With Budget 2019, Ontario is committed to balancing the books in a responsible manner – restoring accountability, sustainability and trust. The previous government left behind a $15 billion structural deficit.
The government’s plan will prioritize investments that generate the greatest returns for people in Ontario and protect what matters most. Programs will be continually reviewed to ensure they are efficient, effective and modern, while relying on best practices from around the world.
Over the course of this five-year path to balance, total revenue is projected to grow at an average annual rate of three per cent. Comparatively, program expense over the same period is budgeted to grow at an average annual rate of one per cent.
In order to achieve a balanced budget while protecting what matters most, it is important to transform programs, not only to find efficiencies and savings, but also to make services more modern and accessible.
Several programs have been streamlined to centralize administrative functions.
Ontario is combining six existing provincial health agencies and the Local Health Integration Networks into one new agency – Ontario Health. The goal is to streamline oversight, reduce bureaucracy and reduce the silos – leading to annualized savings of more than $350 million.
An integrated supply chain is being created to consolidate procurement practices across sectors, resulting in reduced government expenditures and reduced red tape for vendors. This initiative is expected to result in annualized savings of $1 billion.
Ontario’s social assistance system will be reformed, simplifying the rate structure, reducing administration, cutting unnecessary rules, and providing greater opportunities to achieve better employment outcomes, resulting in estimated annual savings of over $1 billion at maturity.
Drug benefits under OHIP+ will be focused on those who need them the most – children and young people under the age of 25 who are not covered by private insurance plans – generating annualized savings of $250 million.
The government is restoring the Ontario Student Assistance Program to a needs-based program. OSAP will be reformed so future generations of Ontario students can access financial support for postsecondary education while providing a 10 per cent reduction in tuition for domestic students.
There are important strides toward building a modern and more efficient workforce while ensuring front-line services and workers are protected. As an example, the size of the Ontario Public Service has already been reduced by 3.5 per cent through attrition alone. Additional measures, such as voluntary exit initiatives, will bring further reductions and efficiencies.
All ministries have identified four per cent in administrative efficiencies resulting in cumulative savings of $1.7 billion by 2023-24.
By containing costs and prioritizing spending, the Ontario government is providing a projected $26 billion in much needed relief to Ontario individuals, families and businesses over six years, while continuing to eliminate the deficit. For example, the government is proposing a new refundable tax credit for child care costs.
Restraining spending and finding savings has to be responsible and pragmatic.
While balancing the budget requires difficult decisions and trade-offs, it is also an opportunity to rethink how government works and how the entire broader public sector delivers programs and services. This is why the government will continue to review programs on an ongoing basis.
We all need to feel confident that our government is a careful steward of our tax dollars.
Toby Barrett is MPP for Haldimand-Norfolk