Thursday, the Ontario Liberal government put forward the first balanced budget in the last decade.
“This budget is fiscally responsible,” Ontario Minister of Finance Charles Sousa said to reporters in budget lockup, prior to the Throne Speech. “Balancing the budget allows us to make these important investments — investments that have real meaningful impacts in people’s lives.”
The 2017 Ontario Budget, entitled A Stronger, Healthier Ontario, is meant to spearhead a balanced budget for the next three years. The document focuses greatly on health care and education, while investing less in infrastructure and transit. There are some special tidbits for families, including a 35 per cent reduction on hydro bills for eligible households, free prescription medication for children and young adults, and funding for work-related opportunities through a new Career Kick-Start Strategy.
The provincial government, while making significant investments in health care and education, chose to maintain investments on pre-existing projects rather then provide new funding for further transit networks like the downtown relief line.
In addition to the province’s continual $190 billion investment over a 13-year period, which started in 2014, Ontario is investing an additional $56 billion in public transportation for the GO Network and other pre-existing infrastructure projects like the Eglinton Crosstown, Hamilton Rapid Transit, and the Mississauga Transitway.
The budget indicates the province will continue to “support for the planning of the Downtown Relief Line in Toronto”, but no further funding was made available. Currently, Ontario has offered $150 million for the planning of this integral transit project.
Instead, the province is standing firm in their contributions via the gas tax program, which promises to double the municipal shares from two to four cents per litre by 2021.
Other transit projects receiving funding include:
The province introduced their Fair Housing Plan, which is meant to help increase affordability for buyers and renters. The cost of housing has increased up to 33.2 per cent since 2016. Ontario has proposed a non-resident speculation tax to help cool the market. This will be a 15 per cent tax on the price of homes for non-Canadians, non-permanent residents, and foreign corporations. If passed, this tax would be effective as of April 21, 2017. Ontario has also committed to improving rent control in Ontario to include units occupied on or after Nov. 1, 1991.
Toronto Mayor John Tory may not have been given the right to toll the DVP and Gardiner Expressway, but the provincial government has permitted the city to implement a levy on “transient accommodations”. This will allow Toronto to tax hotels and short-term accommodations in order to generate much-needed revenue for infrastructure in the city.
The authority to implement such a tax will also be extended to all “single-tier and lower-tier municipalities”, with the understanding that 50 per cent of the funds accumulated from the levy be given to the municipality’s regional tourism organization.
An amendment to the City of Toronto Act will have to be approved before such a levy becomes a reality.
Other investments include:
What do you think of these provincial investments?
Send this to a friend