Ontario's 2022-23 deficit falls to $18.8 billion; revenue and interest costs climb
Ontario’s 2022-23 deficit will be $1.1 billion smaller than forecast three months ago, as tax revenue grew faster than rising interest costs on the province’s ballooning debt.
The province’s latest disclosure of its finances shows that the deficit for the year is now $18.8 billion, down $1.1 billion from the Ford’s pre-election estimate.
- Download our app to get local alerts to your device
- Get the latest local updates right to your inbox
Tax revenue is up $1.2 billion, while the cost of servicing the province’s $427 billion net debt rose by $105 million due to rising interest rates.
Finance Minister Peter Bethlenfalvy said the entirety of the new net revenue would be put against the deficit, with no new funding so far to overcome the ongoing hospital closure crisis.
“I think it’s important we have a prudent and flexible plan going forward and we‘ve done that in this budget,” Bethlenfalvy said.
Ontario Minister of Finance Peter Bethlenfalvy tables the budget after Lt.-Gov. Elizabeth Dowdeswell delivered her Speech from the Throne at Queen's Park in Toronto, on Tuesday, August 9, 2022. THE CANADIAN PRESS/Andrew Lahodynskyj
All spending is unchanged from the April 28 budget which was formally re-tabled in the legislature on Tuesday afternoon, save for a five per cent increase in monthly Ontario Disability Support Program (ODSP) payments promised during the election campaign and a new cash offer to parents.
Also contained in the throne speech was a pledge for more cash to parents of school age children.
The province is earmarking $225 million to give to parents as a means to “help their kids catch up” with learning impacted by prolonged school closures during the COVID-19 pandemic.
Using 2021 estimates of expenditure from similar programs, the money amounts to between $90 and $100 per child.
A ministry of finance spokesperson said the government is still unsure if the money will be relayed to parents in the form of a tax credit or direct transfer, but Bethlenfalvy called it a “direct payment.”
Both new commitments will be funded out of a $1 billion reserve and other contingency funds.
“Parents who know their children best can provide the tutoring type support that their children need,” Bethlenfalvy said.
He fielded repeated questions from reporters about why ODSP rates could not be increased further given the improving fiscal picture, given the increased rate will still leave recipients in poverty.
“I understand that the environment is difficult and challenging, and that’s why we made a commitment to increase it by five per cent, that’s why we made a commitment to adjust it to inflation, and we’re one of only three provinces doing that.”
The slump in the province’s once red-hot housing market is also weighing on the province’s revenues, with land transfer tax revenue forecast to be $787 million less this year than forecast in late April.
That decline is more than offset by rising sales tax, income tax and corporate tax revenues.
NDP interim leader Peter Tabuns said the hospital situation and rampant inflation were grave enough that the province should have amended its budget.
"Given that inflation has soared since they tabled previously, given the depth of the (hospital) we’re facing they should have substantially amended the budget, they needed a course correction as my colleague has said."
CTVNews.ca Top Stories
NDP calls out Conservatives for effort to squash pharmacare legislation
The federal New Democrats are calling out Conservative Leader Pierre Poilievre and his party for trying to block the bill that could pave the way for millions of Canadians to access birth control and diabetes coverage.
Stamp prices rise for the third time in five years amid financial woes for Canada Post
Canada Post is increasing stamp prices for the third time since 2019, a move the Crown corporation says is a "reality" of its sales-based revenue structure.
Winnipeg man admits to killing four women, argues he's not criminally responsible
Defence lawyers of Jeremy Skibicki have admitted in court the accused killed four Indigenous women, but argues he is not criminally responsible for the deaths by way of mental disorder – this latest development has triggered a judge-alone trial rather than a jury trial.
An El Nino-less summer is coming. Here's what that could mean for Canada
As Canadians brace themselves for summer temperatures, forecasters say a weakening El Nino cycle doesn’t mean relief from the heat.
Mediterranean staple may lower your risk of death from dementia, study finds
A daily spoonful of olive oil could lower your risk of dying from dementia, according to a new study by Harvard scientists.
A subset of Alzheimer's cases may be caused by two copies of a single gene, new research shows
For the first time, researchers have identified a genetic form of late-in-life Alzheimer’s disease — in people who inherit two copies of a worrisome gene.
Ontario MPP asked again to leave Ontario legislature over keffiyeh, Speaker loosens ban
An Ontario MPP was asked again to leave the Ontario legislature on Monday for wearing a keffiyeh, a garment that was banned by the Speaker last month due to its political symbolism.
WATCH Avian flu: Risk to humans grows as outbreaks spread, warns expert
H5N1 or avian flu is decimating wildlife around the world and is now spreading among cattle in the United States, sparking concerns about 'pandemic potential' for humans. Now a health expert is urging Canada to scale up surveillance north of the border.
Trudeau Liberals to unveil new bill Monday aimed at countering foreign interference
Democratic Institutions Minister Dominic LeBlanc will be tabling legislation on Monday aimed at countering foreign interference in Canada. Federal officials have scheduled a technical briefing on the incoming bill for Monday afternoon.