The Honourable Charles Sousa, Minister of Finance
Table of Contents
Foreword
Chapter I: A Plan for Care
- Introduction
- Better Health Care for Everyone in Ontario
- Expanding Access to Mental Health and Addictions Services
- Increasing Access to Publicly Funded Psychotherapy
- Expanding Services for Children in their Communities
- Increasing Access to Mental Health Services for Students
- Ontario’s Strategy to Combat the Opioid Crisis
- Expanding Supportive Housing for Mental Health
- Supporting Priority Populations
- Increasing Caregiver and Family Supports
- Making Child Care More Accessible and Affordable
- Better Care for Seniors
- Removing Barriers and Providing Better Care
- Strengthening Income Security
- Investing in Affordable Housing
- Improving the Justice System
Chapter II: Growing the Economy and Creating Good Jobs
- Introduction
- Introducing a Good Jobs and Growth Plan
- Making Postsecondary Education More Affordable
- Investing in Postsecondary Education Infrastructure
- Giving Students a Strong Foundation
- Preparing for Success in High School
- Refreshing Curriculum and Assessment to Support Student Achievement
- Enhancing Education in Career/Life Planning
- Growing the Specialist High Skills Major Program
- Enhancing Access and Engagement through Digital Learning
- Focusing on Well-Being, Equity and New Approaches to Learning
- Investing in Schools
- Welcoming Immigrants and Attracting International Talent
- Improving Business Competitiveness
- Attracting and Retaining Major Investments in Ontario
- Supporting Innovation, Startups and Scale-Ups
- Supporting Regional Economic Development
- Reducing Ontario’s Electricity Costs for Businesses
- Reducing Red Tape
- Supporting a Competitive Tax Environment
- Continuing to Support Small Business
- Reviewing Government Supports for Beverage Alcohol
- Accelerating and Diversifying Trade in Ontario
- Championing Women’s Economic Empowerment
- Fostering Fair Workplaces
- Strengthening and Modernizing Retirement Security
- Delivering Electricity Rate Relief through Ontario’s Fair Hydro Plan
- Investing in Ontario’s Low-Carbon Economy
- Protecting the Environment for Ontario Families
- Building Tomorrow’s Infrastructure Today
- Trillium Trust
- Investing in Transit and Transportation Infrastructure
- Improving Mobility and Connectivity across the Province
- Green Transportation Infrastructure
- Other Investments in Transportation Infrastructure
- Moving Forward on Transportation Plans
- Supporting Community Benefits
- Investing in Digital Infrastructure
- Investing in Cybersecurity
- Culture and Recreation Infrastructure
- Investing in Ontario’s Communities
- Implementing the Fair Housing Plan
- Protecting Consumers and Investors
- Increasing Rights and Protections when Accessing Credit Reports
- Championing Financial Empowerment
- Modernizing the Regulation of Insurance
- Creating the Financial Services Regulatory Authority of Ontario
- Establishing the Cooperative Capital Markets Regulatory System
- Making Auto Insurance More Affordable
- Regulating Financial Planners
- Strengthening Protection for Investors in Syndicated Mortgages
- Modernizing the Legislative Framework for Co-Operative Corporations
- Updating Capital Markets Law
- Investments in Innovation and Transformative Technologies
Chapter III: Ontario’s Economic and Fiscal Strength
Section A: Economic and Fiscal Overview
- Introduction
- Ontario’s Balanced Budget
- Ontario’s Economic Performance
- Medium-Term Fiscal Plan
- A Responsible Fiscal Recovery Plan
- Making Government Services Work Better for Ontarians
- Government Transparency and Financial Management
Section B: Economic Outlook
- Economic Outlook
- Ontario’s Recent Economic Performance
- Global Economic Environment
- Outlook for Continued Economic Growth
- Risks to Ontario’s Economic Outlook
- Ontario Economic Outlook Details
- Private-Sector Forecasts
- Comparison to the 2017 Budget
Section C: Fiscal Plan
- Ontario’s Fiscal Plan
- 2017–18 Interim Fiscal Performance
- Medium-Term Fiscal Plan
- Details of Ontario’s Finances
Section D: Borrowing and Debt Management
- Introduction
- Long-Term Public Borrowing
- Ensuring Preferred Market Access
- Leading Canadian Dollar Green Bond Market
- Extending Term of Borrowing
- Interest on Debt Savings and Affordability
- Ensuring Adequate Liquidity Levels
- Reducing Net Debt-to-GDP
- Total Debt Composition
- Cost of Debt
- Limiting Risk Exposure
- Using Derivatives to Mitigate Risks
- Reducing Ontario’s Electricity Sector Stranded Debt
- Consolidated Financial Tables
Chapter IV: Fairness and Opportunity through Partnerships
Section A: Working with Indigenous Partners
- Introduction
- Working in Partnership to Support Indigenous Children and Youth
- Enhancing Indigenous Health Care
- Urban Indigenous Action Plan
- Providing Additional Assistance to Individuals and First Nations Impacted by Mercury Contamination
- Partnering with Indigenous Communities on Infrastructure
- Partnering with Indigenous Communities to Invest in Economic Development
- Settling Indigenous Land Claims
- Revenue-Sharing Agreements with First Nation Communities
- Modernizing the Ontario Gas Card Program
Section B: Working with Federal, Provincial, Territorial and Municipal Partners
- Federal–Provincial Collaboration
- Ontario: A Forward-Looking Leader and Collaborative Partner
- Strengthening Health Care
- Forming a National Pharmacare Plan
- Implementing Legalization of Cannabis
- Investing in Infrastructure
- Clean Water and Wastewater Fund
- Providing Access to Affordable Housing
- Improving Labour Market Transfers
- Enhancing the Working Income Tax Benefit
- Tackling Climate Change
- Working in Partnership with Municipalities
Chapter V: Taxation
Section A: Tax Measures
- Introduction
- Improving Fairness and Transparency of Ontario’s Personal Income Tax
- Improving Economic Competitiveness
- Targeting the Employer Health Tax Exemption to Small Employers
- Paralleling Federal Measures
- Measures Related to Cannabis
- Easing Land Transfer Tax Reporting Requirements for Certain Dispositions
- Other Measures
- Summary of Measures
Section B: Property Tax
- Modernizing Railway Right-of-Way Property Taxation
- Non-Profit Child Care Services in Schools
- Assisting Toronto in Supporting Cultural Spaces
- Victoria University
- Airports
- Creating Consistency in Business Vacancy Rebate and Reduction Programs
- Ongoing Integrity of Education Property Tax Revenue
- Supporting Fair and Accurate Property Assessments
Section C: Revenue Integrity
Section D: Amendments
List of Tables
Chapter I: A Plan for Care
Chapter II: Growing the Economy and Creating Good Jobs
- Table 2.1 Recent Strategic Investments through the Jobs and Prosperity Fund
- Table 2.2 Recent Regional Development Investments
- Table 2.3 Carbon Pricing Scenarios — Impacts by 2020
- Table 2.4 Examples of Greater Toronto and Hamilton Area (GTHA) Rapid Transit Projects
- Table 2.5 Examples of Highway Projects Planned and Underway
Chapter III: Ontario’s Economic and Fiscal Strength
- Table 3.1 Ontario’s Fiscal Recovery Plan
- Table 3.2 Ontario Economic Outlook
- Table 3.3 Outlook for External Factors
- Table 3.4 Impacts of Sustained Changes in Key External Factors on Ontario’s Real GDP Growth
- Table 3.5 The Ontario Economy, 2016–21
- Table 3.6 Private-Sector Forecasts for Ontario Real GDP Growth
- Table 3.7 Changes in Ministry of Finance Key Economic Forecast Assumptions: 2017 Budget Compared with 2018 Budget
- Table 3.8 Ontario’s Medium-Term Fiscal Plan
- Table 3.9 2017–18 In-Year Fiscal Performance
- Table 3.10 Summary of Revenue Changes since the 2017 Budget
- Table 3.11 Summary of Expense Changes since the 2017 Budget
- Table 3.12 Summary of Medium-Term Revenue Outlook
- Table 3.13 Personal Income Tax Revenue Outlook
- Table 3.14 Sales Tax Revenue Outlook
- Table 3.15 Corporations Tax Revenue Outlook
- Table 3.16 Selected Economic and Revenue Risks and Sensitivities
- Table 3.17 Summary of Medium-Term Expense Outlook
- Table 3.18 Selected Expense Sensitivities
- Table 3.19 Average Annual Negotiated Wage Increase in Ontario
- Table 3.20 Change in Medium-Term Fiscal Plan since the 2017 Budget
- Table 3.21 Summary of Medium-Term Revenue Changes since the 2017 Budget
- Table 3.22 Summary of Medium-Term Cannabis-Related Revenue
- Table 3.23 Summary of Investments
- Table 3.24 Revenue
- Table 3.25 Total Expense
- Table 3.26 2018–19 Infrastructure Expenditures
- Table 3.27 Ten-Year Review of Selected Financial and Economic Statistics
- Table 3.28 Summary of Borrowing Program and Medium-Term Outlook
- Table 3.29 Consolidated Derivative Portfolio Notional Value
- Table 3.30 Net Debt and Accumulated Deficit
- Table 3.31 Medium-Term Outlook: Net Debt and Accumulated Deficit
Chapter V: Taxation
- Table 5.1 Current and Proposed 2018 Ontario PIT Rates and Brackets
- Table 5.2 Example Showing Impact of Proposed Changes, 2018
- Table 5.3 Tax Relief from the Basic Personal Amount, 2018
- Table 5.4 Tax Relief from a $2,000 Charitable Donation, 2018
- Table 5.5 Tax Measures
- Table 5.6 Proposed Measures to Modernize Railway Right-of-Way Taxation
List of Charts
Chapter I: A Plan for Care
- Chart 1.1 Caring for the People of Ontario
- Chart 1.2 Examples of Hospital Construction and Renewals in 2018–19
- Chart 1.3 Reducing Costs with Full-Day Kindergarten
- Chart 1.4 Community Justice Centres
- Chart 1.5 It’s Never Okay
Chapter II: Growing the Economy and Creating Good Jobs
- Chart 2.1 The Good Jobs and Growth Plan
- Chart 2.2 Impact of OSAP Transformation on Access for Underrepresented Groups, 2016–17 to 2017–18
- Chart 2.3 Examples of School Projects Recently Approved
- Chart 2.4 Bridge Training Projects: Changing the System
- Chart 2.5 A Renewed Jobs and Prosperity Fund
- Chart 2.6 Reducing Electricity Costs for Businesses
- Chart 2.7 Select Recent Premier International Trade Missions
- Chart 2.8 Residential Electricity Bills — Selected Jurisdictions in Canada and the United States
- Chart 2.9 Planned Use of Carbon Allowance Proceeds
- Chart 2.10 Significant Infrastructure Investments
- Chart 2.11 Ontario’s FinTech Competitiveness
Chapter III: Ontario’s Economic and Fiscal Strength
- Chart 3.1 Ontario’s Balanced Budget
- Chart 3.2 Ratio of Program Expense to GDP, 2007–08 to 2017–18
- Chart 3.3 Comparison of Program Spending Per Capita across Provinces, 2017–18
- Chart 3.4 Slower Ontario Real GDP Growth Expected due to Global Factors
- Chart 3.5 Ontario’s Fiscal Recovery Plan
- Chart 3.6 Ontario’s Economic Growth has Outpaced G7
- Chart 3.7 Quality Job Gains and Unemployment Rate Decline
- Chart 3.8 Ontario Economic Growth Expected to Shift
- Chart 3.9 Over One Million Jobs Created By 2021
- Chart 3.10 The Evolution of the Greater Toronto Area (GTA) Resale Market
- Chart 3.11 Composition of Revenue, 2018–19
- Chart 3.12 Composition of Total Expense, 2018–19
- Chart 3.13 A Further Breakdown of Sector Expenses
- Chart 3.14 Further Breakdown of 2017–18 Interim Expense Outlook
- Chart 3.15 Composition of Borrowing, 2017–18
- Chart 3.16 Canadian Dollar and Foreign Currency Borrowing
- Chart 3.17 Ontario’s Green Bond Issues
- Chart 3.18 Weighted-Average Term of Borrowing in Years
- Chart 3.19 Interest on Debt: Budget Forecast versus Actual
- Chart 3.20 Interest on Debt-to-Revenue Ratio
- Chart 3.21 Average Unrestricted Liquid Reserve Levels
- Chart 3.22 Net Debt-to-GDP and Accumulated Deficit-to-GDP
- Chart 3.23 Total Debt Composition as of March 31, 2018
- Chart 3.24 Effective Interest Rate (Weighted Average) on Total Debt
- Chart 3.25 Net Interest Rate Resetting and Foreign Exchange Exposure