Ontario is on track to balance the books in 2017-2018, Finance Minister Charles Sousa said Monday, despite a projected deficit this year of $4.3 billion.
“By managing government finances in a responsible and fiscally sound way, including taking a cautious approach to estimating pension expense, Ontario forecasts a balanced budget in 2017,” a news release said.
“Ontario has a proven track record of beating its deficit targets, as demonstrated each of the past seven years. Most recently, Ontario's public accounts for 2015-16 reported a $5 billion deficit, an improvement of $3.5 billion from the 2015 budget deficit projection."
In his fall fiscal statement, Sousa also announced help for first-time home buyers, who will be eligible for an enhanced tax break.
“Ontario will help more people purchase their first home through a proposal to double the maximum land transfer tax refund for eligible first-time home buyers to $4,000,” the release said. “The increase would be effective Jan.1, 2017, and mean that eligible home buyers in Ontario would pay no land transfer tax on the first $368,000 of the cost of their first home.”
The update included details on new spending on programs, including $140 million in new health-care funding that aims to help patients and families receive better care and quicker access to hospitals across Ontario. And more families are expected to benefit from an expansion of licensed child care with an investment of $65.5 million this school year to support the creation of about 3,400 new spaces.
The province is expected to be among the leading economies in Canada over the next two years, the release said.
“For the first half of 2016, Ontario posted stronger growth in the gross domestic product than Canada, the U.S. and almost all other G7 countries,” the release said.
“Exports are trending higher, businesses are hiring more workers and household incomes are rising. Ontario's labour market also continues to improve. More than 641,000 net new jobs have been created since the global recession and the unemployment rate is at an eight-year low.”
Other highlights from the fiscal statement:
Rebating an amount equal to the eight per cent provincial portion of the Harmonized Sales Tax from the electricity bills of eligible residential consumers, small businesses and farms starting Jan. 1, 2017;
Enhancing the Rural or Remote Electricity Rate Protection program to provide eligible rural customers with savings of about $45 per month, or $540 a year, resulting in on-bill monthly savings of about 20 per cent on their electricity bills when combined with the eight per cent rebate.
Strengthening Health Care and Education
A new dementia strategy that will build on current investments of $85 million to enhance services for older Ontarians and their families. The province is also consulting this fall to help improve access to quality care for almost 230,000 people newly diagnosed or living with dementia and to support their caregivers.
Investing $32.4 million over four years in the Scale-Up Voucher Program to help high-impact companies overcome barriers to their next stage of growth by funding activities such as developing and recruiting specialized talent, accessing new markets and protecting intellectual property.
Passing the Climate Change Mitigation and Low-carbon Economy Act, 2016 that lays the foundation for Ontario's cap-and-trade program. The program will help Ontario businesses seize the opportunities of the emerging low-carbon economy.
Protecting Ontario Consumers:
Banning door-to-door marketing of certain household appliances, including water heaters, furnaces, air conditioners and water filters to protect consumers who feel pressured to sign contracts at the door.
Regulating the home inspection industry through mandatory licensing and qualifications for home inspectors as well as minimum standards for contracts, home inspection reports, disclosures and the performance of home inspections.
