Ontario deficit rising by $5 billion; new major GTA highways and 'staycation' tax credit pledged

What is in Ontario's fall economic statement The Ford government's fall economic statement is looking beyond COVID-19 and is betting on infrastructure to help pave the way.

TORONTO — The Ford government is ramping up spending ahead of the June 2022 general election, with the deficit actually projected to rise by $5 billion this year, with spending planned for health-care, two new GTA highways and a tax credit for people to vacation in Ontario.

But if you were hoping for any cut to the high cost of gasoline in the province, something Premier Doug Ford suggested he might do when asked earlier this week, you’ll have to keep waiting.

The Fall Economic Statement tabled on Wednesday includes a 2021-2022 deficit of $21.5 billion, up $5.1 billion from the end of the 2020-2021 fiscal year.

The 2021-22 deficit figure is more than $11 billion below what was projected in the 2021 budget.

Wednesday's statement also projects deficits of $19.6 billion in 2022-23 and $12.9 billion in 2023-24.

Overall, spending is increasing by about $3 billion more than what was in the 2021-22 budget, in part due to spending on a raft of new measures in health-care, home-care, retirement homes, and initial work to build Highway 413 and the Bradford Bypass.

The Highway 413 project would link the Highway 401 and 407 junction to Highway 400, while the Bradford Bypass would offer an east-west link between Highway 400 and Highway 404.

While neither project has passed the design stage, the Fall Economic Statement earmarks up $1.6 billion for the projects within a larger fund dedicated to the upkeep of all highways.

Officials would not quantify how much money of the $1.6 billion is going to either project, saying they have not yet been put out to tender.

Also earmarked is $270 million for a first of its kind “Ontario Staycation Tax Credit.”

Under this program, people who take a trip anywhere in Ontario in 2022 will be able to claim up to 20 per cent of the cost of a trip, up to $1,000 for an individual or $2,000 for a family.

They are also extending a tax credit aimed at keeping seniors in their homes with retrofits, as well as a COVID-designed credit for job retraining for 2022, at a combined cost of $80 million.

Spending in health-care is rising by $541 million over the next three years to increase the availability of nurses and personal support workers for home-care.

The province is also spending $922 million to continue wage increases for personal support workers through 2022.

Fare-starved municipal transit agencies are also getting $345 million in help.

There is also $10 million extra to help First Nations conduct surveys for unmarked graves around former residential schools and obtain death registration records for free.

In education and childcare, school boards are getting millions more to support COVID-19 measures and learning catch-up in schools, but overall base funding for education appears to be going down from what was pledged in the 2021 budget.

An additional $760 million in “COVID time-limited” funding was added for education, bringing the government’s total spending to $31.56 billion.

The Fall Economic Statement document also hints at why the Ford government is not yet ready to cut gas taxes as the premier pledged this week.

Gas tax revenue has been hammered due to the pandemic, with many workers not commuting at all.

Gas tax revenues are down $629 million from what was projected in March 2021.