NDP Bankrupting Manitoba; Deficit Double What Projected to $1.6 Billion
WINNIPEG — The Kinew government is forecasting continued deficit spending that will push the provincial debt to over $25,000 per Manitoban, which will lead to more NDP tax hikes on Manitoba families who are already struggling to make ends meet.
The province’s 2025-26 second quarter financial update today shows that the NDP have failed to reign in spending and are now projecting a much larger $1.7 billion, which is $867 million higher than the NDP’s own forecast in their spring budget. Manitoba’s net debt is expected to climb to over $38 billion this year, with debt servicing costs rising to well over $2 billion annually. Revenues are down by over $700 million due to NDP mismanagement and a struggling economy.
“The NDP have stalled Manitoba’s economy, squandered the $373-million surplus they inherited in 2023, and abandoned any path toward a balanced budget,” said Official Opposition Leader Obby Khan. “In just two years, they’ve destroyed any progress with a complete lack of action to support businesses or respond to the impacts of Chinese and U.S. tariffs. It’s been a dismal performance that has put Manitoba on an unsustainable path toward credit downgrades and more NDP tax increases.”
The report shows that Manitoba’s economic growth has fallen to second last across provinces as well. Manitoba’s consumer price index rose 3% in October 2025, among the highest inflation rates in Canada, and unemployment has continued to hover around 6% this fall, which is 2% higher than in 2022.
NDP mismanagement is also wearing on everyday Manitobans, who are facing some of the highest foodflation in the country, according to Statistics Canada, with grocery prices only worsening. Projections show that the average cost of feeding a family of four could rise by nearly $1,000 in 2026. Families with children now make up 45% of food bank users in Manitoba, a 40% increase from five years ago, per Harvest Manitoba.
This follows the last two years of the Kinew government taking more money out of Manitobans’ pockets. The NDP plan to continue that agenda into the new year, including hiking property taxes, income taxes, Hydro rates, MPI rates, and more.
“Everyday Manitobans are struggling to make ends meet, and the root cause is government-driven price hikes,” said Midland MLA Lauren Stone, PC Critic for Finance. “More working families are using food banks than ever before. They deserve answers as to why Wab Kinew and his finance minister have broken their promise to not raise taxes.”
In total, the NDP have sneakily raised taxes by more than $400 million on Manitobans, amounting to much more than Greg Selinger’s PST hike.
This year, the Kinew government quietly stopped indexing income tax brackets to inflation. That means if a Manitoban receives a wage bump to keep up with the cost of living—which is not an actual pay raise—they are now unprotected from being automatically knocked into a higher tax bracket. This move has cost Manitobans $82-million more in taxes this year, a number that will grow every year.
The NDP also scrapped PCs’ 50% School Tax Rebate, costing Manitobans $330 million more. About 55% of Winnipeg homeowners and property owners are paying higher property taxes under the new system. With that, middle-class Manitobans are now paying the highest taxes in Western Canada, according to the Canadian Tax Federation. Property taxes and special charges in Manitoba soared by 19.5% year-over-year in 2025—by far the biggest jump in Canada.
“Despite receiving more than a billion dollars annually in growing transfers and revenues from the Liberal government, the NDP continue to spend beyond their means,” said Stone. “As the NDP continues to tank our economy, the deficit will persist, debt will rise, and the province will be forced to borrow even more money adding interest costs Manitobans simply cannot afford.”
“Finance Minister Adrian Sala’s failure to control spending, grow the economy, or keep his promises show Manitobans how little they can trust the NDP to protect their future.”
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