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Epidemics

Ontario's Economic Recovery to be Fueled by Growth, Not Tax Hikes or Spending Cuts

Strategic Insights

— 1 min read

The Ontario government has outlined its agenda in a Throne Speech, which focuses on the pandemic and its economic recovery. Despite "significant fiscal challenges" ahead, the government says it will not impose "painful tax hikes or spending cuts" but instead rely on boosting economic growth. The speech also pledged to build new roads and highways, expand public transit, and improve long-term care homes, but was criticized by opposition leaders for lacking new initiatives.

Key Takeaways:

  • The Ontario government's Throne Speech emphasized the importance of economic growth in recovering from the pandemic, rather than relying on tax hikes or spending cuts.
  • The province's deficit came in at $16.4 billion last year, with significant fiscal challenges ahead due to unprecedented levels of spending.
  • The government pledged to build new roads and highways, expand public transit, and improve long-term care homes, with legislation coming this fall to improve accountability and enforcement in the sector.
  • Opposition leaders criticized the speech for lacking new initiatives to help patients, students, workers, or businesses, and for not enacting powers to fine long-term care homes for violating existing rules.
  • The government will move a motion on Tuesday to replace MPP Rick Nicholls as deputy speaker with PC MPP Bill Walker.
  • More details on the government's plans are expected to be revealed in a fall economic statement due within weeks.

Statistics:

  • Ontario's deficit came in at $16.4 billion last year, less than half the record $38.5 billion originally forecast.
  • Over 3,800 residents and staff died with COVID-19 in long-term care homes despite the government's promise of an "iron ring" of protection.
  • The government's new long-term care legislation is expected to come into effect this fall.
  • The province's long-term care legislation aims to improve "accountability, enforcement and transparency" in the sector.

Sources:

  • The Globe and Mail, September 20, 2021.

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