Ford government to unveil 2024 financial plan, promising a ‘very balanced budget, per se’

The Ford government is set to table its annual budget Tuesday afternoon, with the premier promising a “very balanced budget, per se,” one that’s focused on infrastructure and housing but is not expected to get Ontario out of the red.

The government’s annual financial blueprint will be tabled inside the Ontario legislature by Finance Minister Peter Bethlenfalvy around 4 p.m. Pre-budget announcements have confirmed money for housing-related infrastructure, roads and an extended gas tax cut.

Government sources told Global News the budget will continue on the theme of infrastructure spending, housing-related spending measures and affordability.

In one of several pre-budget announcements, Ontario Premier Doug Ford announced $1.6 billion in net new funding to support new homebuilding in the province. The province said the money was to help connect new housing projects to municipal infrastructure like water pipes and roads.

The 2024 budget will also offer the first indicator of whether the Ford government is expected to meet its housing targets for the upcoming year.

While the government has set a target of 125,000 housing starts for 2024, the budget could pour cold water on those targets.

Using private-sector forecasts, the government projected 80,000 housing starts in 2023 and beat that target by roughly 9,000 new builds. That same document projected 79,300 housing starts for 2024, far fewer than the government’s target of 110,000 housing starts this year.

The construction sector has faced a number of challenges from high interest rates, lower demand, and supply chain and labour shortage issues, which slowed down the number of new homes being built.

In a social media post ahead of the budget announcement, Bethlenfalvy said his plan would not involve “raising taxes and fees or putting more burden on businesses and municipalities.”

Asked if he expected the province to present a surplus in its budget at an unrelated event in mid-March, Ford was upbeat but not specific.

“It’s going to be a very balanced budget, per se,” he said. “We’re going to focus always on supporting the 444 communities through infrastructure.”

Bethlenfalvy’s most recent financial update for the third quarter of the fiscal year suggested Ontario would be heading fairly significantly into the red.

His projections indicated the province would end the year with a $4.5-billion deficit, significantly higher than the $1.3-billion deficit for 2023-24 that he was eyeing at the time of last year’s budget.

Sources told Global News the government has been looking at the economic uncertainty referenced in budgets delivered by other provinces and could outline the economic uncertainty in this document.

On the eve of the budget, Bethlenfalvy also confirmed a long-teased plan to continue a 5.3 cent cut to the gas tax until December 2024.

“Our government understands that high inflation and interest rates are hurting Ontario workers and their hard-earned paycheques,” Bethlenfalvy said.

Requests to Queen’s Park flooded in ahead of Tuesday’s budget unveiling.

Municipalities are asking for more money to help handle costs downloaded from Queen’s Park, ranging from public health to seniors’ care. The university sector continues to beg for a fresh cash injection as it comes to grips with a 50 per cent reduction in international students.

Ontario NDP Leader Marit Stiles said she wanted to see a “budget that puts people first” when it is unveiled on Tuesday afternoon.

“That means prioritizing public health care, an investment in that — a meaningful investment in public health care, in public education, in real, bold housing solutions that are going to deliver truly affordable, supportive, attainable housing,” Stiles said Monday.

“We’re going to be looking for a budget that actually meets the moment that people in this province are in and that puts people first.”

The Ontario Liberals are calling for the province to refund the provincial portion of HST related to home heating, double funding for the Ontario Student Nutrition Program and create a fully funded, multi-year health-care staffing plan.

The Green Party has called for money to battle climate change and to improve protections for renters.

— with files from The Canadian Press

&© 2024 Global News, a division of Corus Entertainment Inc.