The Ontario government is expecting budget deficits that are larger than previously anticipated.
In a fall economic statement, Finance Minister Peter Bethlenfalvy announced that this year’s deficit will hit $16.9 billion, which is over $3 billion higher than what was estimated in the spring budget.
A balanced budget is not expected until 2029-30.
Bethlenfalvy attributes this to U. S. trade tariffs and the need to safeguard workers, industries, and communities from their effects.
“No doubt the world has changed,” says Bethlenfalvy.
“But…we have a plan. A plan that we started on day one. A plan that is working.”
Bethlenfalvy reiterated a commitment made earlier this week, allowing companies to immediately deduct certain capital investments for tax purposes through an $8 billion Ontario Competitiveness Tax Cut program.
The government is also focused on strengthening Ontario’s industrial base to attract new jobs and investment through the recent $8.7 billion Canada-Ontario action plan signed earlier this month.
Bethlenfalvy mentioned plans to further reduce regulatory burdens to speed up investments, including aims to eliminate, streamline or transform most permit policies within the next two years.
Additionally, the government intends to evaluate public services and programs for efficiency improvements and enhance oversight.
Bethlenfalvy emphasizes that it’s not necessarily about cutting jobs.
“Every job in the Ontario Public Service is important,” says Bethlenfalvy.
“Similarly in our agencies and the broader public sector, but we have the ability to move people around, find efficiencies, get more productive use out of the existing footprint that we have.”
The opposition quickly criticized the statement for not addressing issues related to affordability and job protection.
“I think it’s pretty clear Ontarians do not want the scandals and the waste, the five-star hotels,” says NDP critic Jessica Bell.
“They don’t want that anymore. What they want is a full economic statement that is going to invest wisely and responsibly in the things that matter: jobs, affordability, education and healthcare.”
“People are worried. They’re worried about their jobs. They’re worried about their kids. They’re worried about whether or not they’ll ever be able to afford a home. They’re worried about crumbling public services,” adds Liberal critic Stephanie Bowman.
“And what do we have here? No credible plan. No credible plan to help those families, those workers.”
This statement comes as the government gears up for a series of public consultations regarding next spring’s budget.
Details on locations and dates are expected later in November.
Randy Thoms is a veteran news broadcaster with over 40 years’ experience. He is based in Fort Frances and covers stories across northwestern Ontario. Contact Randy at thoms. randy@radioabl. ca.
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