Today, Ontario’s Minister of Finance, the Honourable Peter Bethlenfalvy, announced the 2022 Fall Economic Statement at Queen’s Park. The Statement, named Ontario’s Plan to Build: A Progress Update, reveals the latest fiscal update. Minister Bethlenfalvy emphasized a focus on putting “more money back into the pockets of the people”, building infrastructure, and creating more jobs for the people of Ontario.
Ontario’s Plan to Build: A Progress Update is centered around economic growth and supporting Ontarians with the high cost of living they are experiencing. Key topics include a focus on the cost of living, cutting red tape, skills training, support for small businesses and support for senior citizens.
Summary
The provincial surplus for the 2022-2023 fiscal year is significantly higher than forecasted with a $2.1 billion surplus, as opposed to the $33-billion deficit initially projected in the 2022 budget. A $12.9 billion deficit is projected for the 2022-23 year.
The Government of Ontario is expecting a real GDP growth of 0.5% in 2023, 1.6% in 2024 and 2.1% in 2025. These figures are down from the previous projections of the Government. The former projections were 3.1%, 2% and 1.9% respectively.
The Government of Ontario also released the first ever Building Ontario Progress Report along with the Statement today. The report includes information and transparency on how key infrastructure investments are progressing.
Highlights from the Statement include:
Cost of Living
The Government of Ontario will be cutting the gas and fuel tax for another year. This extension of the tax rate cut will save the average Ontario household approximately $195 from July 1, 2022 and December 31, 2023.
Adjusting the maximum monthly amount for the Assistance for Children with Severe Disabilities program annually to inflation, beginning in July 2023./ dollar compared to the prior 50 cent.
Infrastructure
Approximately $25.1 billion over the next ten years will be invested into highway building.
Construction on Highway 413 & Branford Bypass will continue as expected.
Both Unionville and Rutherford GO stations construction will continue as expected.
Investing $40 billion over the next 10 years in hospital infrastructure.
Cutting Red Tape
Refocusing red tape reduction efforts and creating consultation groups from key industries across the province.
Committing to clearing provincial supply chain delays, accelerating industrial land approvals and permitting, and working to remove interprovincial trade barriers.
Supporting Small Businesses
Increasing the number of small businesses that can receive the small business tax credit, saving $185 million of tax relief over the next three years, and benefiting 5,500 small businesses.
Skills Training
Providing an additional $40 million in 2022-23, and $30 million in new funding, for a total investment of $145 million to the latest round of the Skills Development Fund this year.
Investing $4.8 million over two years, beginning in 2023–24, to expand the dual credit program to encourage students to enter careers in the skilled trades or the Early Childhood Educator career pathway.
Helping Low-Income Seniors
Doubling payments for the Ontario Guarantee Assistance Program from 2023 (estimated $1000 per person increase).
The maximum increase for the payment for single seniors will change from $166 a month to $332 a month for couples.
Improving Assistance for People with Disabilities
Increasing the Ontario Disability Support Programs (ODSP) by $1000-2000 more a month.
The monthly maximum from ODSP payments will be increased to $1,000 from $200.
Before, each additional dollar earned after their benefit reduced the payments by 50 cents, now, each dollar after $1,000 will only reduce the benefit by 25 cents.
Will be adjusting the maximum monthly amount for the Assistance for Children with Severe Disabilities program to inflation beginning July 2023.
Clean Energy
Proposing legislation to launch a voluntary clean energy credit (CEC) registry to provide businesses with a tool to meet sustainability goals and demonstrate that their electricity has been sourced from clean resources.
Entertainment Industry
Ontario is expected to expand eligibility for the film and television tax credit in the coming months.
Watch Ontario Finance Minister Peter Bethlenfalvy deliver the 2022 Ontario Fall Economic Statement
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