A couple of weeks ago the Ontario Liberal government announced their 2018 budget. Although the benefits may seem vary enticing, it leaves one to wonder, how are all these things going to be paid for?

As it sits, Ontario’s debt is ballooning as the Liberal government takes the province back into deficit in its final budget before the spring election.  After bringing the books into balance last year for the first time in a decade, the province’s fiscal plan projects a deficit of $6.7 billion in 2018-2019, followed by deficits of $6.6 billion and $6.5 billion in each of the subsequent years.  Ontario’s net debt, meanwhile, is projected to be $325 billion this year—or more than $22,500 per Ontarian—up from $308.2 billion expected as of March 31, 2018. The debt level is projected to grow to $360.1 billion by 2020-2021.

The Liberals’ decision to run a deficit reverses a key promise to stay in the black this year. The government had also previously projected the balance would extend to 2020. The province now anticipates its annual deficit will decrease gradually until 2024-2025.  The overall size of the budget, which pumps billions into healthcare, childcare and other programs, has grown to $158.5 billion this year, up nearly 12% from $141.1 billion last year.  Interest on debt remains the government’s fourth-largest spending area at $12.5 billion this year, and is projected to grow to $13.8 billion by 2020-21, and $16.9 billion by 2025-26.

So, where is all the money being spent? Click the link below for the top 10 highlights. I must admit some of the programs sound pretty good; but as tax payers we must remember nothing comes for free.

Here is a list of the Ontario budget 2018, Top 10 Highlights for your review

If you have any questions, please don’t hesitate to contact me.

Have a great weekend,

Tracey

 

Source: Leo Belmonte, Security Financial Services, Ministry of Finance Ontario