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Thursday is budget day in Manitoba, and many political observers are watching to see whether there will be a long-promised tax cut that would lead to an early election.

The Progressive Conservative government vowed in the last election campaign to cut the provincial sales tax to seven per cent from eight per cent before the end of its first term.

READ MORE: Budget battle continues between Winnipeg and the province

The next election is slated for Oct. 6, 2020, but Premier Brian Pallister has not ruled out calling an earlier vote.

Opposition Leader Wab Kinew says if the sales tax cut comes Thursday, an election will very likely be called early.

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Liberal leader Dougald Lamont has said he expects an election could come as early as this spring.

The governing Tories continue to lead in opinion polls and fundraising, but Kinew says his party will be ready if an election is called in the coming weeks or months.