Ontario releases 2021 budget, the second under COVID-19 pandemic

The Ontario government says its second pandemic budget is one that protects people’s health and the economy.

“You can’t have a healthy economy without healthy people,” said Minister of Finance Peter Bethlenfalvy.

“For the past year, we have been focused on protecting people from COVID-19. Many challenges lie ahead. But with vaccines being distributed in every corner of the province, hope is on the horizon.”

Health 

The province is set to spend $16.3 billion on various health measures, including money for defeating COVID-19, hospitals and long-term care.

COVID-19

• $2.3 billion for a comprehensive testing strategy and contact tracing
• $1.4 billion for personal protective equipment for frontline workers and vulnerable people
• $1 billion to support rollout of vaccines (since 2020)

Hospitals and long-term care

• $1.8 billion to provide care for COVID-19 patients in hospital, including $300 million to address surgical backlogs
• $175 million in 2021-2022 for mental health and addictions services
• $933 million over four years to build more long-term care beds
• $246 million over four years for upgrades like air conditioning in long-term care

Economy

“The necessary public health measures have come at a cost for workers, families and business owners, but there is no question that they have saved lives,” said Bethlenfalvy.

“We are taking further steps to provide additional relief and support to those who have been most impacted by the pandemic.”

The budget includes $23.3 billion under what the government calls protecting the economy, which includes spending for workers, families and communities.

There’s $260 million for a new Ontario Training Tax Credit as well as money for a second round of Ontario Small Business Support Grant payments to help 120,000 small businesses.

Families

• $980 million for the Ontario COVID-19 Child Benefit for a third-round of payments
• $75 million for a proposed enhancement of the CARE tax credit for 2021 to help with the cost of child care
• $30 million for Seniors’ Home Safety tax credit to allow seniors to stay in their homes longer

Communities

• $400 million over three year to support tourism, hospitality and culture industries
• $50 million in grants made available to faith-based and cultural organizations
• $21 billion over ten years for highway and road projects, including the expansion of Highways 6 and 401 between Hamilton and Guelph and the widening of Highway 6 South from Highway 403 to Upper James

There’s also $1.6 million allocated over two years to support community anti-racism initiatives and $255 million to address homelessness.

Hamilton

The document touches on transportation needs in Hamilton, with the government saying it’s committed to providing $1 billion to fund a “higher-order transit project” and proceed with planning for an updated light-rail transit plan.

It continues to call on the federal government to partner on this project.

READ: Ford government asks feds for $1.5B in funding for Hamilton LRT project

According to the document, the province’s real gross domestic product is estimated to have declined by 5.7 per cent last year.

Employment has increased since May 2020 but remained below pre-pandemic levels.

Ontario is projecting a $38.5 billion deficit in 2020-21 with that number declining to $33.1 billion in 2021-22 and to $27.7 billion in 2022-23.