Manitoba to spend on job creation amid U.S. trade battle: finance minister – Winnipeg

The Manitoba government signalled Wednesday that its new budget will include supports for people affected by tariffs imposed by the United States and new spending to create jobs.

Finance Minister Adrien Sala said the NDP government remains committed to balancing the budget and ending a string of deficits before the next election, expected in 2027, but spending is required to bolster Manitoba’s economy.

“We know one of the most important things we can do to respond to this tariff threat is to build, because we know that putting people to work will ensure Manitobans have access to good jobs and will create opportunities for our economy to grow,” Sala told reporters.

The province has already offered businesses the option of deferring some taxes, and Sala hinted more help may be on the way.

“We of course know that businesses, like all Manitobans, are worried right now in (the) face of the tariffs, and tomorrow’s budget will speak to them.”

There will essentially be two budgets, Sala said — a regular one and a contingency one to deal with the impact of tariffs on Manitoba goods.

Sala repeatedly used the word “building” to describe the budget. The focus on creating jobs through building projects is similar to that of a former NDP government in 2014.

Faced with an economic slowdown, a cut in federal equalization payments and ongoing deficits, former premier Greg Selinger launched a “steady growth, good jobs” program to build roads, bridges and other infrastructure. The move followed an unpopular increase in the provincial sales tax.

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Manitoba has run deficits in every year but two since 2009, and one political analyst said the NDP’s promise to balance the budget seems like an uphill battle, especially with the economic fallout from the U.S. trade war.

“The finance minister was already pushing a big boulder up a very, very steep hill. The boulder seems to be getting bigger and the hill seems to be getting steeper,” said Paul Thomas, professor emeritus of political studies at the University of Manitoba.

The projected deficit for the fiscal year that ends this month has jumped to $1.3 billion from the $796 million originally predicted, largely because of cost overruns in health care.

Thomas said there’s been little evidence the government is moving to contain costs, as it works to fulfil promises to improve health care and increase public-sector pay.

“From outside of government, there are unrelenting demands for new spending or increases in existing spending, and the government seems to be having a hard time saying no,” Thomas said.

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