This afternoon, Honourable Peter Bethlenfalvy, Ontario’s Minister of Finance, delivered the 2021 Budget in the Ontario Legislature. This budget, named “Ontario’s Action Plan: Protecting People’s Health and Our Economy'', focuses on investments towards the next phase of the COVID-19 pandemic. This budget makes significant investments towards the province’s health care system and protecting Ontario’s economy.
The economic overview shows that Ontario’s gross domestic product (GDP) has declined by 5.7% and the province’s deficit is projected to be $33.1 billion in 2021-22. Ontario has, however, gained $829,400 new jobs since June 2020.
The 2021 Budget’s total expense outlook is $3.2 billion higher than the 2020 Budget forecast, resulting in a total of $190 billion.
This budget builds on previous actions made by the government by adding an investment of $6.1 billion, which brings the total provincial COVID-19 response to $51 billion over four years.
This budget covers investments in two pillars:
$16.3 billion in Protecting People’s Health
$23.3 billion in Protecting Our Economy
PILLAR 1: PROTECTING PEOPLE’S HEALTH
Ontario is investing $1 billion towards the province-wide vaccination plan and $2.3 billion for testing and contact tracing. The government’s Ontario’s Three-Phase Vaccine Distribution Plan includes:
Phase 1 (December 2020 - March 2021)
Targeting high-risk populations of about 1.8 million Ontarians including:
Congregate living for seniors
Health care workers
Adults aged 80 years and older
Adults in First Nations, Metis and Inuit communities
Phase 2 (April 2021 - July 2021)
Aiming of mass deliveries to about 9 million Ontarians including:
Adults aged 60-79
Those with high-risk conditions
At-risk populations
Phase 3 (July 2021 - onwards)
Aiming towards a steady state by targeting the rest of the population
The highlights of this pillar include the following investments:
Total of $3.7 billion over two years for a comprehensive testing strategy
Over $1.4 billion for personal protective equipment (PPE)
Additional $50 million in the Ontario Together Fund to increase domestic production of PPE
Hospitals
Additional $5.1 billion since the beginning of the pandemic to support hospitals, including $1.8 billion in 2021-2022 to address surgical backlogs
Additional $3 billion to support hospital projects
Long-Term Care (LTC)
Additional $933 million over four years to building 30,000 LTC beds
Additional $650 million in 2021-2022 towards new LTC facilities
Over $121 million to support the training of 9,000 personal support workers (PSWs)
$4.9 billion over four years to increase the average direct care in LTC homes to 4 hours a day
$2 million over two years to attract new PSWs and nurses to work in LTC homes
$160 million over three years to support the Community Paramedicine for Long-Term Care program
Mental Health and Addictions
Additional $175 million in 2021-2022 for mental health and addictions support
$7 million in 2020-2021 to increase access to these services for postsecondary students
Housing
$18.5 over three years for housing support for victims of domestic violence and human trafficking
$240 million over four years to support rehabilitation services for children and youth with special needs
$18.2 million to address violence against First Nations, Inuit and Metis women
PILLAR 2: PROTECTING OUR ECONOMY
This pillar outlines the province’s plan to provide additional relief and support for families, workers and employers.
The highlights of this pillar include the following investments:
$260 million in support through the temporary Ontario Jobs Training tax credit
$614.3 million towards employment and training supports
Additional $61 million towards the Regional Opportunities Investment Tax Credit for northern and southern regions of Ontario
$980 million for the Ontario COVID-19 Child Benefit
$75 million increase in 2021 for the Childcare Access and Relief from Expenses tax credit
Schools, Colleges and Universities
Over $40 million over two years to improve remote learning technology
Additional $21.4 million over two years to the Virtual Learning Strategy for postsecondary students
$14 billion in grants over ten years to build more schools
Builds on the $4 billion federal-provincial Safe Restart Agreement, the government is investing almost $1 billion in additional COVID-19 financial relief
Modern Government
$500 million through the Ontario Towards Acceleration Fund to bring improved delivery of government services through digital means
Investments to develop a legal internet gaming market called iGaming
Protecting Ontario's Environment
$56.4 million over the next four years to create the new Ontario Vehicle Innovation Network
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