No help for struggling Ontarians, nothing for COVID in record-spending budget
Posted March 23, 2023 4:01 pm.
Last Updated March 23, 2023 5:47 pm.
The Doug Ford government has tabled the biggest spending budget in Ontario history at $204 billion, but there is no new funding for individual Ontarians struggling with high inflation, and zero money set aside for COVID-19.
Instead, there is funding for big capital projects like building highways, but few details on how it will be spent.
Awash in revenue, the government plans to balance the budget next year, three years ahead of schedule.
Big Spending On Big Things
The 186-page budget called “Building Ontario” sets aside $25 billion in new capital expenditures over 10 years, part of planned infrastructure spending of more than $184 billion over the next decade.
It includes money to build new highways like the proposed Highway 413, though the government does not provide a cost estimate for that highway.
Balanced Books Soon
The government has charted a path to balance. It’s expecting to run a deficit of $1.3 billion this fiscal year, but starting next year Ontario will be back in the black, with a modest surplus of $200 million expected.
Finance Minister Peter Bethlenfalvy called this a “more than a strong fiscal record.”
“While uncertainty persists, this puts us in a position of fiscal strength.”
Higher government revenues spurred on by higher inflation are helping the government to balance the books.
Nothing for struggling individuals
The record spending financial plan sets aside no new money for those struggling with high inflation. The document instead reiterates previous government initiatives like the temporary lowering of the provincial gas tax.
COVID-19 Over?
The government is setting aside no money for COVID funding. The government does maintain a multi-billion dollar contingency fund of unallocated money.
Cannabis Revenues Far From High
The government is expecting to make less money from cannabis. Income from the cannabis store is expected to fall by $31 million, largely the result of weed price cuts by the OCS.
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Health Care
Health spending is expected to rise by $3.2 billion in actual dollars but remains about the same in terms of its percentage of the budget. The government is setting aside $72 million for the community (private) surgical centres.
The budget also lays out $48 billion for hospital infrastructure over the next 10 years, $569 million more for home care, and $425 million over three years for mental health and addiction
Education
Education spending is forecast to rise by $1.4 billion. There are $15 billion in capital grants set aside over 10 years to expand and renew schools and to help create 86,000 new childcare spaces by December 2026.
Seniors
The budget lays out plans to make more seniors eligible for the Guaranteed Annual Income System (GAINS) program. Starting in July 2024, 100,000 additional seniors eligible for the program by way of the income threshold being lowered, though the government won’t say what the new threshold will be.
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Nothing For Toronto
There is no new money to help Toronto cover its budget shortfall.
Housing
$202 million a year is being set aside for supportive housing, much of it will end up with the city of Toronto the government says, but it provided no details.
Ring Of Fire
The government is spending $1 billion to develop the ring of fire — the mineral deposits in northern Ontario
Skilled Trades
As previously announced, $224 million is earmarked for skills trade training.
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