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Highlights of Ontario's 2022 Budget on Highway infrastructure & Hospitals

Written by Judy Lamelza | May 1, 2022 4:14:44 PM

The province's 2022 Budget titled Ontario's Plan to Build lays out $198.6 billion in spending, with billions earmarked for infrastructure this year and over the next decade and pledges $158.8 billion over 10 years for highways, transit and hospitals.

The Globe and Mail states that much of the budget rehashes commitments the government made in recent months, including a planned 50-cent increase to the minimum wage in October.

Ontario's Plan to Build focuses on driving economic recovery from the COVID-19 pandemic by investing in the construction of highways, transit infrastructure and hospitals.  Here are the highlights:

 

Budget Deficit

The government's deficit is projected to spike to $19.9-billion in 2022-23, up $6.4-billion from the most recent fiscal year, but a $1-billion reserve fund could bring those numbers down. 

With the revenue expected to rise by 4 percent a year, the deficit would gradually decline starting in 2023, with the books balanced by 2027-28.

 

Tax Credits

The government is proposing to introduce and expand tax credits, but the budget doesn't act on Premier Doug Ford's 2018 election campaign promise to cut income taxes by 20 per cent. Instead, the Low Income Individuals and Families Tax credit is being expanded to support residents making an annual income up to $50,000. It was previously capped at $38,500.

Also being proposed is a new tax credit to help seniors 70 and older pay for medical expenses. Eligible recipients would receive up to 25 per cent of their medical expenses for a maximum credit of $1,500.

 

Highways

The government reiterated in the budget of its plans to build or expand highways - at a cost of $25.1-billion over the next 10 years. This includes an added investment of $4-billion from what was earmarked last year.

Cost details were not provided for individual projects such as Highway 413 and the Bradford Bypass, two contentious planned routes that the government is expected to make cornerstones of its campaign for re-election.

Other commuter projects given the green light include:

 

 - Starting work on widening Highway 401 between Oshawa and Port Hope

 - QEW Garden City Skyway rehabilitation project

 - New bridge over Welland Canal connecting St. Catharines to Niagara-on-the-Lake

 

According to The Star, the province says it will spend nearly $493 million this year to get shovels in the ground for previously announced projects in northern Ontario such as:

 

 - The twinning of Highway 17 between Kenora and the Manitoba border

 - Broadening of Highway 69 between Parry Sound and Sudbury

 

The government says it will change auto insurance rules. It will give drivers more choice and ensure fairness when it comes to insurance, while also cracking down on fraud.

Drivers will be able to better customize insurance to their needs and buy coverage that is based on vehicle usage. Other measures include:

 

 - Cancellation of license plate fees

 - Rebates for those who already paid 

 - Temporary elimination of gas and fuel taxes

 

Health Care

The Globe and Mail also states that the government plans to boost spending on health care infrastructure by $10-billion over the next 10 years, adding to the $30-billion previously budgeted. This will help to increase hospital capacity with 3,000 additional beds across the province.

The province would also spend $764-million over two years to provide nurses with a $5,000 retention bonus and also plans to provide $1-billion to expand the home care system.

 

Labour

This year's budget doubled down on some previous policy initiatives aimed at easing the labour shortage and boosting the pay of low-income workers.

On the labour front, the budget focused on pumping money - more than $1-billion annually - into a range of provincially run agencies and programs geared toward:

 

 - Retraining workers

 - Getting more people interested in the skilled trades

 - Addressing the skills gap

 

The government will invest an additional $114.4-million over three years in its Skills Trades Strategy program, which will provide financial support for those who enroll in apprenticeship programs at local colleges.

The budget also promises more funding - $268.5-million over three years - to revamp Employment Ontario, an agency that matches workers with employers, and guides workers to specific retraining programs.

The government will also allocate $5-million to the Better Jobs Ontario training program. It will help people who are on social assistance, self-employed, newcomers and gig workers, and give them $28,000 in financial aid for tuition and other associated costs to enroll in college, university or vocational training programs.

 

Environment

The budget highlights a focus on electric-vehicle components and a commitment of $29-million in exploration and innovation funding related to clean-energy transitioning with larger sums promised for related infrastructure.

It also notes the launch earlier this month of a strategy to make low-carbon hydrogen, including an electricity rate cut for a major production facility in Niagara Falls.

It also includes many hundreds of millions of dollars in subsidies, alongside the federal government, to land electric-vehicle manufacturing commitments from major automakers.

 

Education

The Ontario government says it will launch a pilot project with school boards to expedite construction of schools. The budget included $14-billion in capital grants for schools over the next 10 years, which includes $1.4-billion in 2022-23 to address the repairs backlog.