The Ontario government led by Premier Doug Ford has introduced its 2021-22 budget, with an annual deficit of $33.1-billion projected as heavy spending continues to support people, businesses and the economy through the pandemic.
“Hope is on the horizon. At community centres, doctors’ offices, pharmacies and hospitals across our great province, Ontario’s healthcare heroes are delivering vaccines that will help us get back to normal,” said Minister of Finance Peter Bethlenfalvy. “That is what hope looks like … but our difficult voyage is not over.”
“Land is in sight, but waters remain troubled as we are now in a race against time: vaccines vs. variants,” continued Bethlenfalvy. “And the government’s job, to protect you the people of Ontario, is not yet done.”
In all, the Progressive Conservative government’s spending plan for 2021-22 tops $186-billion.
More than $2.1-billion is earmarked for hospitals to help address a backlog of surgeries. Over $650-million will be spent on long-term care to help with staffing. The province is also setting aside more than $2.3-billion for contact tracing and Covid testing.
Also included in the provincial budget is another round of cash grants for businesses hard-hit by shutdowns, while parents are in line for a third round of direct payments from the province.
According to reports, the province will spend $1.7-billion to provide grants between $10,000 and $20,000 to businesses who can show their revenue was impacted by lockdown measures.
Bethlenfalvy said the provincial government will be doubling the amount it is giving to parents of young children in a third round of direct payments, to $400 per child or $500 for kids with special needs.
Young families with children in daycare will also get more dollars from the province, as it is raising the Ontario Child Care Tax Credit.
Bruce-Grey-Owen Sound Progressive Conservative MPP Bill Walker said: “We want to, as we have all the way through the pandemic, provide support to people during this very challenging time, give them the ability to get through it.”
Audio PlayerWith all the spending planned, the province is still making cuts in some ministries. According to reports, the Ministry of Government and Consumer Services budget will be trimmed by $400-million, and the Ministry of Labour by $70-million.
Provincial NDP Leader Andrea Horwath criticized several aspects of the Ford government’s budget on social media, saying: “if this were my budget, I would urgently invest in LTC, our students and schools, a new Brampton hospital, and the emergency room Peel Memorial needs.” Liberal leader Steven Del Duca also panned it.
Looking ahead, the 2021-22 Ontario budget doesn’t anticipate the province will return to balanced books until at least 2029.
Ontario’s net debt is expected to top $440-billion this year. By 2023-24, the province’s debt-to-GDP ratio is forecast to exceed 50 per cent.
MPP Walker said the government plans to continually lower the annual deficit over the long-term.
“Debt is something we always have to have an awareness of, and frankly be responsible how we manage that debt,” explained Walker. “No one would have liked to have gone to this level of debt, but when you have a once-in-a-lifetime pandemic, we as a government did what we needed to do to make sure we protected people’s health and our economy along the way.”
