McGuinty Moves Swiftly to Tackle Deficit

Immediately following the release of the report by former Provincial Auditor Erik Peters, which identified a $5.6 billion deficit, Premier McGuinty announced a series of measures aimed at getting the province’s finances back into balance.

Many of the cost-saving steps were promised during the recent provincial election campaign.

Here are the highlights:

• Corporate tax reductions announced by the previous government will be rolled back generating an estimated $1.2 billion next year,
• Personal income tax rates reductions will be cancelled, resulting in an additional $900 million next year,
• The seniors’ property tax credit will be eliminated, restoring $450 million in revenue to the provincial treasury,
• The private school tax credit will also be eliminated for a saving of $195 million,
• Tobacco taxes will be increased to the national average bringing in another $140 million per year.

The premier also said the government will make efforts to collect taxes owed by corporations, institute a government-wide hiring freeze, reduce the use of consultants, and eliminate “self-promotional government advertising”.

Source: United Ways of Ontario's Government Relations Bulletin - Issue dd Nov. 7, 2003

* New Government, New Ministries, and New Committees
* McGuinty Moves Swiftly to Tackle Deficit
* Food Banks Struggle with Growing Hunger
* Study Cites Factors Driving Dramatic increase in Children’s Aid Cases
* Ontario to End Hydro Rate Freeze
* Commission Seeks Removal of Barriers for Disabled Students
* B.C.’s Two-Year Welfare Cut-off Challenged

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Page last updated Nov. 7, 2003