Ontario’s Liberal government trims deficit, aims to return to balance

Most students from families with annual incomes of $50,000 will receive free tuition starting next year.

“Our path to balance is focused on making strategic investments to grow our economy and create jobs for Ontarians, while managing our spending and maximizing our revenue potential”, Kelsey Ingram, a spokesperson for Finance Minister Charles Sousa, said in an email Friday. For those whose parents earn up to $83,000, approximately 50% of students will receive non-repayable grants substantial enough to cover tuition. “We’re transforming the way our economy works”, Sousa said. “So it’s not to diminish the new program they’re setting up, but the notion that this is more money for students is not exactly true”.

Ontario drivers and home owners pocket books will be hurt by the Liberals cap and trade program.

The budget also includes a five per cent increase on the mark up on wine over the next three years, as well as a 1 per cent hike in the wine tax on imported wine. Overall, the government estimates car-driving Ontario households will pay $13 more a month for fuels, but electricity rates won’t rise as a result of cap-and-trade.

To help offset those costs, the Liberals said they will eliminate the $30 fee that drivers pay for drive clean emissions tests and committed to reducing the cost of the UP Express to $12 for non-presto users and $9 for those with the card.

Ontario emitted about 171 million tonnes of greenhouse gases (GHG) in 2013. In total, the government will reap $1.9 billion in the new carbon fees. This included more than $160 million in financial aid to students whose needs were not fully met by OSAP. “Our plan is working”.

Although there was no love lost between Wynne and the last administration, the provincial budget makes it clear that the relationship between the province and the feds has begun to thaw.

The deficit is projected to shrink to $4.3 billion in this fiscal year.

The government expects to dish out $1.3 billion in grants in 2017, the first year students will be eligible for the money.

The “debt per capita” number is up from $21,470 past year.

In November, the deficit had been projected at C$7.5 billion in the current year – which ends March 31 – and C$4.5 billion next year, but the province’s manufacturing base has been boosted by lower energy costs and a weak Canadian dollar.

“Life is harder and more expensive under the Liberals”, Brown told reporters.

CIGARETTES AND WINE: The prices of cigarettes and wine are going up.

“There’s been no consultation, no warning and for seniors budgeting on fixed incomes, which most are, this is a huge new cost”, she said.

The Ontario Horse Racing Industry Association (OHRIA) is pleased to report that the 2016 Ontario budget makes room for horse racing.