November 2019
Ontario Releases 2019 Fall Economic Statement

2019-11-07 9:30:34 AM

CATEGORIES: Finance

Ontario Minister of Finance Rod Phillips released the government’s 2019 Fall Economic Statement, Building Ontario Together. Minister Phillips outlined the government’s forecasted economic growth and sought to demonstrate how investments will be made to critical public services and create jobs.

The government is predicting to beat its deficit target for 2019-20 by $1.3 billion to reduce the deficit to $9 billion in 2019-20 and forecasting economic growth of will grow by 1.4% in 2019, 1.5% 2020, 1.5% in 2021, and 1.9% in 2022.

General highlights of the economic statement include:

  • Investing $278.5 million into the provincial autism program  

  • Reduce the small business Corporate Income Tax rate from 3.5% to 3.2% effective January 1, 2020

  • $310 million investment into social assistance programs

  • Reduce funding to the Ontario Student Assistance Program (OSAP) by $700 million

  • Reduce the aviation fuel tax rate in the North from 6.7 cents per litre and 2.7 cents per litre as part of an effort to reduce the cost of living in the North.


The Fall Economic Statement also has implications for municipal governments, some of which were
previously announced, including:

  • $41 million in funding for public health and $26 million for land ambulance services

  • Funding for 39 large urban municipalities for service delivery and line-by-line reviews through the established Audit and Accountability Fund. $6 million in funding will be extended to these municipalities annually through 2022-23 for additional reviews.

  • Extending the Municipal Modernization Program to provide an additional $125 million in funding for 405 small and rural municipalities through 2022-23 to find and implement efficiencies in service delivery.

  • The government will launch two consultations on two initiatives:

    • Potential alignment of the municipal and provincial fiscal years

    • Legislative amendments to combine the provincial and municipal voters’ list


For more information, please see below:

Ministry of Finance: 2019 Ontario Economic Outlook and Fiscal Review

Ontario Newsroom: Ontario Government Beating Fiscal Targets While Investing in Priority Programs

AMCTO: 2018 Ontario Fall Economic Statement


 


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