In his Budget today, Ontario’s Finance Minister Mr. Dwight Duncan avoided making any of the “tough choices" necessary to balance the budget earlier than the planned 2018 fiscal year. Although his government came in $3 billion ahead of its original projected $19.7 billion deficit, it can be attributed in large part to a reduction in spending on digital health records at eHealth Ontario and from fewer laid-off workers being retrained. His 2011 Budget contains no perceptible cuts to programs or expenditures. With a provincial election scheduled for October, this Budget is a key indicator of the Liberal’s planned campaign platform.

Here are some of the highlights:

• Ontario’s real GDP is projected to increase by 2.4% in 2011, 2.7% in 2012 and 2013 and 2.6% in 2014.
• Ontario government revenues are projected to increase by 5.6% in 2011/2012 which will finally mean a return to 2007/2008 pre-recession revenue levels.
• Full time employment levels still have not returned to pre-recession levels. During the recession Ontario lost 257,000 net jobs. To February 2011, 233,000 net jobs were created.
• No significant corporate or personal tax changes proposed.
• Since the liberals taking power in 2003, total provincial spending has increased by nearly 70%.
• Ten cents of every dollar taken in by Ontario this fiscal year went to pay interest on its debt; more than the entire budget for post-secondary education in the province.
• Standard and Poor’s has warned the province that Ontario’s growing deficit risks a downgrading of its credit rating and a resulting increase in borrowing costs. The Budget itself indicates that a 1% increase in interest rates will cost Ontario taxpayers an additional $500 million.

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