Furthermore, Ontario should also move to an autonomous tax on income system where all brackets and credits can be fully indexed for inflation. That the Ontario government cut provincial gas taxes to a level commensurate with roadway and public transportation spending. Continued reliance on non-traditional revenue sources, specifically liquor and gambling revenues, provides a false sense of security and has the potential effect of numbing legislative resolve to consistently curtail program expenditures. A formula should be established for appropriate distribution of these non-traditional revenues with a majority being allocated to debt reduction. Fiscal Environment Overview Ontario is poised to balance its budget for only the fourth time in the last 100 years.
Key indicators point to a robust economy.
Indeed, the underlying economic fundamentals for Ontario s economy are very strong. Sound fiscal management through focussed program spending and lower personal and business tax rates has returned Ontario to a position of international prominence. The province is once again setting the pace for national economic growth. In basic terms, the Ontario economy is firing on all cylinders. Ontario is projected to have the fastest growth rate of all the G-7 economies over the next two years.