Minutes ago, Ontario Minister of Finance, the Honourable Vic Fedeli, presented the first Budget of the current Progressive Conservative Government of Ontario
The backbone of the Budget is an “Ontario Recovery Plan” to return the Provincial Budget to surplus by 2023/24 and begin reducing the Province’s net debt burden. There are no major personal income tax cuts in the Budget and new spending is targeted at infrastructure, healthcare, and public education.
The Province’s economy is expected to grow each year from 2019 to 2024 and employment is forecast to rise at an average annual pace of 1.1 percent over the same period.
High profile spending initiatives and/or policy proposals in the 2019 Budget include:
Ontario Job Creation Investment Incentive: The Government will provide $3.8 billion in capital cost write-offs in the coming years, targeted at manufacturing machinery and clean energy equipment. The incentive compliments capital cost allowance changes in the Federal Fall Economic Statement 2018.
Infrastructure: The Government is allocating $14.7 billion in 2019/20 and $144 billion over the next ten years to infrastructure, including funding for building and renovating hospitals and public schools, improving existing rail corridors in Southern Ontario, funding municipal light rail, and expanding the City of Toronto’s subway and rapid rail systems.
Ontario Childcare Access and Relief from Expenses (CARE) tax credit: On top of the existing Child Care Expense Deduction, families will receive up to $6,000 for eligible child care expenses per child under seven, up to $3,750 per child between the ages of seven and 16, and up to $8,250 per child with a severe disability.
Dental Care for Low-Income Seniors: By late summer 2019, single seniors age 65 and older with incomes of $19,300 or less (or senior couples with combined incomes of less than $32,300) and without existing dental benefits, will be able to receive dental services in public health units, community health centres and Aboriginal Health Access Centres located throughout the province.