Budget Day in Ontario

The Liberals say the projected deficit is $5.7 billion – that’s $1.8 billion lower than what was forecast in the fall economic update – making it the seventh year in the row they beat deficit targets.

“For years, students have been sounding the alarm over rising tuition fees and student debt loads that block far too many Ontarians from accessing college and university education”, said Rajean Hoilett, Chairperson of the Canadian Federation of Students-Ontario. In addition, more than half of students from families earning $83,000 or less annually will receive grants that will more than cover their tuitions. The government says fighting the underground economy and managing program spending are key to helping get the province back in the black in 2017-18.

The Canadian Federation of Students applauded the move in an era in which students graduate with “mortgage-sized” debt.

The Ontario Student Grant will be funded by redirecting all funding dedicated to the “30% off” Ontario Tuition Grant, the Ontario Student Opportunity Grant, Ontario Access Grants and other grants offered through OSAP. But the Liberals are also increase drug costs for low-income seniors. There will also be increases to the price of wine and cigarettes.

There will also be annual increases of about 10 cents in the tax on international-blend wines sold in privately owned wine stores, increasing from 16.1 cents to 20.1 cents over four years.

Drummond says the bulk of the money earmarked for infrastructure is likely to go to provinces hit hardest by the drop in the price of oil, but “some will come our way”.

“Maybe they’re hoping that sin taxes, people think they’re justified, but the truth of the matter is…they’ve overcommitted on spending promises, they don’t have the political courage to reduce expenses, so they’re turning around to consumers”, said Christine Van Geyn.

While NDP Leader Andrea Horwath noted her party has long called for cap-and-trade, she expressed concern at the Liberal plan.

Premier Kathleen Wynne insists the $7.5-billion deficit will be eliminated by 2017-18 as promised, something credit rating agencies will be watching very closely.

“Cap-and-trade is a new revenue grab for the government”, Brown said.

Wynne’s government also said the current fiscal year will mark the high water mark for the province’s debt load, with the ratio of its net debt to the size of its economy, a measure of how well it can afford what it owes, peaking at 39.6 percent.

The deficit is projected to shrink to $4.3 billion in this fiscal year.

It’s effectively a green shift that will mean higher costs just as the Ontario Retirement Pension Plan begins in 2018, which will affect all employers and employees who do not have a workplace pension.

“As Ontario enters the next phase of relations with the federal government, it is seeking to build a shared agenda for economic growth and transformation and will continue to champion principles-based partnerships”, writes Ontario’s 2016 budget.

Other health care initiatives by the Liberals include providing $75 million for palliative care, $130 million for cancer care service and $333 million for child and youth autism.