Ontario to table 2024 budget today. Here’s what you need to know
The Doug Ford government will table the 2024 Ontario budget on Tuesday.
Officials have been relatively tight-lipped about the budget’s contents, promising only that they will not raise taxes and will focus on rebuilding the economy.
“We’re always going to make sure that we put money into people’s pockets rather than the government’s pockets,” the premier said at a news conference on Monday.
Finance Minister Peter Bethlenfalvy set the stage for his next budget late last week with the purchase of new steel-toed boots in replacement of the typical budget day dress shoes.
“We’re rebuilding the economy,” he said at a Mark’s, formerly known as Mark’s Work Wearhouse, on Friday. “I’m going around to construction sites right across the province so these are going to come in very handy.”
“Let’s go build Ontario.”
The last few provincial budgets have put heavy emphasis on industry, manufacturing and infrastructure–and this year will no doubt be the same.
Here’s what you need to know:
When will we be out of the red?
Last year the government projected it would balance the budget by 2025.
Under this spending plan, the largest in the province’s history, Ontario’s deficit would drop to $2.2 billion this fiscal year before dipping to $1.3 billion in 2023-2024.
However, in February, Bethlenfalvy projected Ontario would end this fiscal year with a $4.5-billion deficit. It’s unclear what this means for the province’s financial timeline and whether the government still expects a surplus in 2025.
Some of the extra spending is likely the result of Bill 124 backpay.
Gas tax cut extension
The premier announced Monday that he will be extending the gas and fuel tax rate cut until the end of the year.
Ontario Premier Doug Ford makes an announcement and answers questions at a press conference in Mississauga, Ont., Tuesday, February 13, 2024. THE CANADIAN PRESS/Christopher Katsarov
The cut, which temporarily slashed the gasoline tax by 5.7 cents per litre, and the fuel tax by 5.3 cents per litre, was going to expire on June 30.
The government says its tax rate cut has saved Ontario households an average of $320 since it was first introduced in 2022.
The price tag for this policy is about $320 million for 2023-24 and $325 million for 2024-25.
New money for housing infrastructure
The province has already said it will be investing about $1 billion into a new Municipal Housing Infrastructure program that will support “core infrastructure projects that help enable housing for growing and developing communities, such as roads and water infrastructure.”
Few details have been released about program eligibility.
An additional $625 million more will be added to the province’s Housing-Enabling Water Systems Fund, which helps repair and expand access to water infrastructure.1.6627107
Will we get cost breakdowns of major infrastructure projects?
The government has pledged about $4 billion for highways in the 2023 budget; however Ontarians are yet to see full cost breakdowns for some of the province’s flagship projects like Highway 413.
The province recently came to an agreement with the federal government that clears the way for the Ford government to go forward with this road without an environmental assessment.
In the province’s fall economic statement, the government pledged to invest an additional $3 billion in a new infrastructure bank to help spur community development.
Officials say it will enable public sector pension plans and other “trusted institutional investors and Indigenous communities” to “further participate in large-scale infrastructure projects.”
Few other details have been provided.
Funding increase for post-secondary education
The province has said it will spend an additional $1.3 billion over three years to “stabilize” post-secondary institutions while also freezing tuition fees for another three years.
Ontario hall at Queen’s University campus in Kingston, Ontario, on Wednesday March 18, 2020. THE CANADIAN PRESS/Lars Hagberg
About $903 million will be handed to universities and colleges, with some money set aside for those with the highest financial needs.
The rest of the funding will go towards capital funding. A full breakdown can be found here.
Tuition fees will be allowed to increase for out-of-province domestic students or Canadians living outside of Ontario by up to five per cent in 2024-2025.
Where do we stand with housing?
Last year the province’s housing starts appeared to be declining despite new measures put in place by the government.
In 2022 there were 96,000 housing starts and just over 80,000 were projected for 2023.
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