Ontario Finance Minister Vic Fedeli said the government has already made a small dent in the province's deficit, but warned Thursday that more pain is coming to deal with the budget shortfall.
Despite years of economic growth, Fedeli said the Liberals left a massive $15 billion deficit, which it tried to hide using one-time revenues and accounting manoeuvres. That leaves the province vulnerable to the next economic downturn, risking social and other programs Ontarians rely on.
“The results are staggering,” he said, of the line-by-line budget review. “We have to fix this financial mess … We must live within our means and pay down our debt.”
The budget review already found $3.2 billion in savings, offset by $2.7 billion in tax relief, but the overall deficit is down to $14.5 billion, Fedeli said.
“It's going the right way,” he said. “(But) there's still much work to be done. The road back to balance won't be easy.”
In addition to the tough talk on the books, Fedeli also announced the end of the Green Energy Act – “I've waited a long time to say that” – and the cancellation of 758 contracts under the act and an end to the carbon tax.
“Ontario is open for business,” Fedeli said several times, as well as the slogan “promise made, promise kept.”
The province is also cancelling plans for a French-language university, eliminating the College of Trades and folding the environment commissioner, French language commissioner and child advocate into other provincial agencies.
Fedeli also announced the province is adding 6,000 new long-term care beds across the province, with 9,000 more in the pipeline. Ontario is also providing $90 million to add 1,100 beds during this year's flu season.
The governing Progressive Conservatives are also eliminating income taxes for workers who make less than $30,000, while also cancelling a planned minimum wage hike to $15 an hour. The government says that means there will be no provincial income tax for about 580,000 taxpayers and lower taxes for 520,000 taxpayers.
Fedeli also said they are removing rent control guidelines for new housing in an attempt to spur construction, but controls will remain in place for existing units.
Without providing details, he said the province will work directly with First Nations to make progress on the long-delayed the Ring of Fire.
“No more platitudes, no more delays,” he said.
Other highlights from Thursday's economic statement:
- The province plans to cut red tape for business by 25 per cent by 2022. Fedeli said Ontario has 331 statutes and 380,000 regulations for business, while B.C. only has half that many.
- Ontario is withdrawing its veto over oil pipeline construction in hopes to spur construction and get western oil headed east.
- Premier Doug Ford will oppose the federal carbon tax “with every tool in his toolbox,” including going to court.
You can read the full statement here.
