Ontario Budget Report 2014
July 14, 2014
Building Opportunity, Securing Our Future
On July 14, 2014, the Honourable Charles Sousa, Minister of Finance, presented the province's 2014 budget after the Liberal Government won a majority in the recent election. As predicted, the budget that was reintroduced is essentially the same as the original budget that was presented on May 1, 2014. With a majority, the Liberals will not need help this time from another party to pass the budget. As you will recall, the government fell and the election was triggered because the NDP would not support this budget the first time it was presented.
As we originally reported, the government set out a 10-year plan to stimulate the economy and create jobs. This plan includes spending initiatives in key areas, targeted tax increases and program expense growth management in order to hold to their commitment to balance the books by 2017-18.
The deficit reported on July 14th for 2013-14 remains at $11.3 billion which decreased from the $11.7 billion deficit that was forecast last year. Looking forward, the deficit numbers for the next two years are also unchanged since the first time the budget was presented. A deficit of $12.5 billion is forecast for 2014-15 and the outlook for 2015-16 is an $8.9 billion deficit. The new government still plans to meet its original balanced budget target date of 2017–18.
Note that in our original report, we reported that the tax rate on aviation fuel would increase by one cent per litre in 2014. This increase will now apply on September 1, 2014. The subsequent increases in future years will still apply as of April 1st of each year.
Highlights
- Deficit of $11.3 billion forecast for 2013-14
- Deficit of $12.5 billion projected for 2014-15
- Tax increase for high income individuals
- Small business deduction phased out for large CCPCs
Download our full budget report