TORONTO — Ontario Finance Minister Vic Fedeli recently released a 2018 Ontario Economic Outlook and Fiscal Review that calls for a 2018-19 deficit of $14.5 billion.
Fedeli told the Ontario legislature Nov. 15 the new deficit figure, which is $500 million less than the $15-billion shortfall reported by the Independent Financial Commission of Inquiry in August, included savings in program expenses of $3.2 billion, balanced against tax cuts that will reduce revenues by $2.7 billion.
The economic statement reiterated previously announced policies such as cancelling the cap and trade program, axing the Ontario College of Trades and repealing labour measures introduced by the previous government in Bill 148, and introduced pledges to cut red tape for business by 25 per cent by 2022 and to work with First Nations to help develop the Ring of Fire mineral fields in the James Bay lowlands.
The Progressive Contractors Association of Canada (PCA) issued a statement saying it is “very pleased this government recognizes the enormous economic potential of the Ring of Fire and the need to get moving on it.”
Addressing what he said was excessive regulation, Fedeli noted Ontario has approximately 331 statutes and over 380,000 regulatory requirements, many of which affect businesses.
The statement predicted economic growth of 2.0 per cent in 2018, 1.8 per cent in 2019, 1.7 per cent in 2020 and 1.5 per cent in 2021.
Fedeli gave no indication where the government stands on specific transit projects.
“The government looks forward to completing its review of all capital projects and intends to share details in the coming months,” the economic review stated.
The Progressive Conservative government will keep the minimum wage at $14 per hour — rescinding a hike to $15 per hour — but will introduce a Low-income Individuals and Families Tax (LIFT) Credit that it said would benefit 1.1 million people.
The new credit would give low-income and minimum wage workers up to $850 in Ontario Personal Income Tax relief and couples up to $1,700.
The government said a single person who works full time at minimum wage earning nearly $30,000 would now pay no Ontario personal income tax.
The implementing legislation introduced by Fedeli for first reading contains measures announced early in the government’s mandate to cancel 758 renewable energy projects, saving ratepayers $790 million, explained budget documents.
The statement indicated the Ontario government has asked the federal government to permit the immediate expensing of depreciable assets similar to the United States and said if implemented, Ontario would parallel the measure.
The government will also encourage developers to build more rental housing by exempting new rental units from rent control and it will cancel what it called the “expensive and ineffective” Development Charges Rebate Program, saving the government approximately $100 million over four years. The Ministry of Municipal Affairs and Housing will launch a Housing Supply Action Plan in spring 2019.
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