Manitoba’s 2026/27 Budget

Tuesday, March 24 – Manitoba’s Minister of Finance tabled Budget 2026, outlining total expenditures of approximately $27.3 billion against revenues of approximately $26.9 billion, resulting in a budget plan deficit of $498 million. This figure excludes financial contingencies, which are becoming an increasingly material cost driver in the context of worsening wildfire seasons and ongoing global economic uncertainty.

Budget 2026/27, the government’s third budget delivered roughly one year before the next election reflects a continued focus on demonstrating delivery against its 2023 commitments, particularly in health system stabilization and fiscal discipline. The government’s approach to health care remains centred on expanding frontline workforce capacity and service volumes, supported by targeted capital investments in health infrastructure. This approach is complemented by incremental modernization through the implementation of hospital operational initiatives and the rollout of a province-wide digital health platform.

Overview

• Deficit reduced from prior year, return to fiscal balance threatened by contingency spending: The province projects a total deficit of $1.7 billion, which includes $1.2 billion in contingency funding to account for external risks. On a budget plan basis, which excludes these contingencies, the deficit is $1.2 billion lower than the previous year, with surpluses projected over the subsequent two years of the fiscal plan.

• Health and seniors care dominates spending growth: Total health and seniors care spending is projected at approximately $10.59 billion, representing the largest share of program spending and a continued upward trajectory year-over-year. Health and seniors care now occupy 39% of the total budget.

• Workforce expansion is the primary policy lever, with 1,255 net new health workers added in the past year: A significant portion of new health funding is directed toward recruitment, retention, and training of health professionals, positioning health human resources (HHR) as a central pillar of the province’s health system rebuild.

• Measured capital expansion within fiscal constraints: The province maintains a multi-year capital plan of approximately $3.8 billion, including targeted investments in health infrastructure, long-term care, and hospital upgrades totalling approximately $600 million.

• Affordability measures remain politically central: Budget 2026 includes enhancements to affordability programs, including increases to the Homeowners Affordability Tax Credit (up to $1,700), removal of PST on food, and continued cost-of-living supports. 

Santis Insights

• The Manitoba budget reflects a government entering the latter half of its first term, with a clear emphasis on demonstrating delivery against its 2023 commitments. Much of the narrative is backward-looking, highlighting progress made to date rather than introducing fundamentally new policy directions. This is most evident in health care, where the government repeatedly points to the recruitment and training of more than 4,000 net new health care professionals as a central marker of success.

• The budget also reflects a government focused on following through on key election commitments, particularly with respect to fiscal management. The Manitoba New Democratic Party (NDP) campaigned on a return to fiscal balance, and Budget 2026/27 demonstrates meaningful progress toward that objective, with future projected budget plan surpluses. However, it is important to note that the province is likely to continue operating in an overall deficit position due to rising costs associated with annual wildfire emergencies. In addition, recent trade disruptions with the United States contributed to a significantly worse-than-projected 2025/26 deficit, and any further escalation presents a material risk to the province’s fiscal outlook.

• As is consistent with most provincial NDP governments, Manitoba continues to rely heavily on HHR and health capital investment as its primary levers for system improvement. The scale of recruitment efforts is notable and has yielded measurable gains.

• However, unlike some peer jurisdictions, Manitoba has also maintained a parallel focus on incremental system modernization. This is reflected in continued investments in pharmacare, the rollout of a provincial electronic medical record (EMR) system, and targeted operational improvements in emergency departments. These initiatives suggest a government that is pairing workforce expansion with selective system optimization, rather than relying exclusively on labour inputs.

• At the same time, the budget reinforces that Manitoba remains in a system stabilization phase rather than a transformation phase. Investments are primarily directed toward increasing capacity, including more staff, more beds, and more procedures, rather than fundamentally redesigning care delivery models or accelerating large-scale digital innovation. Structural challenges, particularly in primary care access and system coordination, remain largely unaddressed.

• Politically, Premier Wab Kinew continues to operate from a position of strength, maintaining one of the highest approval ratings among Canadian premiers. Early reaction to the budget has been broadly positive, particularly with respect to affordability measures and visible reinvestment in frontline services. The government’s approach, which combines moderate fiscal expansion with targeted system improvements, positions it well heading into the next election cycle.

• Finally, Manitoba’s relatively strong fiscal position, including one of the lowest debt-to-GDP ratios among provinces, provides the government with continued flexibility in the near term. However, this flexibility is increasingly being absorbed by health spending growth and climate-related risks, suggesting that more difficult fiscal trade-offs may emerge beyond the current mandate.

Health Care Highlights 

Budget 2026 is a continuation of  Manitoba’s multi-year effort to rebuild system capacity, with targeted investments across workforce, infrastructure, and service delivery.

• Workforce recruitment and retention:
  • Of the $1.2 billion in new health care investments, $770 million is allocated to staffing, including wage increases and recruitment efforts. 
  • Since the Manitoba NDP formed government, 4,054 net new frontline health care workers have been added to the system. This includes 1,255 in the past fiscal year, including 1,423 nurses, 1,681 health care aides, 489 allied health professionals, 317 doctors, 81 residents, and 63 physicians and clinical assistants since 2023.

• Training and education expansion:
  • Funding supports the expansion of training capacity across health professions, including new seats in physician residencies, nursing, and diagnostic programs.
  • Creation of more pathways for licensed practical nurses to become registered nurses. 
  • $14.6 million in new capital funding for the new University of Manitoba Bannatyne Campus Facility in Winnipeg, which will train new doctors and nurses in programs across medicine. 
  • Doubling the amount of students training as combined laboratory and X-ray technologists at Saskatchewan Polytechnic.

• Spotlight on women’s health care:
  • Breast cancer screening age lowered in January 2026 to women aged 45 and above, with a plan to further lower to 40 by the end of the year. 
  • $1 million in support to the Ovarian Cancer Canada and MB Ovarian Cancer Research group to fund peer-reviewed MB-based projects. 
  • Building a new menopause clinic in south Winnipeg.

• Surgical and diagnostic capacity expansion:
  • Targeted funding is allocated to increase surgical volumes and diagnostic services, with the goal of reducing waitlists and improving throughput.
    • The government is reporting record numbers of surgeries across the system. More than 7,000 joint replacement procedures were performed at Selkirk Regional Health Centre, a new provincial record. 
  • $1.7 million to add 200 additional hip and knee surgeries. 
  • $1.2 million to support 3,250 additional elective MRI procedures to be performed outside of regular operating hours at multiple sites.

• Lowering emergency room (ER) wait times and hospital capacity growth:
  • Continuation of the expansion of acute care capacity, including the addition of new hospital beds and investments in emergency department upgrades.
  • Addition of 384 new fully staffed beds. 
  • Continuation of the Reducing Access Block at Triage (RABAT),  an ER flow initiative designed to improve the time it takes for patients to be assessed by a physician when they first arrive at the ED. 
  • Ward Efficiency Initiative focused on in-patient units and how quickly patients can be moved through hospital wards and discharged. 
  • Creation of specialized patient zones adjacent to ERs, where patients with unique needs can be seen by specialists right away, reducing overall congestion in the ER. 
  • Introduction of alternative level care (ALC) beds for patients who still need care but are well enough to leave the hospital. Budget 2026 allocates $2.3 million to open 32 beds at Siloam Mission, building on the 96 ALC beds that have been added across the province since 2023. 
  • Addition of social workers into ERs and urgent care settings to ensure a safe discharge.

•  Long-term care and seniors supports:
  • Funding supports expanded long-term care capacity and increased direct care hours, reflecting demographic pressures and system demand. 
  • Reopened 145 of the 222 personal care home (PCH) beds that were closed under the previous government. 
  • Over $70 million in funding to build new PCH beds, including construction projects at Lac du Bonnet, Arborg, Transcona, and, announced in this budget, Bridgwater.

• Mental health and addictions services:
  • Continued investment supports expanded access to mental health services, with integration into broader health system funding.
  • Creation of a protective care centre to provide treatment for people in meth psychosis and other forms of intoxication. 
  • Construction of a new supervised consumption site in downtown Winnipeg. 
  • More than 1,500 treatment spaces have been created since the NDP formed government in 2023. 
  • Ongoing review of the Mental Health Act with the goal of streamlining referrals by expanding the professions that can assess patients for involuntary admission to treatment facilities.

• Digital health investments:
  • Targeted funding supports the continued rollout of EMR systems and digital infrastructure. This year will see the full implementation of a new digital front door that will provide Manitobans with a single access point for appointments and secured personal health information. 
  • New funding in digital care has been already committed to the implementation of this initiative and there is very little discretionary funding available.

• Pharmacare growth:
  • Moderate increase of $139.2 million (3.6%) to the pharmacare program, supporting expanded coverage and rising utilization, especially for diabetes, cancer, and HIV patients.

• Capital projects:
  • Budget 2026/27 invests more than $600 million in health-related capital projects, including:
    • New Emergency Rooms at Victoria Hospital (Winnipeg) and Elizabeth M. Crowe Memorial Hospital (Eriksdale)
    • New personal care homes in Bridgwater, Transcona, Lac du Bonnet, and Arborg
    • Manitoba Menopause Clinic
    • Cardiac Centre of Excellence at the St. Boniface Hospital
    • Regional health centres in Portage, Neepawa, and Brandon
    • Site assessments and design work for new CancerCare Manitoba headquarters

Further Reading

• Explore the full budget release online here.