Ontario needs to get ready for “tougher times” due to global economic shifts, but the government won’t cut public sector jobs to strengthen the budget during these uncertain times, according to the finance minister ahead of Thursday’s fiscal update.
While other provinces have recently prepared for economic challenges by projecting record deficits, raising taxes, and reducing front-line jobs, Ontario will take a different route, Peter Bethlenfalvy states.
“The world has changed – and Ontario must be ready for what change may bring, even if that means being prepared for tougher times,” he said in a pre-budget address earlier this month.
“As a government, we cannot eliminate uncertainty, but we can reduce risks with a responsible and balanced fiscal strategy that supports public services and infrastructure while keeping flexibility.”
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In that speech, he mentioned twice about delivering government programs “efficiently and sustainably,” phrases often used by politicians hinting at budget cuts.
“I think it shows that we’ve got to ensure that our significant investments in social services, health care, education reach those who provide them-whether it’s a social worker or a health-care worker or a teacher-and make sure money doesn’t just go to administration,” he said Wednesday in an interview.
Ontario has already asked hospitals to come up with a three-year plan to balance their budgets as part of efforts to manage increasing deficits in the sector while assuming two percent annual funding increases. That’s half of what they received last year.
Some hospitals have begun making some “lower risk” cuts under that plan as noted by the Ontario Hospital Association. The province would need around $2.7 billion more to meet all operational requirements of the hospital sector according to their claims.
The province’s deficit was reported at $13.4 billion during the last fiscal update earlier this year. Bethlenfalvy hasn’t commented on whether his goal for balancing budgets is still set for 2027-28 as planned last year.
However, balance seems like an elusive target. The 2027-28 aim is now pushed back one year compared to projections made in last year’s budget which itself was also delayed from forecasts made in 2023.
If Ontario maintains its current financial position without using available fiscal space for new spending commitments according to Desjardins’ budget preview it should stay on track towards achieving balance and reducing its net-debt-to-GDP ratio.
“When the Government of Ontario releases its 2026 budget on March 26, we believe it should take advantage of this favorable tax situation by resisting urges for major spending increases like those seen from federal and other provincial governments,” deputy chief economist Randall Bartlett wrote.
“Instead, it should keep some financial resources available for potential future issues like the upcoming Canada‑United States‑Mexico Agreement (CUSMA) joint review.”
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Bethlenfalvy has already revealed some new spending plans before the budget announcement including an extra $325 million allocated towards primary care and $1.4 billion intended for covering part of HST costs for certain homebuyers.
Premier Doug Ford along with Bethlenfalvy and Municipal Affairs and Housing Minister Rob Flack announced Wednesday that Ontario intends temporarily increasing HST rebates on buying new homes aimed at supporting struggling construction sectors.
The government previously introduced rebates meant for first-time homebuyers purchasing new homes valued up to $1.5 million; homes worth $1 million or less qualify for maximum rebate amounts totaling $130,000 when combined with federal incentives.
Ford stated that Thursday’s budget will propose extending these rebates over one year both concerning eligible home purchases as well as removing restrictions limiting them only to first-time buyers.
This temporary adjustment would allow homes priced up to $1.5 million eligibility for maximum rebates of $130000 decreasing incrementally downwards toward houses costing $1.85 million which would then qualify only up until about $24 thousand rebate limits apply here too!
“My message today directed towards everyone involved within building sectors is straightforward: start constructing,” Ford remarked during his press conference session!
“To all wonderful residents across our great province – if you’re financially able enough considering buying either condos/townhouses/detached properties – please get everything sorted! There exists precisely one calendar year left enabling access reductions reaching around$130k off purchase costs; thus go speak directly with banking institutions & initiate property acquisitions promptly!”
According ministry estimates; collaboration efforts between provincial/federal levels facilitating reduced percentages equating near$2billion+ benefits related housing projects occurring throughout region! This initiative intends boosting growth rates facilitating additional8k+housing starts amid current projections indicating70knewhomesbuiltthisyear falling woefully short meetingfuturegoalsofaround1500000unitsestablishedovertenyears’ timeframe outlined previously!
A few months back, Bethlenfalvy referred such expectations targeting approx150000 unitsas merely “soft” aspirations set forth moving forward …
This report released through Canadian Press officially dated March25th2016..
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