Ontario Liberals re-introduce budget
Posted Jul 14, 2014 04:57:24 PM.
This article is more than 5 years old.
ONTARIO — Ontario’s Liberals have reintroduced their $130-billion budget, which is identical to the one the opposition parties rejected in May, triggering last month’s election.
The Progressive Conservatives and New Democrats still don’t like it, but with the Liberals holding the majority of seats in the legislature, there’s no doubt the fiscal plan will be approved.
Finance Minister Charles Sousa says the budget invests in a highly educated and skilled workforce and public transit expansion, while keeping spending under control.
But the Tories don’t believe the Liberals can keep their promise to eliminate a $12.5-billion deficit in three years.
They warn that failing to meet short-term deficit targets will result in an expensive downgrade in Ontario’s credit rating.
Interest on the nearly $290-billion debt is over $11-billion a year, the fourth-largest expenditure item in the budget after health, education and child and social services.
The budget also includes $29 billion for public transit and infrastructure.
It also promises a made-in-Ontario pension plan for workers who don’t have a pension, which will require contributions from both employers and workers.
The Liberals also promise to spend $2.5 billion in grants for companies that create jobs in Ontario.
The N-D-P warn the budget paves the way for the “wholesale sell-off” of provincial assets such as Ontario Power Generation, Hydro One and the Liquor Control Board, but the government says it will retain majority ownership of each agency.
There will also be a higher tax for Ontarians making over $150-thousand.
Other promises in the budget include $11.4 billion over the next decade to expand and upgrade hospitals and $11 billion over 10 years to repair schools.
There is also $1 billion set aside to develop an access road or rail line into the remote Ring of Fire mineral deposit in northern Ontario.
