Ontario’s books still balanced despite increased spending, Sousa says
The treasurer tabled the province’s first quarter finances on Friday revealing that Ontario’s economy grew by 1 per cent during the quarter, outperforming Canada, the U.S., and the rest of the G7 nations.
TheStar.com
Aug. 11, 2017
Robert Benzie
Ontario’s books are still in the black despite increased spending on childcare and cleaning up the mercury-contaminated Wabigoon River.
The treasurer tabled the province’s first quarter finances on Friday, revealing that the province’s revenues are projected to be $141.8 billion this year, an increase of $145 million.
Finance Minister Charles Sousa said program expenses are expected to be $129.6 billion, which are also up $145 million due to a new agreement with Ottawa on early learning and childcare.
Sousa said the treasury’s interest on the provincial debt this year is still $11.6 billion and Ontario’s $600 million in reserve funds also remains unchanged.
“We are encouraged by the influx of many innovative and dynamic businesses that are investing across the province, bringing good jobs, higher wages and greater prosperity to our communities,” he said in a statement.
The minister vowed that the Liberal government, which finally eliminated the deficit this spring after nine years in the red, would “continue to implement our balanced plan to build a healthy and sustainable economy for all of Ontario.”
Among the in-year changes was $85 million for remediation of the English-Wabigoon River that has poisoned the people of Grassy Narrows First Nation and nearby Whitedog First Nation for generations.
Queen’s Park moved to tackle the polluted river following a Star investigation that revealed the impact of the poisoning after decades of inaction by successive Liberal, Progressive Conservative, and NDP governments.
“I have never seen a case of such gross neglect. I am embarrassed as a Canadian that this ever happened and I can’t understand how people for 50 years sat in that environment office knowing this was going on as a minister and simply didn’t do anything about it,” then environment minister Glen Murray said in June when he announced the funding.
Sousa said “stronger-than-expected economic activity” from January to March has been propelled by a growing U.S. economy and low oil prices that have kept the Canadian dollar competitive against the American greenback.
Indeed, Ontario’s economy grew by 1 per cent during the quarter, outperforming Canada, the U.S., and the rest of the G7 nations.
On average, private-sector forecasters now predict the province’s gross domestic product will increase by 2.7 per cent this year – up from the 2.4 per cent projected in the budget.
Other changes since the spending plan was introduced on April 27, include $14.8 million to help compensate Indigenous people affected by the Lac des Mille Lacs flooding and $2.5 million for famine relief efforts in Nigeria, Somalia, South Sudan, and Yemen.
