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
B.C. tenants evicted for landlord's use after refusing large rent increase to take over neighbouring suite
Ashley Dickey and her mother rented part of the same Coquitlam duplex in three different decades under three different landlords.
Mountain guide dies after falling into a crevasse in Banff National Park
A man who fell into a crevasse while leading a backcountry ski group deep in the Canadian Rockies has died.
Expert warns of food consumption habits amid rising prices
A new survey by Dalhousie University's Agri-Food Analytics Lab asked Canadians about their food consumption habits amid rising prices.
MPP Sarah Jama asked to leave Ontario legislature for wearing keffiyeh
MPP Sarah Jama was asked to leave the Legislative Assembly of Ontario by House Speaker Ted Arnott on Thursday for wearing a keffiyeh, a garment which has been banned at Queen’s Park.
Charlie Woods, son of Tiger, shoots 81 in U.S. Open qualifier
Charlie Woods failed to advance in a U.S. Open local qualifying event Thursday, shooting a 9-over 81 at Legacy Golf & Tennis Club.
Ex-tabloid publisher testifies he scooped up possibly damaging tales to shield his old friend Trump
As Donald Trump was running for president in 2016, his old friend at the National Enquirer was scooping up potentially damaging stories about the candidate and paying out tens of thousands of dollars to keep them from the public eye.
Here's why provinces aren't following Saskatchewan's lead on the carbon tax home heating fight
After Prime Minister Justin Trudeau said the federal government would still send Canada Carbon Rebate cheques to Saskatchewan residents, despite Saskatchewan Premier Scott Moe's decision to stop collecting the carbon tax on natural gas or home heating, questions were raised about whether other provinces would follow suit. CTV News reached out across the country and here's what we found out.
Montreal actress calls Weinstein ruling 'discouraging' but not surprising
A Montreal actress, who has previously detailed incidents she had with disgraced Hollywood producer Harvey Weinstein, says a New York Court of Appeals decision overturning his 2020 rape conviction is 'discouraging' but not surprising.
Caleb Williams, Jayden Daniels and Drake Maye make it four NFL drafts with quarterbacks going 1-3
Caleb Williams is heading to the Windy City, aiming to become the franchise quarterback Chicago has sought for decades.