Ontario Finance Minister Peter Bethlenfalvy tabled his first budget today, entitled “Ontario’s Action Plan: Protecting People’s Health and Our Economy”. Today’s budget was an important step for the government in demonstrating that it is laser focused on two priorities: protecting people’s health and protecting the economy. The fiscal plan was positioned as the blueprint for “finishing the job started one year ago”, in a way that ensures no one is left behind, noting that “you can't have a healthy economy without healthy people.”  

This reflects the government’s belief that an economic recovery will only happen when every Ontarian is safe from the pandemic, which is centred on dispensing vaccines as soon as they are received. The Minister emphasized that the fiscal plan does not rely on tax hikes or cuts to government services, making it clear that economic growth will be the key to ensuring the sustainability of the province’s finances. He further noted that while government will create the conditions, it will be the people and the employers of the province that will create the growth.  

The budget includes unprecedented spending on health care, including $1 billion towards implementing a province-wide vaccination plan. There is $5.1 billion in hospital funding ($1.8 billion this year alone) along with $2 billion in long-term care spending aimed at ensuring what happened in these facilities never happens again.  

The budget also provides significant support to families, workers and employers. The COVID-19 child benefit is being doubled from $200 to $400 per child, and the CARE tax credit for childcare expenses is being enhanced by 20 per cent. For workers and employers, there is a second round of Ontario Small Business Support Grant payments, and more support for the tourism, hospitality and culture industries through an additional investment of $400 million over the next three years to support workers and employers in these sectors. The budget also includes a $2.8 billion investment in connecting homes and businesses to better and stronger Broadband, a need brought into stark relief with the pandemic.

Against the backdrop of investments of $51 billion over four years in fighting the pandemic, the Minister said that although the deficit levels reflected in the budget are neither sustainable nor desirable forever, he also holds the unequivocal belief that they are necessary to get through the pandemic and onto recovery.  

The Minister summarized the budget by expressing optimism about the road ahead: “I am putting the world on notice: don’t bet against us. Don’t bet against the people of Ontario. We will succeed.”

For a deeper dive on the budget's plan to protect Ontarian's health and the province's economy, read our FHRadar: Ontario Provincial Budget 2021 report. If you’re interested in talking with us about what the new budget means for your industry, contact our public affairs team here.