Check Out Provincial Government Statement on Economy

TO THE IMMEDIATE ATTENTION OF THE CLERK AND COUNCIL
November 23, 2011

Provincial Government delivers 2011 Fall Economic Statement

Today Finance Minister Dwight Duncan delivered the fall economic statement.  Key highlights included:

-       The government is projecting a deficit of $16.0 billion for this fiscal year.

-       The Commission on the Reform of Ontario’s Public Services (the Drummond Report) is expected to recommend that the target for spending growth be reduced to 1%.  Current government spending growth is 1.4%.

-       Real GDP growth is presently 2.0 per cent.  This rate is down from the 2011 Budget projection of 2.6 per cent.

-       Ontario’s October 2011 unemployment rate was 8.1%.  This is down from a recessionary high of 9.4% in May 2009.

-       The Healthy Homes Renovation Tax Credit is the only new spending program announced in the Fall Economic Statement.  This $60 million program will support seniors living at home and will help with the costs of home renovations such as walk-in bathtubs or wheelchair ramps.  The tax credit is worth up to $1,500 per year and is effective as of October 1, 2011.

-       The Minister stated the there is a need, “to examine everything the government does, piece by piece, to find creative, efficient and effective ways to deliver public services.”