Ontario’s deficit is projected to rise to $19.9 billion this year, according to the Ford government’s 2022 provincial budget.
Minister of Finance Peter Bethlenfalvy tabled the budget at the legislature Thursday afternoon, just over one month ahead of the provincial election.
In the last year, the projected provincial deficit has increased by $6.8 billion. However, the PC government said it plans to return to a surplus by 2027-2028. The province is forecasting steadily declining deficits of $19.9 billion in 2022–2023, $12.3 billion in 2023–2024, and $7.6 billion in 2024–2025.
Key spending in this year’s budget included funding measures for infrastructure, low-income workers, and the health care sector.
An investment of $12 billion is planned for new vehicle production mandates and battery manufacturing to help create manufacturing jobs. Another, $1 billion is being committed to legacy infrastructure, such as all-season roads to the Ring of Fire, the location of Ontario’s critical minerals mining district.
The skilled trades were also featured in the budget, with $114.4 million over three years earmarked for a Skilled Trades Strategy. Workers will also benefit from an increase in the general minimum wage to $15.50, starting on October 1.
Provincial highways will also see more than $200 billion in investments over the next 10 years for planning, building and rehabilitation.
The province is also attempting to cut costs for Ontarians by cutting gas taxes for six months starting on July 1 and increasing tax relief for 1.1 million lower-income workers.
The province is also attempting to tackle the housing crisis by supporting the creation of all housing types by speeding up approvals, prioritizing Ontario homebuyers over foreign speculators, cracking down on unethical developers, and introducing a housing supply action plan every year for the next four years.
Over $40 billion is also being set aside for hospitals and health infrastructure over the next 10 years. Another $42.5 million will be spent over two years to support the expansion of medical education and training. The province plans to spend an additional $1 billion over three years for home care services.
