On January 28, 2026, Progressive Conservative MLA Derek Johnson warned residents in Morris, Manitoba, to prepare for a tight year as provincial budget pressures — including a Budget 2025 projection of a $794 million deficit — continue to squeeze local services. Johnson told a community meeting that the sunsetting of one‑time relief measures and rising government debt are making financial challenges more acute for households and agricultural producers in the region. (A December 2025 mid‑fiscal‑year update later projected a larger shortfall of about $1.6 billion.)
Starting January 1, 2026, the Government of Manitoba began applying its 7% Retail Sales Tax (RST/PST) to a range of cloud and digital services — including software subscriptions, online storage and remote processing — under measures announced in the 2025 budget. Tax advisers at Ryan and other firms have noted that the RST expansion will make subscriptions for software, data storage and remote processing subject to tax, adding new costs for businesses that rely on those services. The province has also increased some tax credits — raising the Homeowners Affordability Tax Credit to a maximum of $1,600 and the Renters Affordability Tax Credit to a maximum of $625 for 2026 — but some residents and local leaders say those measures may not fully offset rising expenses such as food and heating.
Recent reporting from CBC and analysis by EY highlight Manitoba’s elevated debt load and the fiscal pressures complicating the government’s path back to balance. Municipal leaders — including Morris Mayor Scott Crick — have raised concerns about ‘unfunded mandates’ and warned that, if provincial support for roads, policing and other services does not keep pace, municipalities may have to consider changes to their own spending or taxes.
Johnson also noted the end of several temporary relief payments has made current costs more noticeable for families and farmers in the area. The provincial government is expected to release its full 2026 spending plan later this spring, which will provide a clearer picture of funding available to rural communities for the rest of the fiscal year.
