FOR IMMEDIATE RELEASE
December 15, 2025
WINNIPEG (TREATY ONE) – Manitoba’s second quarter fiscal update, released this afternoon, provides a snapshot of the difficult fiscal landscape created by tariffs and climate volatility.
Manitoba is now projecting a deficit of $1.66 billion for the 2025/26 fiscal year, up from $890 million in the first quarter update. Expenses are up due to the large response required to support communities affected by a record-breaking wildfire season. At the same time, lower economic growth caused by the ongoing trade war with the US and China, as well as lower Hydro revenues due to drought conditions, are pulling revenue down.
“Between the ongoing trade war, drought, and a record-breaking fire season, Manitoba’s provincial treasury is being hit hard by tough circumstances,” said Niall Harney, Senior Researcher and Errol Black Chair in Labour Issues at the Canadian Centre for Policy Alternatives, Manitoba office (CCPA-MB).
“The long-term costs of public services cuts under previous governments are still being uncovered, from the housing crisis, to health care wait times, to growing income inequality, to public service capacity and the need for climate action.”
“This government has made important progress on rebuilding these services. We do not want to see this progress jeopardized by a focus on balancing the budget in the next two years.”
“Manitoba’s deficit is being amplified by the unsustainable tax cuts introduced in the 2022 and 2023 budgets. Although this government has taken steps to restore progressive taxation measures, the government should consider additional measures to reform taxation of corporations and high-income households, most of whom have done very well over the last two years.”
Contact:
Niall Harney, CCPA Senior Researcher and Errol Black Chair in Labour Issues, Mobile: 204-510-7934, [email protected].
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The CCPA is an independent, non-profit charitable research institute founded in 1980.
