The deficit for the fiscal year ended last month fell from $ 21.5 billion estimated in the 2021 financial statement and $ 33.1 billion in the 2021 budget to $ 13.5 billion. The 2022 budget says the deficit will be reduced to $ 10.8 billion in 2023-24, $ 6.1 billion in 2024-25, $ 5 billion in 2025-26 and only $ 700 million in 2026-2027, once subtracted a $ 1.5 billion reserve. Premier Doug Ford’s election year budget includes a promise of tax breaks for low-income workers, a reduction in the gas tax, and reveals how much his much-touted license plate fees will cost. The Ford government is betting heavily on infrastructure, with $ 10 billion in extra money to build and renovate hospitals over the next 10 years. The funds will build new hospitals in Brampton and Mississauga and redevelop other hospitals in Etobicoke and Scarborough, along with a number of other projects across the county. There is also nearly $ 4 billion extra to build highways in the county over the next decade, though provincial bureaucrats will not say how much of that will be committed to the new Highway 413 or the Bradford Bypass, projects that are expected to cost billions. and have not yet been auctioned. Finance Minister Peter Bethlenfalvy defended the size of the nearly $ 200 billion spending plan, which predicts the province will remain in deficit until the next election or later, saying it faces affordability issues caused by high inflation each time. “What you have seen is that we are reducing costs on many fronts – lower income tax for those who make $ 50,000 or less is part of our plan – we have given the license plates – and the previous liberal government, just increased the fees every year – with license plate stickers, this is like an immediate tax reduction. “ Addressing the budget hawks, he said the new plan continues to eliminate the deficit two years earlier than had been foreseen in its latest budget. “Our debt to GDP (ratio) is reduced by eight percent and our commitment to balance the budget will become two years faster than we said last year,” he said. But he was asked four different times if he would actually pass the budget presented on Thursday, if the PCs win the June 2 election, Bethlenfalvy was less clear. “What I promise to the people of Ontario is that this is our plan. This is the budget we are setting and we will get the people of Ontario to vote on this budget. “And I have complete confidence in the people of Ontario that they will pass this budget.” NDP leader Andrea Horwath said she felt there was no guarantee that PCs would pass the budget in its current form if they won the election. “I’m absolutely worried about a bait and a change. “There must be a hidden budget somewhere – because the finance minister refused to commit to the document he put in front of you today, he felt very uncomfortable.” He said the budget was full of “tricks” and failed to acknowledge the seriousness of the lack of affordable housing and rising inflation.
NEW MEASURES FOR THE ELDERLY
Completely new is a tax deduction aimed at vulnerable seniors who are still living at home and receiving home care from a nurse or attendant. The new home care tax credit will offer taxpayers aged 70 or over 25 percent of medical expenses up to $ 6,000 for a maximum credit of $ 1,500. Seniors earning $ 65,000 a year or more are not eligible. It is expected to cost $ 110 million in 2022 and help up to 200,000 seniors.
RETURN OF LICENSE TABLE
Ford’s biggest promise in terms of cost is the government’s ongoing effort to end sticker renewal fees and send $ 60-120 per year discounts per vehicle to all Ontario car owners. However, the budget document says the rebate will cost taxpayers $ 1.8 billion, $ 800 million more than was suggested by government sources when the commitment was first published.
INCOME TAX FOR LOW RENTS
The budget also outlines plans to extend the Ford Government’s tax credit for low-income earners and families (LIFT). The new LIFT credit will include taxpayers earning up to $ 50,000 individually or up to $ 82,500 for a household and providing up to $ 875 in tax breaks. The expanded limit means that an additional 700,000 Ontario taxpayers will qualify for the credit. It will cost taxpayers $ 400 million each year. NDP economics critic Kathryn Fife said the credit was just a few “dollars” per taxpayer each year. “It simply came to our notice then. It’s not easy to navigate and that’s small, we’re talking about just dollars in people’s pockets, one or two dollars. “There is no real recognition that people are in pain.”
PRICES IN PUMPS
In July there will also be a reduction of 11 cents per liter in provincial taxes on gasoline, which expires at the end of 2022. Budget plans for 2022 This tax cut will cost the county $ 645 million in lost revenue this year. Other details of the documents include an additional $ 3.5 million for emergency preparedness measures and $ 96 million over three years for equipping and training Ontario police services to respond to future demonstrations and blockades at land border crossings.
OTHER CLUES
In general, the deficit is shrinking not because of cost cuts, but because of rising revenues. The bureaucrats said the 2022 budget contained nearly $ 20 billion more revenue than last year, due in large part to the complete reopening of all sectors of the economy after the closure during the COVID-19 pandemic. Many areas other than healthcare operate below projected spending targets. Education is $ 1.3 billion under budget in 2021-2022, largely due to lower-than-expected enrollment. Social services and children allocated $ 632 million from the budget because of the lower need for Ontario Child Benefit and fewer social assistance applications than expected. The impact of rising interest rates has begun – with borrowing costs up $ 21 million from last year – a rounding error in a budget of nearly $ 200 billion, but significant nonetheless. Rising interest rates cost the county $ 7 million per base unit per year, which means a 0.50 percent increase in the county costs $ 350 million in additional interest costs. According to a faster-than-expected growth scenario, the province could be in the black by 2024-25, with a $ 2.4 billion surplus. Net debt is expected to rise to $ 395 billion this year, up from $ 324 billion five years ago. Ontario is still budgeting $ 1.1 billion for the COVID-19 test in 2022-23. This equates to about 64,000 PCR tests per day using existing cost figures of about $ 47 per test, a test rate that the province has not hit in more than three months and will find difficult to achieve under current eligibility rules. Real estate continues to make a strong contribution to state coffers, with land transfer tax revenue rising by $ 212 million to nearly $ 5.7 billion in 2022. Also, tightening the non-resident speculation tax, which now covers all of Ontario and includes groups such as foreign students and foreign workers who were previously exempt, will bring the government $ 175 million this year and $ 235 million by 2024-2025.
