As the Ford government aims to advance an agenda centred around building Ontario infrastructure and jobs, officials have unveiled few new initiatives beyond what was previously announced in the 2024 budget as they slash the projected deficit by more than $3 billion.
In the 2024 Ontario fall economic statement unveiled at Queen’s Park Wednesday afternoon, the government is currently set to run a $6.6-billion deficit for the 2024-2025 budget year as it’s on track to spend more than $218 billion).
The current forecast deficit is down from $9.8 billion forecast in the 2024 Ontario budget unveiled in March, which is attributed increased government revenues as well as an improved economic forecast due to population and job growth, lower interest rates and inflation in recent months.
With speculation growing about a potential early election call ahead of the fixed date in mid-2026, officials say they’re set to cut the deficit to $1.5 billion in 2025-2026 before a projected $900 million surplus in 2026-2027.
While many initiatives continue from previous budgets and announcements, the fall economic statement, which acts as a mini-budget, included a few new measures:
- $100 million over two years for mainly small, rural and northern municipalities (it’s unclear how the funding will be divided)
- $100 million to Invest Ontario program to assist with “attracting major investments” to the province
- $17 million over three years to create 100 new seniors active living centres
Ontario Premier Doug Ford and Finance Minister Peter Bethlenfalvy already announced two main affordability items from the fiscal update that serves as a mini-budget: a continuation of a temporary cut to the gas tax until June, and a $3-billion plan to send $200 cheques to every Ontario taxpayer.
In the lead-up to the fall economic statement, opposition critics have suggested the cheques that are set to be mailed early next year are timed to arrive ahead of a possible spring election.
Meanwhile, the provincial government is still on track to spend more than $191 billion on infrastructure over the next 10 years with more than $97 billion of that total on transit ($68.1 billion), highways ($27.8 billion) and other transportation-related projects.
The fall economic statement also discussed feasibility studies related to the Ford government’s contemplation of building a lengthy tunnel under Highway 401.
However, the financial blueprint didn’t contain details on how much is being spent to study the concept of building a tunnel or other major projects like Highway 413.
More to come.
With files from The Canadian Press