The 2008 Ontario Budget: Hits the Right Notes, Based on Cautious Outlook

Ontario’s Liberal government has put forth a very careful budget for 2008. A cautious economic outlook underpins an even more cautious revenue forecast. Despite this, overall spending growth is so limited that the government expects to produce surpluses totalling $1.8 billion over fiscal years 2008–09 and 2009–10. While some economists could argue that a little more stimulus would have been timely, the politics of the day do not allow the government to plan for a deficit. Although small, many of the new measures are aimed at the right places. Education and skills training, innovation, infrastructure, and targeted business tax cuts—all should help the province’s competitiveness and productivity down the road. These priorities are consistent with previous Conference Board analysis and recommendations.