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Taking Strong Action to Encourage Economic Growth, Create Jobs and Eliminate the Deficit

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Taking Strong Action to Encourage Economic Growth, Create Jobs and Eliminate the Deficit

McGuinty Government Transforming Public Services, Protecting Schools and Hospitals

Ministry of Finance

The passage of the Strong Action for Ontario Act (Budget Measures) launches the next phase of a plan to grow the economy, create jobs and eliminate the deficit while building on the gains made in health care and education. 

The 2012 Budget also sets out a strong plan to transform and strengthen the public and broader public sectors -- to change the way they deliver services to Ontario families while providing better value for money and better results. The plan does not include across-the-board cuts to public services that would hurt families and do not yield long-term successes. 

Over the medium term, the government is projecting deficits of $14.8 billion in 2012-13, $12.8 billion in 2013-14 and $10.1 billion in 2014-15. The government projects a $0.5 billion surplus in 2017-18.

The McGuinty government's 2012 Budget takes strong action to eliminate Ontario's deficit by 2017-18 while protecting health care and education, which is essential to creating jobs and growing the economy.

Quick Facts

  • Key measures in the 2012 Budget include:
  • Protecting the gains made in education while building the world's best-educated workforce by: fully implementing full-day kindergarten by September 2014; maintaining small class sizes; continuing to provide the 30% Off Ontario Tuition grant for eligible full-time undergraduate university and college students; and integrating training programs to make them more responsive to today's job market.
  • Protecting the gains made in health care while creating a sustainable, high-quality health care system by: reducing the rate of growth of spending to an average of two per cent annually over the next three years; enhancing community-based care to treat more patients at home and in their communities; and moving to patient-based funding models to improve the value and quality of care patients receive.
  • Introducing $4.9 billion in planned savings over the next three years by removing overlap and duplication, implementing more efficient delivery models and focusing on core business.
  • Planned savings of $6 billion over the next three years through restraint in compensation for school boards, payments to doctors and others in the public sector, and a further $6.8 billion over the next three years by containing costs across the broader public sector.
  • Proposing to freeze the general Corporate Income Tax rate and Business Education Tax rate reductions until the budget is balanced.
  • Extending the pay freeze for executives at hospitals, colleges, universities, school boards and agencies until the deficit is eliminated.
  • Extending the pay freeze for MPPs for two years - for a total of five years.
  • Ensuring Ontario user fees recover more of the cost of providing programs and services.

Additional Resources

Quotes

“The McGuinty government continues to build on its record of meeting its fiscal targets. By choosing to take strong action, outlined in the 2012 Budget, we will continue to protect the gains we have made in education and health care, while transforming public services and eliminating the deficit by 2017-18.”

Dwight Duncan

Minister of Finance

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