Mixed bag reaction – Winnipeg Free Press

The Trudeau government unveiled its annual budget Tuesday afternoon, with spending of $535 billion ($11.5 billion of which is new) and a projected deficit of $39.8 billion.

In the weeks leading up to Tuesday's document, the federal Liberals unveiled key budget planks, including guarantees for more homes, expanded child care, a beefed-up military and dollars to boost the country's artificial intelligence capabilities.

The Free press compiled the reaction:

Winnipeg Mayor Scott Gillingham

Before the budget was announced, Gillingham said he would seek funding that would “enable growth” and support housing.

“It's important for us to build housing, but every house needs water and sewer and a sidewalk or road. It is necessary to build the infrastructure that will enable this,” he said at a press conference on Tuesday.

After the release of the budget documents, the mayor said he was pleased with the focus on housing, but he was disappointed that there was no movement among the federal, provincial and municipal governments toward a sustainable funding model so dollars could be better accessed. Projects like promised upgrades to the North End Water Pollution Control Center.

“I've asked the federal government to allow them some flexibility in terms of funding so that any new envelope of funding that they distribute can be used to build on previous funding,” he said. “It's something that all cities need.”

Manitoba Finance Minister Adrien Sala

The Trudeau government plans to address the housing crisis by converting underutilized federal land and buildings into mixed-use housing.

Sala said the province sees an opportunity to combine provincial and federal budget pledges to help Manitobans access affordable housing.

The industry has welcomed the new clean energy tax credits available to Crown corporations because the benefits will reduce costs for Manitobans.

“By allowing us to reduce the costs associated with new generation of our energy needs … will help us deliver lower rates,” he said.

However, the budget fell short of infrastructure financing, he said.

Philip Kieren is a professor of economics at the University of Winnipeg

Kieren said a sluggish economy leaves little room for spending without fueling inflation, so the decision to rely on higher taxes as a means of generating revenue for wealthy Canadians and businesses is not surprising.

Kieren said the decision to raise the capital gains tax rate would be better politically than economically, but it remains to be seen what kind of impetus the plan will have.

“(The Liberals) are really stuck,” he said. “They've … experienced massive spending during the COVID period, and now they're trying to cut back a little bit, but they don't have a lot of tax room left.

“They are responsible for their decisions, they have no one to blame but themselves.”

Cam Blythe, president of the Association of Manitoba Municipalities

“(AMM) welcomes Canada's new $6 billion Housing Infrastructure Fund, which includes $1 billion available directly to municipalities to support urgent infrastructure needs that directly enable housing,” Blythe said in a statement.

“Furthermore, as Manitoba municipalities grapple with billion-dollar water and wastewater shortages, we appreciate the federal government's commitment to funding critical infrastructure to further develop our communities.”

Blythe said the budget is not enough to deal with rising crime and public safety.

Franco, federal director of the Canadian Taxpayers Federation Terrazzano

The CTF criticized the budget for raising taxes, increasing spending and allowing the deficit to balloon to $40 billion.

“Massive deficits are costing taxpayers more than federal health care transfers,” Terrazzano said, adding that the government has no plan to balance the budget or save Canadians money.

“Finance Minister Chrystia Freeland has promised savings to Canadians, but when you increase spending by more than $30 billion a year, you're right to save money.”

Conservative MP Raquel Dancho, Kildonan-St. Pavel

Dancho said the budget would continue the Liberals' record of high taxes and inflationary spending.

“The Liberals are failing to meet the needs of Manitobans,” he said in a statement.

“Since last year, crime in Winnipeg has become 20 percent more violent. The average one-bedroom apartment rent has increased by 26 percent since 2023. Food banks in Winnipeg are seeing unprecedented demand, with more than 50,000 Manitobans visiting the food bank in one month last year. Premiers from across Canada, including Manitoba, have asked the Trudeau Liberals to stop the April 1 carbon tax hike to give Canadians a break, but they have been ignored.”

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Nicole Buffy
Multimedia producer

Nicole Buffy is a multimedia producer reporting to the Free Press city office.

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