On March 26th, 2024, Ontario’s 2024 Budget was unveiled by Finance Minister Peter Bethlenfalvy, under the banner “Building a Better Ontario.” This budget represents a halfway point of the Ford Government’s second mandate, and the budget aims to strike a balance between economic uncertainties while investing in key priorities like housing, health care, and infrastructure.
Key Priorities
Building off the narrative the Ford Government has been framing since the 2022 election campaign, the budget is structured around two main themes: “Building Ontario” and “Working for You”. These themes signify the government’s ongoing commitment to investing in Ontario’s economy, infrastructure and workers.
Within these two themes, there were several key policy pillars including ‘Re-building Ontario’s Economy’, ‘Building Infrastructure, Highways and Transit in Your Communities’, ‘Working for Workers’, ‘Keeping Costs Down’, and ‘Better Services for You’.
Within these pillars, the government announced several new initiatives, including:
- An extension of the gasoline and fuel tax cut until the end of 2024.
- Introducing reforms to auto insurance to provide more affordable options to Ontarians.
- Providing an additional $100 million to the Invest Ontario Fund to attract additional investments in the province.
- Investing $49 million to support programs that combat auto theft and dismantle organized crime networks, including the purchase of four new police helicopters.
- Doubling the Ontario Community Infrastructure Fund to nearly $2 billion, which will be spread across the next five years.
- Investments in public services include an additional $965 million for hospitals, $50 billion over ten years for health infrastructure, $546 million in Primary Health Care over three years, and a $1.3 billion increase over three years to stabilize post-secondary institutions.
Economic Projections and Fiscal Outlook
Despite robust performance in 2023, the budget outlines a cautious economic forecast for 2024, with a projected $9.8-billion deficit. This is more than double the projection in the 2023 Fall Economic Statement as a result of continued government investment and slower economic growth over the next several years. The government is also dealing with notable fiscal impacts following the repeal of Bill 124 and negotiations with labour groups.
However, the government continues to emphasize the importance of a path to balance, anticipating a return to surplus by 2026-27.
What’s the Government Saying?
“In the face of global economic uncertainty and high interest rates that continue to put pressure on Ontario families, our government is taking a responsible approach by investing to rebuild Ontario’s economy without raising taxes. As we invest in key public services and infrastructure, including new roads, highways and the largest public transit expansion in North America, we refuse to offload the costs onto hardworking Ontario families or municipalities at a time when they’re counting on us to keep costs down.” – Peter Bethlenfalvy, Minister of Finance
What’s the Opposition Saying?
“This was an opportunity for Ford’s Conservatives to finally deliver real solutions for Ontarians. But Ford’s Conservatives chose to stick to the status quo. Ford is doubling down on their own failed policies.” – Catherine Fife, NDP Finance Critic
“This is a do-nothing budget. It’s not worth the paper it’s printed on. The Minister concedes economic growth is down and the debt and deficit are up, but he does nothing to help families and local businesses who are struggling…” – Bonnie Crombie, Leader of the Ontario Liberal Party
Next Steps
Given the Government of Ontario’s majority status, the accompanying legislation should be passed through the legislature this spring and Ministers will get to work executing on the commitments made in the Budget. The Ford Government was re-elected under the slogan of “Get it Done.” They will need to continue to show voters progress on many of the popular infrastructure and housing commitments they have made.
With the next election two years away, cost-of-living and economic concerns continue to remain top of mind for the people of Ontario. Through this budget, the Ford Government aims to strike a contrast with their competition by freezing fees, implementing no new tax hikes, and continuing their fight against the federal carbon tax. We can expect the Ford cabinet and caucus to continue to drive this contrast in the coming months as they begin to chart out a vision for re-election.