmental groups to legislation intended to speed up mining project approvals. The report says Canadian governments should support Indigenous participation and reduce environmental risks as part of efforts to reduce regulatory delays. It says Canada has a big opportunity to capitalize on the surging domestic and global demand for critical minerals to build the batteries, solar panels and electric vehicles required to reduce greenhouse gas emissions. It estimates domestic demand alone for six key critical minerals, including lithium and copper, will reach $16 billion by 2040 if Canada keep up its climate policies, with almost half of that coming from EV manufacturers. To meet that demand, the think tank estimates Canadian mining projects will need a total of $30 billion in capital investments, and even more if the industry wants to help satiate international demand too. The report says that's also likely a lowball figure since it excludes major cost overruns that often plague mining projects. The estimated domestic need 'vastly exceeds' current investment in the sector, which averaged about $2 billion per year from 2018 to 2023, the report said. The report suggests there's a role for governments to step in to support the sector with either equity investments or financial risk-sharing agreements. But it should not come at the expense of Indigenous consultation or environmental oversight, the authors say. 'Successful projects that are being developed fast are the ones that have participation from Indigenous communities, that have adhered to the highest environmental standard,' said co-author Marisa Beck, the think tank's clean growth research director. Critics say recently passed Bill 15 in B.C. and Bill 5 in Ontario gives those provinces sweeping powers to exempt mining projects from environmental oversight and undermines constitutional obligations to consult First Nations. The provincial governments disagree and say the legislation will help speed up approvals without sacrificing First Nations rights or environmental protections. Ottawa has also faced pushback to its legislation intended to speed up infrastructure approvals. The authors of Thursday's report declined to comment on the specifics of those legislative efforts, but it did put forward several policy recommendations. Governments should also support Indigenous communities exercising their right to self-determination and economic participation, such as through funding for Indigenous-led environmental assessments, the report says. Elsewhere, the report recommends provinces strengthen mining regulations to reduce environmental risks and liabilities, such as requiring producers to make their closure plans publicly available. This report by The Canadian Press was first published June 12, 2025.
Globe and Mail
an hour ago
- Globe and Mail
World shares are mixed as markets shrug at latest China-US trade deal
TOKYO (AP) — World shares were trading mixed early Thursday after Wall Street's rally stalled, as investors appeared not to react much to the results of the latest round of China-U.S. trade talks. Germany's DAX lost 0.7% to 23,787.77 and the CAC 40 in Paris slipped 0.4% to 7,744.41. Britain's FTSE 100 was nearly unchanged at 8,863.07. The futures for the S&P 500 and the Dow Jones Industrial Average were down 0.3%. In Asian trading, Japan's Nikkei 225 lost 0.5% to 38,216.06. Hong Kong's Hang Seng sank 0.5% to 24,234.80, while the Shanghai Composite index edged 0.1% lower to 3,404.66. In South Korea, the Kospi gained 0.9% to 2,933.44, while Australia's S&P/ASX 200 edged 0.1% higher to 8,604.50. Taiwan's Taiex lost 0.8%. On Wednesday, the S&P 500 fell 0.3% to 6,022.24 for its first loss in four days. The Dow Jones Industrial Average was virtually unchanged at 42,865.77 after edging down by 1 point. The Nasdaq composite slipped 0.5% to 3,400.30. Several Big Tech stocks led the way lower, and a 1.9% drop for Apple was the heaviest weight on the market. It's been listless this week after unveiling several modest upcoming changes to the software that runs its devices. The action was stronger in the bond market, where Treasury yields eased after a report suggested President Donald Trump's tariffs are not pushing inflation much higher, at least not yet. U.S. consumers had to pay prices for food, gasoline and other costs of living that were 2.4% higher overall in May than a year earlier. That was up from April's 2.3% inflation rate, but it wasn't as bad as the 2.5% that Wall Street was expecting. A fear has been that Trump's wide-ranging tariffs could ignite an acceleration in inflation, just when it had seemed to get nearly all the way back to the Federal Reserve's 2% target from more than 9% three summers ago. It hasn't happened, though economists warn it may take months more to feel the full effect of Trump's tariffs. Trump said Wednesday that China will supply rare-earth minerals and magnets to the United States, while his government will allow Chinese students into U.S. universities in a deal that still needs an agreement by him and by China's leader. Trump also said that 'President XI and I are going to work closely together to open up China to American Trade. This would be a great WIN for both countries!!!' Investors are still hoping for a more sweeping trade deal that would ease tensions between the world's two largest economies. Hopes for such deals between the United States and countries around the world have been one of the main reasons the S&P 500 has charged nearly all the way back to its all-time high after dropping roughly 20% below a couple months ago. Without them, the fear is that Trump's high tariffs could drive the economy into a recession while pushing inflation higher. The S&P 500 is now sitting 2% below its record. Tesla swung between gains and losses before finishing with a rise of 0.1% to continue its shaky run. It's been recovering much of its big losses taken last week after Elon Musk's relationship with Trump imploded, which in turn raised fears about a loss of business for the electric-vehicle company. Musk on Wednesday backed away from some of his earlier comments and said they went 'too far.' In the bond market, the yield on the 10-year Treasury eased to 4.41% from 4.47% late Tuesday. Shorter-term yields, which more closely track expectations for what the Federal Reserve will do with overnight interest rates, fell more. Wednesday's better-than-expected reading on inflation raised expectations along Wall Street that the Fed could cut its main interest rate at least twice by the end of the year. In other dealings early Thursday, U.S. benchmark crude oil lost 46 cents to $67.69 per barrel. Brent crude, the international standard, shed 53 cents to $69.24 per barrel. The U.S. dollar slipped to 143.90 Japanese yen from 144.60 yen. The euro rose to $1.1518 from $1.1487.
Winnipeg Free Press
2 hours ago
- Winnipeg Free Press
Celebrating Canada
Opinion My HEART bursts with pride and a deep sense of gratitude whenever I hear or sing our national anthem. 'O Canada, our home and native land, true patriot love…' I'm swept away by a spirit of intense patriotism. I am a Canadian by choice and not by birth, but my heart is Canadian through and through. I was born in Russia of German parents. The designation of nationality in my passport said 'stateless' and feelings of rejection and worthlessness were real and deep. But all that changed when on Aug. 20, 1950, as a 17-year-old German refugee, I stepped on Canadian soil at the Quebec City harbour. I received my Canadian citizenship five years later. When we immigrated to Canada, things were different. For the first time in my life I felt accepted. Accepted for who I am as a person and not for where I was born. Our great and free country of Canada, being such a collection of nationalities from around the globe, is uniquely equipped to make one feel part of the distinct mosaic of its society and feel at home here no matter where one's cradle stood. That is why I appreciate Canada so much and on this Canada Day I want to again sing its praises. I thank God that my children and grandchildren have the privilege of growing up in freedom in this great country with equal opportunity for all. On the 50th anniversary of my arrival in Canada, I hosted a family celebration dinner in my home with a Canada cake, Canadian flags and a prayer of thanks. Regarding equality for all, at a reception for new Canadians at Government House several years ago, then-Lt.-Gov. Peter Liba shared an amazing example. His father, Theodore Liba, who in 1926, as a 23-year-old Polish immigrant to Canada, had the unique opportunity of meeting King George VI and Queen Elizabeth during their visit at Government House in 1939, before the outbreak of the Second World War. Winnipeg's prestigious Hotel Fort Garry was catering the meal for this special occasion. Liba's father, an employee of the Fort Garry Hotel at that time, had the unique opportunity of serving the Royal couple. Sixty years later, his son Peter Liba was sworn in as the 22nd lieutenant-governor of Manitoba. In his own words: 'Where else, in one generation, could you go from serving as a waiter at Government House for a royal reception to now serving in the vice-regal role as the Queen's representative in Manitoba, using the front door, not the side entrance?' Where else, indeed! During opening exercises at the weekly children's club at our church, we stand at attention in a circle, saluting the Canadian flag, our right hands on our heart, pledging allegiance to Canada. As my eyes sweep over the large circle of boys and girls, I see that many different nationalities from all over the globe are represented. Such diverse cultural backgrounds, and yet we are one as Canadians working for our country together. As we all join our voices singing our national anthem, I feel chills running down my spine, moved with patriotic love and gratitude. Seeing the bright and energetic multi-ethnic young Canadians, I realize anew how great and glorious Canada really is. 'God keep our land glorious and free, O Canada, we stand on guard for thee.' Maria Rogalski writes from Winnipeg.
