The 2006 Ontario Budget targets the province’s long-standing infrastructure deficit and growing demand for health care with money from unexpected increases in personal and corporate tax collections.
2006 Ontario Budget: Unexpected Gains to Be Spent on Infrastructure, Health
2006 Ontario Budget: Unexpected Gains to Be Spent on Infrastructure, Health
Provincial Economic Analysis
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Rather than eliminate the deficit before 2007–08, the Ontario government will spend an extra $1.2 billion on transportation infrastructure, including public transit, roads and bridges.
Health-care spending will also be lifted above the constrained amounts called for in the 2005 Budget.
Money for the increased spending is coming from a $3-billion revenue gain due to increases in personal and corporate tax collections and to lower-than-expected debt financing.
The budget’s pessimistic outlook for economic growth assumes a stronger Canadian dollar and higher interest rates than what Signal49 Research is forecasting. Also, budget assumptions do not include the stimulative effect of the expected federal GST cut.
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