WINNIPEG -- The first budget by the new Progressive Conservative government in Manitoba contains some small tax tweaks and an initial step toward a balanced budget.

Seniors with middle and high incomes are to see smaller school tax rebates under a new income-testing system.

The rebate is to be reduced for seniors with a family income of more than $40,000, and cut entirely for those earning more than $63,500.

There is one tax break in the budget -- personal income tax brackets are to rise each year along with the rate of inflation, as is the case in most other provinces.

Finance Minister Cameron Friesen is forecasting a deficit of $911 million, down $100 million from last year.

He says the budget will be balanced, but it will take eight years.

Friesen is also promising to start cutting ambulance fees this year and eventually reduce them by half.

The budget enacts an election promise to eliminate a public subsidy for political parties, which the previous NDP government introduced.