March 25, 2009
Budget 2009 charts a balanced, steady course by investing in health, education and training, stimulates the economy through infrastructure investments and is the 10th consecutive balanced budget since 1999, making this the first full decade of balanced budgets by a government in Manitoba in more than 50 years, Finance Minister Greg Selinger said today.
“The hard work of Manitobans over the last 10 years has positioned our province very well to meet the difficult economic challenges ahead,” said Selinger. “This hard work has enabled us to introduce, for the 10th year in a row, a budget that is balanced, steady and does not run a deficit. It is a plan that invests in infrastructure, health care, training and skills development while at the same time keeping our 2009 tax cut commitments.
“Above all, this budget does not leave Manitoba standing still. It makes important investments into the knowledge and skills economy to keep our province moving forward to better enable us to emerge from this time of economic uncertainty stronger than before.”
Budget 2009 projects a $48-million summary financial surplus that includes core government departments, Crown corporations and pension obligations while making a payment of $20 million to reduce debt and pay for pension liabilities. The budget projects a Fiscal Stabilization Account balance of $634 million at the end of 2009-10 after a $110-million draw to ensure vital services in health, education and training are maintained.
“Together with Manitobans, we saved for the future and tripled the size of the province’s savings account,” said Selinger. “This account acts as a shock absorber to ensure core government programs are not disrupted when exceptional circumstances arise. We will use this account to continue to invest in our greatest resource – the people of Manitoba.”
Selinger said Budget 2009 builds for the future by investing $1.6 billion in infrastructure that will create work for Manitoba businesses, jobs for Manitobans and help to stimulate the economy. It includes:
· investing over $160 million as part of social housing renewal, the largest single investment in public housing in Manitoba’s history;
· investments to upgrade and build roads and highways for a total of $545 million;
· a four-year, multimillion dollar capital plan for Manitoba’s public schools;
· $46 million for water and waste-water projects;
· partnering with the federal government on key priorities funded through federal stimulus programs as well as the Building Canada Plan;
· health capital projects including the Westman Regional Laboratory in Brandon, the cardiac science facility at St. Boniface Hospital, redevelopment of the emergency department at Victoria General Hospital and a new Aboriginal personal-care home in Winnipeg; and
· a new, all-purpose road on the east side of Lake Winnipeg.
Selinger said that investing in education, training and skills development today enables the province to lay a solid foundation for the innovations of tomorrow. By investing in the province’s schools, universities and colleges, Budget 2009 provides opportunities for the province’s young people to develop the skills they need to be competitive and grow the knowledge economy, he said.
To this end, Budget 2009 provides:
· a six per cent overall increase in base operating grants and strategic program investments for universities and colleges,
· additional training seats and a new bursary fund for prospective apprentices,
· a 5.25 per cent increase to public schools,
· doubling the number of scholarships for Aboriginal medical students, and
· a new incentive to encourage high-school graduates to pursue careers in the skilled trades.
Selinger said that in response to challenging economic times, many Manitoba families may be looking for recreation opportunities closer to home. To encourage Manitobans to see more of their province, the budget removes entrance fees to all provincial parks for the next two years.
The budget continues the strong commitment to families and the government’s commitment to providing quality, accessible health care by:
· increasing funding to attract and retain more physicians and specialists,
· increasing funding to hire more emergency room staff and add new ambulances to the provincial fleet,
· expanding mental-health crisis stabilization services for youth,
· adding child-care spaces and increasing wages for child-care staff,
· increasing support for children in care, and
· increasing support for some Manitobans on income assistance.
The budget keeps an earlier commitment to lower income taxes in 2009 by increasing the personal exemption for every taxpayer by $100 and adding $100 to the spousal and eligible dependent amounts, decreasing the lowest tax rate to 10.8 per cent and increasing the income levels for the first and second tax brackets to $31,000 and $67,000. Manitoba’s new Primary Caregiver Tax Credit also began this year, saving caregivers up to $1,020 annually.
Selinger said that in addition to these tax measures, the budget provides businesses in Manitoba with improved access to capital by tripling the value of loans available through the Manitoba Industrial Opportunities Program for businesses creating or maintaining jobs in Manitoba.
Budget 2009 continues to cut business taxes and eases access to capital by:
· eliminating the small business income tax rate to zero before the end of 2010, down from
eight per cent in 1999;
eight per cent in 1999;
· lowering the general corporate income tax rate to 12 per cent in July 2009;
· continuing with the phase-out of the general Corporation Capital Tax, on track for elimination by the end of 2010;
· reducing the mining tax to 10, 15 and 17 per cent, depending on taxable income;
· paralleling business tax reductions announced in the 2009 federal budget including increased depreciation rates for manufacturing machinery and equipment, and computer systems;
· providing additional funding for innovation through the Manitoba Research and Innovation Fund; and
· reducing tax rates for the mining sector to stimulate investment and extending the Manitoba Mineral Exploration Tax Credit for three more years, doubling the tax credit in 2009 and tripling it in 2010.
The budget provides Manitoba municipalities and communities with increased funding for roads, transit, public safety and other municipal infrastructure and service priorities. The City of Winnipeg will receive $213 million, an increase of $10.5 million over 2008 to support transit, road maintenance and repair, and public safety. Budget 2009 also provides $4 million in new funding for ambulance services in the city of Winnipeg and provides funding for 10 additional police officers in Winnipeg.
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