A one-year fiscal outlook unveils record spending for COVID-19 pandemic with $17B in emergency measures
Photo: Ontario finance minister, Rod Phillips
ONTARIO RELEASED A $17-billion package Wednesday to support the province through the COVID-19 outbreak, including an injection of cash for the health sector, direct payments to parents and tax breaks for businesses.
“COVID-19 is an extraordinary threat to the health and economy of Ontario — the greatest we’ve faced in my lifetime — and it demands an extraordinary response from all levels of government and civil society because we’re all in this together,” said Ontario finance minister, Rod Phillips, while tabling an emergency one-year fiscal outlook.
The spending boost includes a $1-billion COVID-19 contingency fund, nearly $1 billion more for hospitals and more personal protective equipment for front-line workers.
Measures also include a one-time payment for parents of $200 per child 12 years old and under, a doubling of payments for low-income seniors and suspending student loan payments for six months.
The plan includes both $7 billion in new spending and $10 billion in tax and other deferrals. The spending will increase the deficit from $9 billion to a projected $20.5 billion for 2020-21 — a level not seen since the aftermath of the 2008 recession.
More than $3 billion in funding is directed toward healthcare. In addition to the COVID-19 fund and the hospital spending boost, the plan includes $243 million for surge capacity in the long-term care sector, $160 million for public health and $75 million for more personal protective equipment and medical supplies.
Parents will be able to get the $200 payments to help offset costs of school and daycare closures at a cost of $337 million to the province. Guaranteed Annual Income System payments for low-income seniors will be doubled for six months. Eligibility will be expanded for the Low-income Energy Assistance Program, with an additional $9 million going to breaks on energy bills.
People with student loans will get a six-month break on making Ontario Student Assistance Program loan repayments and not accrue extra interest. Indigenous communities will see an additional $26 million for healthcare and critical supplies.
The province will temporarily increase the Employer Health Tax exemption for 57,000 employers at a cost of $355 million.
As well, businesses will get five months of interest and penalty relief to file and make payments for provincially administered taxes, at an estimated cost of $6 billion, employers will be allowed to defer Workplace Safety and Insurance Board payments, at a cost of $1.9 billion and about $1.8 billion will be used to defer municipal remittance of education property tax to school boards, allowing municipalities to provide property tax deferrals to residents and businesses.
The Ontario government had originally been planning to introduce a full budget Wednesday, but instead tabled a one-year fiscal outlook in light of the global pandemic’s uncertain future impacts on the economy. A full budget will be tabled by November 15.