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Ontario’s Plan to Build

Today, Minister of Finance Peter Bethlenfalvy released the 2022 Budget. Ontario’s Plan to Build has five pillars:

  1. Rebuilding Ontario’s Economy

  2. Working for Workers

  3. Building Highways and Key Infrastructure

  4. Keeping Costs Down

  5. A Plan to Stay Open

“The most important economic decisions do not happen in the board room, they happen at home; and Ontario’s plan for the 2022 Budget will keep costs down and put more money into the pockets of families and seniors so they can invest in themselves, their communities, their families and their futures”, said Andrea Khanjin, MPP for Barrie-Innisfil. “Over the past few months, I have held pre-budget consultations with local businesses, organizations and individuals to ensure that the 2022 Budget addresses the needs of the Barrie-Innisfil community that I am honoured to represent.”


“I have heard loud and clear the needs of my community which is why we will continue to invest in our healthcare workers, long-term care and home care to deliver the quality of care that seniors and patients deserve, while keeping our economy open and strong. We will deliver on our promise of creating opportunities for better jobs and bigger paycheques, cut red tape and costs for our small businesses, bring more affordable housing, and invest in the education of our youth that are our future.”


The government’s plan will seize the opportunities in critical minerals, batteries and electric and hybrid vehicle manufacturing, help deliver better jobs and bigger paycheques for workers, help keep costs down for families, and get shovels in the ground for highways, transit, hospitals and other key infrastructure. Supported by a plan to stay open, the government is building Ontario.


“The people of Ontario deserve a government that has a real plan to build,” said Minister Bethlenfalvy. “Our government’s Budget is Premier Ford’s vision and our plan to cut through the excuses and act right away on the priorities of the people of Ontario.”


The 2022 Budget continues the government’s track record of strong fiscal management. The plan includes increases to base program spending at an average annual rate of about five per cent over the next three years. The Budget also presents a recovery plan that will eliminate Ontario’s deficit two years earlier than projected in the 2021 Budget.


“Our government has a plan, and that plan is working,” said Minister Bethlenfalvy. “But the work is not over, and the job is not done. We are ready to get it done for the people of Ontario.”


Rebuilding Ontario’s Economy

Highlights include:

  • Attracting Game-Changing Automotive Sector Investments with the sector seeing more than $12 billion in investments over the past 18 months for new vehicle production mandates and battery manufacturing. The automotive industry has responded to Ontario’s plan to help transform and grow the automotive sector, lower taxes, reduce electricity costs and cut red tape, including:

  • Honda: Honda’s almost $1.4 billion investment to upgrade and retool its plants in Alliston and begin manufacturing hybrid models, with the Ontario government providing $131.6 million in grant support and the Government of Canada making a matching contribution.


Working for Workers

Highlights include:

  • Ontario’s Skilled Trades Strategy: Investing an additional $114.4 million over three years in Ontario’s Skilled Trades Strategy to break the stigma associated with the skilled trades, simplify the system and encourage employer participation.

  • Employment and Training Programs: Investing $1 billion annually in employment and training programs to help people retrain and upgrade their skills.

  • Better Jobs Ontario: Relaunching the Second Career program as Better Jobs Ontario, which will now support a larger, more diverse range of Ontario workers.


Building Highways and Key Infrastructure

Highlights include:

  • Investing in Highways: Investing $25.1 billion over the next 10 years to support the planning and/or construction of highway expansion and rehabilitation projects to connect communities, fight gridlock and keep goods and people moving across the province, including:

  • Barrie: Replacing the bridge and improving the interchange at the Highway 400 Essa Road overpass. Investing through the Ontario Community Infrastructure Fund: Investing nearly $2 billion over five years through the Ontario Community Infrastructure Fund to help small, rural communities, such as Innisfil.

  • Investing in the Canada Infrastructure Program (ICIP): The Investing in Canada Infrastructure Program (ICIP) represents up to $30 billion in combined federal, provincial and partner funding over 10 years. Ontario continues to join its provincial and territorial partners in calling on the federal government for new funding of $10 billion a year over 10 years to help communities meet the demand for infrastructure renewal, respond to a changing climate and support economic growth.

  • Investing in Freshwater Facilities: Protecting Ontario’s lakes is a key commitment in the government’s plan to help ensure a safe, healthy and clean environment now and for future generations. The government is investing $24 million for the planning and construction of the Holland Marsh Phosphorus Recycling Facility in York Region, which will help protect Lake Simcoe.

  • Modernizing Schools: Investing about $14 billion in capital grants over 10 years to support school infrastructure, including $1.4 billion to renew and maintain schools for the 2022–23 school year.


Keeping Costs Down

Highlights include:

  • Eliminating Licence Plate Renewal Fees and Stickers: Eliminating licence plate renewal fees and stickers to refund eligible individual owners of vehicles for any fees paid since March 2020.

  • Cutting the Gas and Fuel Tax Rates: To address rising costs for Ontario families and businesses, the government introduced the Tax Relief at the Pumps Act, 2022 that will cut the gas tax by 5.7 cents per litre and the fuel tax by 5.3 cents per litre for six months beginning July 1, 2022.

  • Proposing an Enhancement to the LIFT Credit: The proposed enhancement to the Low-income Individuals and Families Tax (LIFT) Credit would provide an estimated $320 million in additional Personal Income Tax relief per year to about 1.1 million taxpayers.

  • Investing in Child Care Projects: Addressing increasing demand for child care by creating 86,000 new, high-quality child care spaces. This includes more than 15,000 new spaces already created since 2019.


A Plan to Stay Open

Highlights include:

  • Investing in Critical Hospital Infrastructure: The government is making record investments in hospital renewal and expansion that will address the increasing need for health care services in growing communities and provide essential care to patients and their families across the province, including:

  • Royal Victoria Hospital: Phased Redevelopment Project to build a new facility at the South Campus in Innisfil with an ambulatory care centre and urgent care services.

  • Building More Long-Term Care Beds: Ontario now has more than 31,000 new beds and more than 28,000 upgraded beds in the development pipeline, and is on track to build more than 30,000 net new beds across the province by 2028.

  • Launching the New Learn and Stay Grant: Starting in spring 2023, the government will invest in up to 2,500 eligible postsecondary students who enroll in priority programs, such as nursing, to work in underserved communities in the region where they studied after graduation.

  • Ontario Seniors Care at Home Tax Credit: The government is also proposing a new, refundable Ontario Seniors Care at Home Tax Credit to help seniors aged 70 and older with eligible home care medical expenses to help people stay in their homes longer.


QUICK FACTS

  • Ontario’s real gross domestic product (GDP) increased 4.3 per cent in 2021, and employment rose by 344,800 net jobs in 2021 or 4.9 per cent, the strongest annual pace of job growth on record.

  • Ontario is projected to return to a surplus position by 2027–28, two years earlier than forecast in the 2021Budget. Over the medium term, the government is projecting steadily declining deficits of $19.9 billion in 2022–23, $12.3 billion in 2023–24, and $7.6 billion in 2024–25, representing a significant improvement since the 2021 Budget.

  • The net debt‐to‐GDP ratio is projected to be 40.7 per cent in 2021–22, 8.1 percentage points lower than the 48.8 per cent forecast presented in the 2021 Budget. Over the medium‐term outlook, Ontario’s net debt‐to‐GDP ratio is now forecast to be 41.4 per cent in 2022–23 and 2023–24, and declining to 41.3 per cent in 2024–25.


ADDITIONAL RESOURCES

2022 Budget: Ontario’s Plan to Build

Read highlights of the 2022 Budget: Ontario’s Plan to Build

A Capital Plan for Building Ontario

Economic and Fiscal Overview




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