The Trudeau government unveiled its annual budget Tuesday afternoon, with $535 billion in spending ($11.5 billion of which is new) and a projected $39.8-billion deficit.
In the weeks leading up to Tuesday’s tabling of the document, the federal Liberals unveiled significant planks of the budget, including pledges for more homes, expanded child care, a beefed-up military and dollars to grow the country’s artificial intelligence capacity.
The Free Press has compiled reaction:
Winnipeg Mayor Scott Gillingham
MIKAELA MACKENZIE / FREE PRESS FILES
Winnipeg Mayor Scott Gillingham.
Before the budget was unveiled, Gillingham said he would be looking for funding that “enables growth” and supports housing.
“It’s important for us to get housing built, but every house needs a water pipe and a sewer pipe and a sidewalk or a road. It’s that enabling infrastructure that also has to be built,” he said during an unrelated press conference Tuesday.
After the budget documents were released, the mayor said in a statement while he’s pleased to see a focus on housing, he remains disappointed there’s been no movement toward a permanent funding model among the federal, provincial and municipal governments so dollars can be better accessed for projects such as the upgrades promised for the North End Water Pollution Control Centre.
“I have asked the federal government before that they permit some flexibility when it comes to funding so that any new envelope of funding that they would roll out could be used to stack on previous funding granted,” he said. “That’s something all cities need.”
Manitoba Finance Minister Adrien Sala
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NDP Finance minister Adrien Sala.
The Trudeau government plans to address the housing crisis by converting underused federal land and buildings to mixed-use housing.
Sala said the province sees an opportunity to combine provincial and federal budget promises to help Manitobans access affordable housing.
Sala applauded new clean energy tax credits, which will be available to Crown corporations, as the benefits will keep costs low for Manitobans.
“By allowing us to meet our energy needs in a way that will minimize the costs associated with new generation… that will help us to deliver lower rates,” he said.
However, the budget missed the mark on infrastructure funding, he said.
University of Winnipeg economics professor Philippe Cyrenne
Cyrenne said the sluggish economy leaves no room for spending without aggravating inflation, so the decision to rely on higher taxation for wealthy Canadians and businesses as a means for revenue generation is no surprise.
Cyrenne said the decision to increase the capital gains tax rate will likely play better politically than economically, but it remains to be seen what sort of pushback the plan will receive.
“(The Liberals) are really caught in a bind,” he said. “They went through… massive spending during the COVID period and now they’re trying to retrench a little bit, but they really don’t have many places left to tax.
“They’re responding to their own decisions, they’ve got nobody to blame but themselves.”
Association of Manitoba Municipalities president Kam Blight
Matt Goerzen/The Brandon Sun Files
Kam Blight, Association of Manitoba Municipalities president.
“(The AMM) welcomes the new $6-billion Canada Housing Infrastructure Fund, which includes $1 billion available directly to municipalities to support urgent infrastructure needs that will directly enable housing supply,” Blight said in a statement.
“Furthermore, as Manitoba municipalities grapple with a billion-dollar water and wastewater deficit, we appreciate the federal government’s commitment to funding essential infrastructure… to continue growing our communities.”
Blight said the budget falls short of addressing escalating crime rates and public-safety challenges.
Canadian Taxpayers Federation federal director Franco Terrazzano
The CTF criticized the budget for hiking taxes, increasing spending and allowing the deficit to balloon to $40 billion.
“Massive deficits mean interest charges will cost taxpayers more than the feds send to the provinces in health transfers this year,” Terrazzano said in a statement, adding the government has no plan to balance the budget or save Canadians money.
“Finance Minister Chrystia Freeland promised Canadians she would find savings, but when you increase spending by more than $30 billion in one year, you’re saving money wrong.”
Conservative MP Raquel Dancho, Kildonan-St. Paul
Adrian Wyld / THE CANADIAN PRESS FILES
Conservative Party MP Raquel Dancho.
Dancho said the budget continues the Liberals’ record of high taxes and inflationary spending.
“The Liberals are failing to address the needs of Manitobans,” she said in a statement.
“Since last year, crime in Winnipeg has become 20 per cent more violent. Rent for an average one-bedroom apartment jumped 26 per cent since 2023. Winnipeg food banks are seeing unprecedented demand with over 50,000 Manitobans visiting a food bank in only one month last year. Premiers from all over Canada, including Manitoba, asked the Trudeau Liberals to pause their April 1st carbon tax hike in order to give Canadians a break, but they were ignored.”
nicole.buffie@freepress.mb.ca
Nicole Buffie
Multimedia producer
Nicole Buffie is a multimedia producer who reports for the Free Press city desk.