Ontario Liberals unveil budget

(Update)

The Ontario Liberals unveiled a $130 billion budget at Queen’s Park today. As expected, we will not be seeing a balanced budget this year. The provincial government plans to spend billions of dollars more than it’s making, in this latest budget, we will actually see an increase in the provincial deficit.

Taking a look at last year, the government spent $127 billion in total expenses, while bringing in $115.7 billion in revenue. That resulted in a deficit of $11.3 billion, which is actually $400 million less than what they anticipated.

With $3 billion in new spending this year, the government’s expenses will go up to $130.4 billion. Once again, the expected revenue will not make up for that amount, and the deficit will increase to $12.5 billion. However, the Liberals say they are on track to balance the budget by 2017.

Ontario’s Liberals plan to spend $130-billion on various infrastructure projects over the next decade, which finance minister Charles Sousa says will create jobs, spur productivity and help the economy grow.

Sousa’s budget allocates $11.4 billion to repair and upgrade schools, $11 billion for hospital expansion and redevelopment projects and the promised $29 billion to fund public transit as well as roads and bridges.

The budget also set aside $2.5 billion for a jobs program that essentially involves giving grants to companies, which the Conservatives criticize as “corporate welfare.”

The announcement included the introduction of the Ontario Retirement Pension Plan. That would require equal contributions between employers and workers.

The Liberals also say they will spend about $29 billion over the next ten years on public transit and transportation. $15 billion of that will go towards projects in the GTA and Hamilton.

To make up for spending, tax increases on tobacco and aviation fuel have been proposed. There are also plans to increase income tax for those making more than $150-thousand dollars a year.