The Manitoba government is offering out modest tax relief for families and businesses in its provincial budget delivered Monday.

Middle-income earners will reap the bulk of $32.3 million in personal income tax cuts, with a family of four earning $60,000 paying about $319 less a year in 2007.

However, all homeowners in the province, no matter what their income, will benefit from the long-promised elimination of a property tax used to fund education, accounting for a total savings of about $34 million.

In addition to personal and property tax breaks, the corporate income tax rate will fall to 14% on July 1, 2007, while the small business tax will drop to 3% on Jan. 1, 2007.

Finance Minister Greg Selinger said the government is projecting a $148 million surplus on a $8.6-billion budget.

The government is withdrawing $69 million from its rainy-day fund, which Selinger said will primarily be spent on this year’s share of a three-year, $60 million funding plan for universities and colleges that includes a tuition freeze.

Overall government departmental spending will increase by 6.8%.