Key Changes to 2025/26

Revenue

Summary budget – revenue

Taxation revenue

Individual income tax

Corporation income tax

Other taxes

Total changes in taxation revenue

Fees and other revenue

Federal transfers

Government business enterprises (GBEs)

Endowment contributions

Recovery from GBEs and other investment earnings

Contingency

Net increase in revenue

2025/26 revenue

Additional Expenditure

Authority

Health, Seniors and Long-Term Care

Enabling appropriations

Total additional expenditure authority

Key Changes to 2025/26

Expenses

Summary budget - expenses

Expense variances:

Emergency expenditures

Families

Environment and Climate Change

Health, Seniors and Long-Term Care

Advanced Education and Training

Agriculture

Municipal and Northern Relations

Enabling appropriations

Justice

Tax credits

Debt servicing

Other net changes

Net increase in expenses

2025/26 expenses

Summary of Manitoba’s

Response to Unprecedented

Wildfires in 2025

Emergency expenditures:

Wildfire suppression

Evacuee related costs

Disaster Financial Assistance

(DFA) program and other operating costs

Subtotal emergency expenditures wildfire costs*

Natural Resources and

Indigenous Futures:

Manitoba Wildfire Service

Wildfire suppression

Subtotal Natural Resources and

Indigenous Futures wildfire costs

Total cost of Manitoba’s 2025 wildfire

response

With government support, Assiniboine College is establishing 20-seat programs in Combined Laboratory X-Ray Technology and Medical Laboratory Technology, with first intakes anticipated in September 2027, following completion of capital upgrades.

With government support, University College of the North (UCN) expanded its offering of health-care aide seats, including in a community site in Northern Manitoba. By actively publicizing the expanded program, UCN seeks to fill its 130 seats and support the demand for direct personal care and daily living support to seniors, individuals with disabilities, and other patients in hospitals, personal care homes, and community settings, helping people maintain their health, dignity, and independence close to home.

By fall 2025, government support permitted UCN to deliver its new Primary Care Paramedic diploma program, the first in Northern Manitoba, to students in both Thompson and The Pas. UCN’s active student outreach promises to attract more students to fill the 16-seat program capacity at each campus. The two-year program provides students with the knowledge and hands-on training required to deliver emergency medical care and strengthens and improves access to emergency services in Northern Manitoba.

Government continues to provide ongoing funding to support previously approved health training expansions, including 25 nurse practitioner, 10 occupational therapy, 10 physical therapy, 15 physician assistant, and 30 Undergraduate Medical Education seats, all of which are now in place and contributing to increased health-care training capacity.

In 2025/26, the Manitoba government provided $10 million in capital funding toward the construction of the Bannatyne Building at the University of Manitoba as part of a $40 million

multi-year commitment to support expanded physician and allied health training capacity. This investment supports the infrastructure required to sustain the expanded Undergraduate Medical Education program, which increased capacity by 30 seats to 140 students annually.

Additional Institutional Safety Officers (ISOs) have been introduced across the health system to provide advanced security services in support of staff, patients, and visitors, including in Thompson. ISOs receive extensive training to respond to a wide range of security needs.

Government invested $47 million to support opening 97 new fully staffed beds in the health-care system, reducing strain on our hospitals and helping to move patients from the ER to more appropriate levels of care sooner. This includes 60 acute care beds, 10 new critical care beds and 27 new transitional care beds.

Construction of the Lac du Bonnet Personal Care Home progressed during 2025/26, with $17.1 million spent on construction activities and key project milestones achieved, as development of the new facility continued toward completion.

The $55 million budget commitment for diagnostic and surgical services across the province was fulfilled.

Manitoba advanced key health workforce priorities through nurse-to-patient ratio legislation, elimination of mandatory overtime for nurses, and implementation planning. The Provincial Travel Nurse Team is supporting high-need communities while retaining nurses in the public system. Work continues to improve primary care access and strengthen recruitment and retention of physicians, nurses, paramedics, health-care aides and diagnostic professionals through expanded rural training, targeted

recruitment, financial supports, incentives, and international recruitment efforts.

The screening age for breast cancer was lowered to age 45 in December 2025. The BreastCheck expansion was largely underspent in 2025/26 as funding was flowed partway through the year.

In 2025/26, the Provincial Electronic Medical Record (EMR) Program expended $56 million to advance electronic medical record implementation and digital tools across Manitoba, supporting more coordinated and streamlined patient care throughout the province.

Significant progress was made on the new Neepawa Hospital in 2025/26, with $107 million spent on construction activities as work continued in support of the province’s commitment to deliver a new hospital for the community and surrounding region.

Effective April 15, 2025, the Manitoba Enhanced Pharmacare Program provides eligible Manitoba residents with no cost coverage of most medications for birth control, diabetes, HIV prevention and treatment and hormone replacement therapy. Federal funding for National Pharmacare has been provided to Manitoba in support of no cost coverage of diabetes and birth control medications.

Manitoba Health, Seniors and Long-Term Care continued to advance key health infrastructure projects across the province:

Work progressed in 2025/26 on the Victoria Hospital Emergency Department (ED) redevelopment and the Manitoba Menopause Clinic. Planning and design for the ED were completed, and construction commenced in March 2026. Planning for the Manitoba Menopause Clinic also advanced, including the selection of a clinic location.

In 2025/26, planning and design development advanced for the Children’s Hospital Emergency Department renovation project at the Health Sciences Centre Winnipeg, in partnership with the

Children’s Hospital Foundation of Manitoba. Supporting future renovations are aimed at reducing wait times, improving patient flow, and enhancing patient care and safety.

Development of the Health Care Centre of Excellence as part of the Portage Place redevelopment advanced during 2025/26. Planning and design activities progressed and site preparation work, including the dismantling of the east end of the former Portage Place mall, was completed to support construction of the new health-care tower.

The Park Manor Personal Care Home project in Transcona advanced during 2025/26, with planning, pre-design, and design development activities progressing to support the start of construction and delivery of the new facility.

Planning and design activities for the Arborg Personal Care Home advanced during 2025/26. Work focused on refining the project scope and updating designs to support future construction and project implementation.

Work to begin the design of a new CancerCare Manitoba facility in Winnipeg progressed during 2025/26, including site selection and the initiation of project planning activities to support future development and address growing demand for cancer services.

Planning and design activities for E.M Crowe (Eriksdale) Emergency Room reopening were completed. Work focused on refining the project scope and updating designs to support future construction and project implementation.

The Manitoba government continued the agricultural Crown land rent freeze for the 2025 growing season, maintaining rates at $3.66 per animal unit month — the lowest in Western Canada. The freeze provided financial stability for cattle producers during a challenging year, supporting the sustainability and viability of family ranches across the province.

Manitoba implemented an increase to the Renters Affordability Tax Credit for the 2026 tax year to $625 (from $575 in 2025) with up to an additional $357 for low-income seniors via the Seniors Top-Up.

Manitoba Finance provided $469 million in 2025/26 including $437 million for advance payments and $32 million for tax credits to homeowners for reducing their payments on property taxes.

Manitoba Student Aid is helping more students reach their goal of accessing post-secondary education. The number of students receiving financial assistance through the Manitoba Student Aid program for the 2025/26 program year increased by 3.7 per cent compared to 2024/25. The number of students who received a loan, grant, or bursary in 2024/25 (as of Annual Report) was 22,387. This increased to 23,209 for 2025/26.

In 2025/26, Manitoba Student Aid received a $25 million budget increase for a total provincial loan budget of $120.5 million. In the 2025/26 fiscal year, Manitoba Student Aid disbursed $109.5 million in funding through provincial student loans, as well as $23.7 million in bursaries to help more Manitobans afford post-secondary education, achieve their goals and find rewarding careers.

Aligning with its commitment to protect and invest in our parks and keep them public and affordable for families to enjoy, Manitoba offered free access to provincial parks for the fiscal year.

Manitoba expanded $10-a-day child care to school-age children on non-school days, saving families up to $788 per child.

Manitoba Hydro froze the electric rate for calendar year 2025, resulting in approximately $40 million in savings for 556,000 residential customers and 76,000 commercial and industrial customers.

To reduce barriers to work for EIA recipients, Manitoba Families increased the earnings exemption rate from $200 to $500 of net monthly earnings plus 30 per cent of additional earnings. This increases the available income of recipients who work, and can help them to maintain stable employment, housing, and health, in turn putting them on a path towards increased independence from income assistance programs.

In 2025/26, 13 full-time mental health workers were hired for community mobilization programs representing $1.118 million of the total allocation to support community mobilization programs and strengthen services for adults and youth.

In 2025/26, Manitoba Justice provided provincial funding to the RCMP under the Provincial Police

Manitoba Justice provided funding to the City of Winnipeg in 2025/26 to support the Downtown Safety Foot Patrol initiative, which enhances police presence and safety in the downtown area.

Manitoba Justice invested $500,000 in 2025/26 for an action plan to enhance safety and community wellbeing in downtown Winnipeg over the summer, supporting the Downtown Community Safety Partnership and other initiatives.

Nineteen new positions at the Manitoba Youth Centre are being filled — with 17 completing the process and hired by March 31, 2026. The $450,000 budget has been used to increase and enhance services to the youth at the centre. The Correctional Services Division of Manitoba Justice has been working with external agencies to provide youth with bank accounts, as well as City of Winnipeg passes upon release.

A Youth Summit was held on February 27, 2026 for approximately 250 students across a variety of school divisions. The objective was to inspire youth through a variety of workshops, panels, and activities with a focus on hearing their perspectives on how Manitoba can foster healthier and safer communities for youth.

Manitoba Supports for Persons with Disabilities is an income assistance program designed for low-income Manitobans living with severe and prolonged disabilities. A defining feature of the program is that the basic needs portion of benefits must be indexed annually to the March Consumer

Price Index for Manitoba, per the Disability Support Regulation.

As of March 31, 2026, the Electric Vehicle rebate program, which has delivered 5,372 approved and mailed rebates totalling over $20 million since inception, has accounted for approximately 23,100 tonnes of carbon dioxide equivalent in annual emission reductions for this fiscal year.

Families increased expenditures by $25.8 million to Community Living disABILITY Services from the previous year to support Manitobans living with an intellectual disability and their families. This investment strengthened the capacity of community agencies to deliver person-centred supports, enabling individuals to live in community settings and access residential, day, transportation and respite services.

Families provided $4.7 million to Community Living disABILITY Services to support the ongoing residential and community-based supports required for individuals who transitioned from the Manitoba Developmental Centre. This funding ensured continuity of care, supported community integration, and aligned with the province’s goal of deinstitutionalization and inclusive living.

Government invested in provincial parks through the implementation of more than $26 million in capital projects including for campground and washroom upgrades, water and wastewater treatment facility upgrades, new playgrounds, waste management initiatives, and key projects such as the development of a new comfort camping program.

In 2025/26, Environment and Climate Change distributed nearly $410,000 in grant funding to seven organizations helping to preserve Manitoba’s aquatic ecosystems and biodiversity through Aquatic Invasive Species (AIS) response and prevention. This included enhanced resources

to help partners to support Manitoba’s AIS prevention and response priorities.

Government committed $7.3 million in Municipal Operating Grant funding and $650,000 in the One Manitoba Growth Revenue Fund, distributed among First Nations and Northern Affairs Communities (NACs). Of the NACs’ allocation, $1.5 million was distributed on a per capita basis to support local administration and operations, and $1.0 million for the Northern Roads and Bridges Program. An additional $1.17 million supported infrastructure renewal and communities’ priorities, wildfire and flooding related emergency expenditures, feasibility studies, solid waste management, and regulatory compliance requirements.

Manitoba continued its on-going commitment to provide predictable funding to municipalities through the Strategic Municipal Investment Fund. In 2025/26, Manitoba provided the City of Winnipeg with $146.6 million in municipal operating funding, a $6 million increase from the $140.6 million provided in 2024/25. The increase consisted of an inflationary increase in the Municipal Operating Grant and annualization of funding for the Waverley West Fire Station of $3.4 million. Manitoba also maintained the Winnipeg Strategic Infrastructure Basket at $93.9 million to support strategic capital projects across the city.

Government fully distributed $11.3 million in 2025/26 operating and maintenance funding to Northern Affairs Communities to support local administration, maintenance of critical infrastructure, and delivery of essential municipal services. In addition, the department fully allocated $3.8 million in capital funding to priority projects that support regulatory compliance in solid waste, water and wastewater infrastructure, and the installation of backup generators for water treatment plants.

Manitoba continues to work collaboratively with all levels of government to ensure that the North End Water Pollution Control Centre is completed to support new residential, commercial, and industrial processing capacity, as well as to remove

harmful contaminants from our water systems, including Lake Winnipeg. In 2025/26, Manitoba provided $30.8 million towards Phase 2 project implementation.

The Keystone Centre in Brandon has received 2025/26 provincial operating and capital funding totalling $1.775 million.

Budget 2025 introduced the One Manitoba Growth Revenue Fund, providing $12.4 million in new unconditional funding in 2025/26 for municipalities and Northern Affairs Communities to support core municipal services and local priorities.

The 2025/26 From the Ground Up – Safe Healthy Communities for ALL Program (FGP) committed up to $13.51 million, which included up to $12.29 million in approved funding for 208 projects under its application-based component and up to $1.22 million in approved funding for its Strategic Partnerships component. In 2025/26, the FGP Program paid out $13.47 million in grant funding.

The 2025/26 Urban/Hometown Green Team (GT) Program approved up to $7.6 million in funding for 614 projects. In 2025/26, the GT Program paid out $6.9 million in grant funding.

Manitoba continues to strengthen the arts and culture sector through targeted investments that support organizational sustainability and growth. In 2025/26, the Manitoba government provided the Manitoba Arts Council (MAC) with $13.95 million in funding, including an additional $250,000 for the Looking Forward program. Delivered in partnership with The Winnipeg Foundation, the program supports strategic planning, collaboration, and long-term sustainability for arts organizations.

In its first year, the program approved 21 projects and awarded $348,000 in grants. MAC fully distributed Manitoba’s $250,000 contribution in 2025/26. Under the agreement, The Winnipeg Foundation also contributed $250,000, of which $113,729 had been recognized and expended on program administration and grant delivery costs as of March 31, 2026.

Government provided over $1.26 million in support to 53 community and cultural festivals across the province including Northern Manitoba Trappers’ Festival, Manitoba Stampede and Exhibition, Folklorama, the Manito Ahbee Festival and Festival du Voyageur.

In 2025/26, $8.56 million in operating support was provided to public libraries through the Public Library Operating Support Grant. Funding included $3.27 million for the Winnipeg Public Library and $5.29 million for rural, northern and bilingual libraries. These investments supported expanded service hours, helped address critical staffing needs and enabled libraries to sustain and enhance services for Manitobans.

Manitoba opened or committed almost 11,800 new child-care spaces for children ages 0-6 and over 5,500 school-age spaces, totalling nearly 17,300 new child-care spaces throughout the province since the start of the Canada-Wide Early Learning and Child Care Agreement in 2021/22.

Government invested $30 million in permanent funding for the Universal School Food Program, including $22 million to school divisions and approximately $8 million to community organizations supporting nutrition programs for children and youth. In 2025, Nello’s Law amended The Public Schools Act to require all schools to provide free nutrition programs, grounded in principles of access, accommodation, equality, local delivery, and quality.

Government announced an additional $59.2 million investment in K-12 education for the 2025/26 school year, representing a 3.4 per cent increase in overall funding. The $59.2 million additional investment in K-12 education for the 2025/26 school year (Sept./25-June/26) represents $69.54 million in 2025/26 fiscal year (April/25-March/26).

Government invested $164.22 million in 2025/26 to design and construct new schools, additions and infrastructure renewal projects supporting enrolment growth and safe, modern learning environments. An additional $8.41 million

supported early learning and child-care expansion. In September 2025, three new schools opened: two K-8 schools in Sage Creek and one K-4 school in Steinbach. Construction continued for a new school and major additions in Seven Oaks, Brandon and Pembina Trails.

Government spent $73 million towards Your Way Home. Using this funding, Manitoba Housing, Addictions and Homelessness housed over 1,200 people, including 190 directly from encampments. The department also provided $7.65 million to support supportive housing for people exiting encampments, $5.3 million to support mobile Housing First teams for people experiencing homelessness and $2.2 million to support the creation of 96 new units of housing with supports.

In 2025/26, Manitoba Housing’s sponsor-managed portfolio received $2.7 million, resulting in the completion of 241 previously vacant units. Manitoba Housing’s direct-managed portfolio received $2.7 million, resulting in the completion of 224 previously vacant units.

In 2025/26, the Government invested in new housing supply to support the creation of up to 396 new social and affordable housing units and 88 congregate beds. The Department also fully expended its $78 million Modernization and Improvement and $44.8 million Repair and Maintenance budgets in 2025/26.

Government provided more than $8.4 million for wraparound support services. Support varied from residential care facilities to enhance care and prevent closure due to lack of funding, new social housing, and transitional housing which is still in progress. Funding for transitional housing was reallocated to support broader implementation of supportive housing programs within Manitoba Housing.

In 2025/26, planning continued to initiate supervised consumption services at 366 Henry Avenue. Funding supported program development for a temporary urgent public health need site (UPHNS) and full-scale supervised

consumption site. Manitoba has moved forward with issuing its own exception for the UPHNS.

Manitoba Housing, Addictions and Homelessness advanced the development and implementation of a suicide prevention strategy. Actions are being identified through evidence-based reviews, cross-departmental engagement, community engagement, and guidance from the Suicide Prevention Advisory Group.

Manitoba invested $138.5 million in Business Risk Management programs in 2025/26. Manitoba Agricultural Services Corporation (MASC) insured $4.54 billion in liability through AgriInsurance covering 9.9 million acres and over 7,100 farm operations, issuing $96.4 million in indemnities to Manitoba producers facing production shortages and quality losses. Additionally, $15.9 million in compensation, cost shared with the federal government, was paid for crop and livestock losses caused by wildlife under the Wildlife Damage Compensation Program. Manitoba Agriculture contributed an estimated $51.9 million towards AgriStability and AgriInvest combined for 2025/26 to help producers manage operations.

The Manitoba government expanded access to agricultural services with the opening of new MASC Service Centres in the communities of Shoal Lake and Virden. Since September 2025, farmers in Westman have been accessing insurance, lending and other agricultural services closer to home.

In 2025/26, Manitoba Agriculture invested almost $2.8 million to support research through the Agriculture Innovation Hub (AIH). AIH funds collaborative research and innovation projects

that advance Manitoba’s agricultural productivity, sustainability and value-added growth. In 2025/26, 36 basic and applied research projects were approved for funding through the Sustainable Canadian Agricultural Partnership and the AIH, representing an ongoing commitment of almost $5 million in combined federal and provincial funding to further research and innovation.

In 2025/26, Manitoba Agriculture provided $3.4 million in combined federal and provincial funding through the Sustainable Agriculture Manitoba program under the Sustainable Canadian Agricultural Partnership, supporting 158 projects that advance beneficial management practices to improve soil, water, air, and biodiversity outcomes while enhancing the sustainability and competitiveness of Manitoba agriculture.

MASC administers the Farmland School Tax Rebate program. For 2025/26, the program paid out an estimated $23 million in rebates to farm property owners, helping producers lower their operating costs.

In 2025/26, Manitoba Agriculture provided $540,000 in grant funding to 26 Veterinary Services Districts to support the operation of rural veterinary clinics and strengthen the recruitment and retention of veterinarians. This funding helped maintain access to essential veterinary services for livestock, poultry, and companion animals, supporting animal health, producer resilience, and rural communities across Manitoba.

Health and Post-Secondary Education Tax Levies thresholds were increased effective January 1, 2026. It is estimated this will benefit 900 employers with annual savings of $8.4 million, including fully exempting approximately 150 Manitoba employers from the tax.

In 2023/24, the Manitoba government increased the annual allocation of Manitoba seats at the Western College of Veterinary Medicine from 15 to 20. The five new seats are targeted towards rural-based practice. Manitoba Advanced Education and Training disbursed $8.3 million in 2025/26 to the

college as part of its obligations under the inter-provincial training agreement. 2025/26 was the third year of the expansion’s implementation, resulting in 75 total seats across all four years of the Doctor of Veterinary Medicine program at the college. Expansion will reach maturity in 2026/27.

Manitoba Business, Mining, Trade and Job Creation promoted careers in skilled trades to the next generation through Skills Canada Manitoba programming, reaching 9,076 students in 432 schools across Manitoba.

Manitoba Business, Mining, Trade and Job Creation delivered a range of employment services to 30,091 Manitoba job seekers. These included services offered at 12 department-led Manitoba Jobs and Skills Development Centres and through partnerships with community organizations across Manitoba. These services help ensure Manitobans have access to the career guidance and skills training needed to secure good jobs. Clients served included 7,545 Indigenous Manitobans, 13,950 young people under 30, 11,070 immigrants, and 4,706 persons with disabilities.

Government strengthened economic diversity and created the conditions for growth for Manitoba businesses by launching the Trade Growth Investment Financing program, which aims to support fixed asset and productivity enhancing investments by Manitoba businesses.

In 2025/26, the Export Support Program was doubled and $754,681 in funding was provided to support 80 Manitoba businesses to participate in 140 unique trade shows to help them expand the export of their products and services into new and more diversified markets.

In 2025/26, Manitoba invested an additional $2.5 million into the Manitoba Mineral Development Fund to support mining projects that accelerate early mineral exploration activities, create Indigenous partnerships, increase job opportunities, and stimulate investment in northern Manitoba.

The government provided $2 million to support the development of a low-emission magnesium processing facility at the Minago mine owned by Norway House Cree Nation, the first 100 per cent fully First Nation-owned critical minerals project in Canada.

Manitoba launched the Economic Development Strategy, a comprehensive roadmap that will guide government efforts to make life more affordable for families by enhancing productivity, strengthening the private sector, driving sustained growth, creating higher-paying jobs, and keeping more young people building their future in the province.

In 2025/26, Workplace Safety and Health (WSH) increased the number of WSH Officer positions from 52 to 56. It contributed to enhancing WSH’s capacity to conduct more workplace inspections to ensure improved compliance across Manitoba.

In 2025/26, The Workplace Safety and Health Act and regulation have been amended to strengthen worker protections, including promoting psychologically safe workplaces, authorizing a new penalty for failing to report a serious incident to WSH, enhancing medical surveillance authorities, enhancing protections from asbestos exposure for workers and the public, requiring large construction sites to provide hot water for handwashing, and mandating that employers provide free menstrual products.

In 2025/26, Travel Manitoba increased its marketing spending from $8.3 million to $11.9 million to support initiatives that encourage Manitobans to explore their own province, attract out-of-province visitors, and grow Indigenous tourism. Following the 2025 summer wildfires, Travel Manitoba allocated $1.35 million in the Wildfire Resilience Assistance Program, which provides eligible tourism operators with value protection equipment, FireSmart training, and tailored wildfire risk assessments. More than $700,000 was provided to Indigenous Tourism Manitoba to support operations, Indigenous tour guide training, and business development.

Budget 2025 committed $36.4 million over two years for the Port of Churchill and the Hudson Bay Railway. Government fulfilled its year one 2025/26 commitment and expended $17.2 million.

The Manitoba government provided a one-time $450,000 investment to CentrePort Canada Inc.

Manitoba Transportation and Infrastructure advanced key transportation infrastructure projects across the province, improving trade corridors, road safety, flood protection infrastructure, and transportation connections for communities, investing $792 million in 2025/26. Key projects include:

PTH 1E Twinning

PTH 75 Surfacing

PTH 1 & 5 Interchange

Outlet Channels

Rivers Dam

Emerson Pump Station

Wasagamack Airport

PTH 100 & St. Mary’s Interchange

PTH 100 & PTH 3(McGillivray) Interchange

Cooks Creek Bridge

Fish Creek Bridge

PTH 5 Surfacing

PTH 83 Surfacing

Main Drain Bridge

Significant rehabilitation work on the Souris River structure was completed on budget in the fall of 2025, helping to maintain a safe and reliable transportation network.

Construction of the new 24/7 Headingley weigh scale and traffic inspection station along with associated roadworks was substantially completed in 2025/26. The facility became operational in March 2026. Investments in inspection stations and enforcement tools help keep highways safe

for all road users while protecting Manitoba’s transportation infrastructure for the long term.

In 2025/26, the government continued to advance Indigenous-led economic development across Manitoba by supporting initiatives that strengthen business growth, workforce participation, community capacity, and long-term economic prosperity. The government worked with Indigenous partners to advance projects through key planning, development, and implementation stages, helping to create sustainable economic opportunities for Indigenous communities and businesses.

Manitoba and Canada partnered to deliver the largest wage increase to date for front-line early childhood education professionals in the province. The 2025/26 wage grid prioritized front-line educators, providing increases of up to $5 per hour, depending on certification level and the size of the child-care centre. The Manitoba government also delivered on its mandate commitment for a comprehensive workforce strategy, released in November 2025.

The Manitoba government continues to modernize access to health services through ongoing implementation of the secure plastic health cards and launching the new online Health Card Registration System Portal, making it easier for Manitobans to manage their health coverage information while improving the accuracy and security of health records. By replacing paper-based cards with durable plastic cards and launching the online self-service option, the government is reducing administrative barriers, improving service response times, and making health services more accessible for Manitobans. In 2025/26, the Manitoba government issued 19,856 digital health cards since the launch on January 12, 2026, and 604,790 plastic health cards. As of March 31, 2026, a total of 662,790 plastic health cards had been mailed since the initiative began on January 15, 2025.

The Manitoba government continued to advance key digital modernization initiatives in 2025/26, including the Fisheries Management System, Animal Welfare Case Management System, Birth and Death Registration Modernization, Spatial Data Infrastructure, and Veterinary Diagnostic System. Planning, development, and implementation work continued across these initiatives during the year as they progress toward future completion and launch. These projects remain underway, with work continuing to bring the new digital systems and services into operation.

The Manitoba government continued to modernize licensing services through the implementation of a new Manitoba-based digital platform to manage hunting, angling, forestry, park vehicle, and snowmobile permits. The new solution is intended to provide a more accessible online experience while supporting efficient and reliable licensing services for Manitobans. In 2025/26, the new platform was launched and transitioned into live service, making the new licensing system available to Manitobans.

The Manitoba government modernized wildfire management by implementing new cloud-based fire mapping and weather information applications. In 2025/26, the project was completed and transitioned to operations, replacing outdated systems with modern tools that provide 24/7 access to wildfire, weather, and resource information during Manitoba’s wildfire season.

Manitoba’s multi-year ERP modernization program continues to progress and has delivered benefits through the implementation of technology designed to improve contract management and the public sector employee learning management system within the government. The program will continue to modernize back-office functions within the public service, including major technology and process changes which will streamline human resources, payroll, finance, logistics and procurement functions for the province. The project achieved all

major milestones and the full implementation is currently on schedule.

The Tariff Response Hotline responded to 320 inquiries, helping local companies navigate the impact of new trade policies and tariff challenges.

The government collaborated with other provinces and actively participated in Canada–United States-Mexico Agreement (CUSMA) consultations to protect and grow Manitoba’s economic interests, while diversifying export markets and advancing international partnerships. Industry engagement sessions were held across all sectors to prepare for CUSMA discussions.

Manitoba signed new economic co-operation agreements with the governments of New Brunswick, Saskatchewan, British Columbia, and Prince Edward Island, to remove interprovincial trade barriers, create new opportunities, and increase labour mobility.

Government promoted Manitoba’s critical mineral opportunities by hosting trade show booths at two major energy conferences: Williston Basin Petroleum Conference and GeoConvention and two major mining conferences; AME Roundup and Prospectors & Developers Association of Canada, and delivered technical presentations at various geoscience conferences and co-chaired sessions at Central Canada Mineral Exploration Conventions and Geological Association of Canada-Mineralogical Association of Canada.

In response to U.S. tariffs, the government allowed the deferral of paying amounts due under retail sales tax and health and post- secondary education tax levy returns without interest and penalty. This measure, originally for a three-month period, was extended to six months (October 2025 tax returns), relieving financial pressures for participating Manitoba businesses.

Capital investments in health facilities were $676 million, which includes capital grants.

Capital investments in Manitoba’s highways and airport infrastructure totaled $504 million.

Capital investments in child care, K-12 schools and post-secondary institutions totaled $330 million.

Capital investments in housing totaled $115 million which includes $25 million in capital grants.

Capital investments in Manitoba Hydro infrastructure totaled $881 million.

Child care, schools, and advanced education – Variance is mainly due to extended timelines for project execution for child-care capital.

Other departments and other reporting entities – Variance is mainly due to unused funds held for contingencies.

Highways and airport infrastructure – Variance is mainly due to favourable tender results in the bidding process, and construction delays mainly due to longer stakeholder engagement, permitting and land acquisition process.

Manitoba Public Insurance – The majority of the variance is due to a pause and subsequent cancellation of Project Nova.

the summarized financial information presented in the accounts of Manitoba, maintained by the Provincial Comptroller; and

the detailed records maintained by departments, government organizations, government business enterprises, and government business partnerships.

the government’s financial position as at March 31 each year

the results of its operations for the year

what revenue it brought in and what it spent (e.g., annual surplus or deficit)

how much it borrowed, repaid or refinanced

how it obtained and used its funds

Net Debt as a Percentage of Provincial GDP – the relationship between a government’s net debt and the income in the economy

Net Debt-to-Total Annual Revenue – the extent to which future revenues are required to pay for past transactions or events

Net Debt per Capita – the relationship between a government’s net debt and its population is widely considered to be the best measure for cross-jurisdictional review of government and financial health; represents the net debt amount that is attributed to each Manitoba resident

Annual Operating Surplus (Deficit) – the extent to which a government is spending within its means

Annual Operating Surplus (Deficit)-to-Provincial GDP – the relationship between a government’s operating surplus (deficit) and the provincial economy

Public Debt Charges to Total Revenue – the extent to which borrowing decisions constrain a government’s ability to meet financial and service commitments

Own-Source Revenue to Provincial GDP – the extent to which a government is taking income out of the economy through taxation and user fees

Income Taxes increased by $817 million, or 14.7 per cent.

Other Taxes increased by $493 million, or 10.1 per cent. Notable items in this category include:

Retail Sales Tax increased by $153 million, or 5.4 per cent.

Education Property Taxes increased by $193 million, or 23.2 per cent.

Fuel Taxes increased by $221 million, reflecting the impact of the temporary fuel tax holiday in the prior year.

Fees and Other Revenue (including tobacco settlement revenue) decreased by $748 million, or 20.6 per cent. This is primarily attributed to tobacco settlement revenue decreasing by $846 million as no additional revenue related to the March 2025 tobacco settlement had been recognized during the year.

Recovery from government business enterprises and Other Investment Earnings decreased by $129 million or 8.8 per cent.

Volatility in economic factors such as inflation, interest rates and commodity prices

Geopolitical tensions and their repercussions to the global economy

Trade barriers including tariffs on imports and exports

Extreme weather events

Tax reforms in other jurisdictions that can materially shift tax planning and tax competitiveness

Changes in federal transfers

Unforeseen delays with planned capital investment due to environmental or other obligations

The financial performance of Crown corporations, especially Manitoba Hydro

Outcomes from litigation, arbitration, and negotiations with third parties

Utilization rates for government services such as health care, child and family services, or employment assistance

Changes in accounting standards

Key Fiscal Sensitivities

Variable

Annual 

Fiscal 

Impact 

Nominal

GDP

percentage

point

Debt

Income taxes were $341 million or 5.7 per cent higher than budget, including $217 million or 4.4 per cent higher individual income taxes and $124 million or 11.6 per cent higher corporation income taxes in comparison to the budgeted amount. Variances for both individual and corporation income tax reflect higher year-to-date assessments from the Canada Revenue Agency (CRA) at year-end in comparison to the information available at the time when Budget 2025 was prepared. The variance for individual income tax also includes a positive prior year adjustment.

Other taxes were $217 million, or 4.2 per cent higher than budget, primarily due to higher retail sales tax reflecting strong household spending on services, higher corporations taxes due to stronger profitability in the mining sector, higher education property taxes, higher fuel taxes reflecting stronger household fuel consumption, higher health and education levy revenues due to stronger compensation growth, and higher vaping tax revenues.

Fees and other revenue were $33 million or 1.2 per cent higher than budget largely due to an increase in pharmaceutical rebates and non-insured patient revenue and recoveries in the health sector partially offset by a decrease in Manitoba Agricultural Services Corporation revenue.

Endowment contributions were $35 million higher than budget, as this balance was recognized as part of revenue starting in fiscal year 2025/26 and thus, not considered for Budget 2025.

Recovery from government business enterprises and other investment earnings was $80 million, or 6.3 per cent higher than budget, primarily

reflecting higher than anticipated investment earnings.

Net income from government business enterprises was $629 million or 62.5 per cent less than the budget of $1,006 million.

Manitoba Hydro-Electric Board reported a net loss of $446 million, a decrease of $666 million from budget. The decrease was primarily due to drought conditions causing low reservoir storage levels, coupled with precipitation levels among the lowest on record during the summer months, resulting in lower export revenues and higher fuel and power purchase costs. Domestic electric revenue was also lower than budget due to lower consumption. Domestic gas revenue was also lower than budget due to the cancellation of the Federal Carbon Charge during the year.

Manitoba Public Insurance Corporation reported net income of $56 million, an increase of $47 million above budget. The increase was primarily due to higher volume of basic insurance policies in force, partially offset by lower commercial insurance demand, lower investment income, and higher corporate operating expenses.

Manitoba Liquor and Lotteries Corporation reported net income of $724 million, a decrease of $13 million. Actual results reflected softening video lottery performance consistent with other jurisdictions and decreases in liquor sales driven by lower per capita consumption, offset by higher revenues from cannabis, casinos and online gaming.

Federal government transfers were $250 million, or 2.8 per cent lower than budget, primarily due to lower shared cost and other transfers, including delays in expenditures under the Canada-Manitoba Canada-Wide Early Learning and Child Care Agreement related to post-secondary institutions and public school division capital projects. It is also due to delays attributed to the Investing in Canada Infrastructure Program (ICIP) due to supply and labour shortages.

Income taxes were $6,375 million, an increase of $817 million, or 14.7 per cent from 2024/25. This was primarily due to higher individual income tax revenue, reflecting year-over-year increases in GDP and employment income, which increased the taxable income base. The increase was partially offset by lower corporation income tax revenue, as 2024/25 included a positive prior-year adjustment.

Other taxes were $5,394 million, an increase of $493 million, or 10.1 per cent from 2024/25. This was primarily due to higher fuel taxes following the end of the fuel tax holiday on January 1, 2025, higher education property taxes reflecting higher education levies by school divisions, higher retail sales tax reflecting strong household spending, higher health and education levy due to increases in wages and salaries, and higher vaping tax

revenues. These increases were partially offset by lower corporations taxes.

Fees and other revenue, including tobacco settlement revenue, decreased by $748 million, or 20.6 per cent from 2024/25. This decrease was primarily due to the non-recurring $846 million tobacco settlement revenue recognized in 2024/25, partially offset by a $98 million increase in other revenue in 2025/26, which was primarily due to an increase in pharmaceutical rebates and non-insured patient revenue and recoveries in the health sector partially offset by a decrease in Manitoba Agricultural Services Corporation revenue.

Federal transfers were $8,680 million, an increase of $575 million, or 7.1 per cent from 2024/25. This increase included higher Equalization transfers due to legislated annual growth in the national Equalization envelope and an increase in Manitoba’s formula-based share, higher Canada Health Transfer revenue due to growth in the national Canada Health Transfer envelope and Manitoba’s per capita share, higher Canada Social Transfer revenue, and increased federal support for Early Learning and Child Care programs.

Net income from government business enterprises was $377 million, a decrease of $310 million or 45.1 per cent from 2024/25. The decrease was primarily due to Manitoba Hydro-Electric Board reporting a higher net loss in 2025/26, partially offset by improved results from Manitoba Public Insurance Corporation.

Manitoba Hydro-Electric Board’s net loss increased by $383 million compared to 2024/25, primarily due to the continued drought conditions resulting in some of the lowest water levels on record in Manitoba.

Manitoba Public Insurance Corporation reported net income of $56 million in 2025/26, compared to a net loss of $19 million in 2024/25. The increase was primarily due to higher volume of basic insurance policies in place, increased average premiums per policy, and normalization of expenses after one-time year-end adjustments in 2024/25.

Recovery from government business enterprises and other investment earnings decreased by $129 million or 8.8 per cent from 2024/25, primarily due to lower interest rates.

Emergency Expenditures were $222 million above budget primarily due to wildfire-related emergency response expenditures.

Families expenses were $99 million or 4.5 per cent higher than budget due to one-time year-end adjustments.

Environment and Climate Change expenses were $77 million, or 35.6 per cent higher than budget, primarily due to provisions for one-time year-end adjustments.

Health, Seniors and Long-Term Care expenses were $65 million, or 0.7 per cent higher than budget, primarily due to higher fee-for-service and Pharmacare costs.

Advanced Education and Training expenses were $46 million or 2.3 per cent higher than budget. This is attributed to pension valuation adjustments offset by lower expenses due to underfilled positions and the wind-up of the Manitoba Institute of Trades and Technology.

Agriculture expenses were $170 million, or 30.9 per cent below budget, primarily due to lower insurance indemnities resulting from reduced AgriInsurance claim volumes and favourable growing conditions in most parts of the province.

Municipal and Northern Relations expenses were $83 million, or 10.5 per cent below budget, primarily due to project delays in the Investing in Canada Infrastructure Program caused by supply chain issues and contractor/labour shortages.

Enabling Appropriations were $74 million, or 68.5 per cent lower than budget, mainly due to lower than anticipated expenditures on various environmental innovation projects, internal service adjustments, and other contingencies.

Justice expenses were $34 million, or 3.4 per cent lower than budget. This is attributed to the reduced impacts of contingent liabilities.

Tax credits were $28 million or 13.6 per cent lower than budget. This is attributed to lower disbursements for the Film and Video Production Tax Credit due to changes in projected sector activity after the budget period as well as delays on claims of large productions.

Health, Seniors and Long-Term Care expenses increased by $612 million, or 6.8 per cent, primarily due to increased funding to health authorities, including acute care, long-term care and home care. The increase was primarily due to wage increases related to collective agreements, higher fee-for-service physician costs driven by increased

price and service volumes, increased price and volume for Pharmacare, and higher financing costs.

Emergency Expenditures increased by $242 million, primarily due to wildfire-related emergency response expenditures.

Education and Early Childhood Learning expenses increased by $230 million, or 5.9 per cent, primarily due to higher school division salary and operating

costs, and increased costs for Early Learning and Child Care programs under the Canada-Manitoba Early Learning and Child Care Agreements.

Advanced Education and Training expenses increased by $186 million, or 9.9 per cent. This is primarily attributed to one-time adjustments for pension valuation as well as general salary increases, partially offset by reduced expenses from the wind-up of the Manitoba Institute of Trades and Technology.

Housing, Addictions and Homelessness expenses increased by $73 million, or 9.4 per cent, primarily due to increased Manitoba Housing operating expenditures, including increased homelessness spending, increased funding to health authorities for mental health services, and higher psychiatric services costs.

Municipal and Northern Relations expenses increased by $68 million, or 10.6 per cent, primarily due to increased grant funding distribution for the Investing in Canada Infrastructure Program and additional one-time grant funding provided to various organizations.

Innovation and New Technology expenses increased by $40 million, or 25.6 per cent, primarily due to increased expenditures for the ERP modernization project, including systems implementation costs and SAP software maintenance.

Justice expenses increased by $53 million, or 5.8 per cent, primarily due to fewer vacancies as well as higher expenditures on public safety initiatives offset by one-time year-end adjustments.

Transportation and Infrastructure expenses increased by $45 million, or 7.8 per cent, primarily due to grant funding for Hudson Bay Railway and CentrePort Canada as well as amortization from new capital assets purchased during the year, partially offset by lower expenditures in other program areas.

Tax Credits increased by $21 million or 13.4 per cent. This is attributed to increased claims for the Renters Affordability Tax Credit as well as an increase in the corresponding benefit amount.

Families expenses decreased by $564 million, or 19.8 per cent, primarily attributed to normalization of expenditures after 2024/25 one-time adjustments, and the closure of the Manitoba Developmental Centre in 2024/25. These decreases were partially offset by higher expenditures in Child and Youth Services, mainly due to increased funding for Child and Family Services Authorities, higher basic maintenance rates, investments supporting the transition to Indigenous service delivery, and a year-end adjustment for 2025/26.

Tobacco settlement expenses decreased by $425 million, as the tobacco settlement expense recognized in 2024/25 was a one-time adjustment related to the March 2025 tobacco settlement.

Agriculture expenses decreased by $125 million, or 24.8 per cent, primarily due to lower insurance indemnities resulting from reduced AgriInsurance claim volumes and favourable growing conditions in most parts of the province.

Public Service Delivery expenses decreased by $50 million, or 15.6 per cent, primarily due to lower Materials Distribution Agency expenditures related to prior-year write-offs which impacted the prior year comparatives and grants transactions.