The 2004 Ontario Budget: Taming the Health Care Tiger

Several key changes were brought forth in the first budget of the current Ontario government’s mandate on May 18. Contrary to a key election promise, taxes were raised significantly and user fees were implemented and increased. At the same time, a large deficit put a significant constraint on future spending plans, with the health and education sectors showing modest growth and other program areas under severe restraint. Under the plan, the province will run a fiscal deficit until 2007-08. This synopsis discusses these changes, noting the shifts in policy direction that the Budget will bring about. The significant spending restraint in this Budget plan will be difficult to achieve. As such, this synopsis highlights the key risks to achievement of the Budget’s targets.