Budget of 1991 in Ontario
The first budget of the first even NDP Ontario government.
This Budget provides direct employment to thousands of people through the $700 million Anti-Recession Program announced last December. It also provides direct support to people who have lost their jobs… The Government will commit $175 million in 1991-92 to pay claims retroactive to October 1, 1990. The Minister has also announced a $32.5 million labour adjustment initiative to help workers re-enter the job market and improve their skills… We have increased Provincial capital spending to $4.3 billion to support employment and to provide necessary investment in schools, roads and other public facilities that will be enduring assets in Ontario communities.
This year, the Government is providing an additional $28 million to municipalities to help them establish enhanced programs to meet the Provincial targets for waste diversion of at least 25 per cent by 1992 and 50 per cent by the year 2000. We are more than doubling Provincial support for municipal 3Rs programs over last year
Ontario’s Technology Fund will provide $131 million for research, development and technology diffusion in 1991-92. That includes $81 million for programs to support leading-edge research in such areas as robotics, telecommunications and biotechnology, and $50 million for the R&D Super Allowance to provide tax incentives for private sector research and development…
The annual funding for the Innovation Ontario Corporation will be increased significantly to almost $21 million. The ceiling for individual investments by Innovation Ontario will be raised to $1 million from $350,000, enabling the Corporation to invest inthe continuing growth of high-technology firms.
- 10.9% and 7.1% increase for the Ministry of Education and the Minister of Colleges and Universities, respectively. Making post-secondary cheaper, as well as making schools more affordable for municipalities.
- “Expenditure growth in the Ministry of Community and Social Services isanticipated to be $1,804 million, an increase of 28.5 per cent over the
interim 1990-91 level.”
- $40 million plus $50 million to two agriculture funds and loans, to provide direct relief to farmers.
- “We will commit $215 million on a full-year basis to reform of the social assistance system.”
- $50 million dollar tax cut that gives 700,000 low-income Ontarians an elimination of income tax, or a reduction.
- $1.3 billion investment in cooperative and affordable housing – leading to 35,000 new units and houses. Ministry of Housing to get more than $764 million to manage all the new houses. “
Expenditures by the Ministry of Housing will increase by 39.2 per cent to
$764 million in 1991-92.”
- $12 million more for woman’s shelters.
- $100 million will go to municipalities and counties so they can pay for the social services they provide.
- Around $1 billion dollars will be towards pay equity adjustments for female public sector workers.
- Over $48 million to improving Aboriginal land and claims. $20 million for infrastructure in Aboriginal communities. $5 million to go to child-care spaces.
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“The allocation for the Ministry of Health will rise by $1,607 million or 10.6
per cent.”
…an increase in the personal income surtax rate. This is intended to make the tax system more progressive by ensuring that those at the upper end of the income scale pay a greater share. Effective July 1, 1991, the surtax rate will increase from 10 per cent to 14 per cent of Ontario income tax in excess of $10,000. The surtax only affects taxpayers with incomes of $84,000 or higher. This action will add $60 million to revenues in 1991-92
- Various taxes on gas, cigarettes increased.
As everyone who is even vaguely (un)informed on this Bob Rae NDP government, this caused high Ontario deficits. Well, indeed. To pay for all this stuff they were investing in, without raising taxes significantly, they had to run a deficit. This is fairly standard procedure. Also, the deficit was not completely their fault. Consider:
The task ahead would be much simpler if the federal government had not begun a deliberate campaign in the 1980s to dismantle its commitments to social programs. These cumulative federal reductions in Established Programs Financing and payments under the Canada Assistance Plan will cost Ontario some $3.6 billion in 1991-92 alone-enough to wipe out almost two-thirds of our operating deficit. What’s more, the federal government has announced its intention to continue to restrict its contribution to essential social programs for a further three years-with serious consequences for the well-being of our nation