Ontario‘s Finance Minister, Peter Bethlenfalvy, recently presented the province’s $214-billion budget at Queen’s Park, emphasizing investments in housing, infrastructure, and public services amidst economic uncertainty. The 200-page financial blueprint forecasts a major deficit increase to $9.8 billion in 2024-2025, marking the highest non-COVID deficit since former Premier Kathleen Wynne’s 2014 spending plan. The new budget envisions Ontario only returning to balance by 2026-2027, with a projected surplus of $500 million.
Last year’s budget had anticipated a modest $200 million surplus by 2024-2025 but revised economic growth projections led to higher deficits. As interest rates and inflation remain pressing factors, GDP growth is anticipated to slow to 0.3% in 2024 before gradually recovering to 2.2% by the election year. Inflation is projected to dip from 3.8% to 2.6% in 2024, aligning with the Bank of Canada‘s target rate.
While some critics, including NDP Leader Marit Stiles and Ontario Liberal Party Leader Bonnie Crombie, have criticized the budget for not addressing cost of living challenges and health care shortages, the government has allocated additional funds for home and community care, mental health services, and infrastructure development. Notably, investments in York University‘s medical school and nursing student enrolment aim to address physician and nurse shortages.
The budget also highlights plans to enhance high-speed internet access, modernize the auto insurance system, and support housing initiatives with over $1.8 billion in funds for municipal infrastructure development. Moreover, Ontario’s commitment to mental health and addiction recovery, along with measures to assist seniors through the GAINS program, signifies a comprehensive approach towards social welfare amidst economic challenges.
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