May 2004

2004 Provincial Budget

Ontario Finance Minister Greg Sorbara tabled the first budget by a Liberal finance minister in 14 years at 4:00PM Tuesday May 18, 2004. The Budget promises to address what is described as a structural deficit and to achieve a balanced budget by 2007-08. In the meantime, the interim deficit of $6.2 billion in 2003-04 will be reduced to $2.2 billion in 2004-05, $2.1 billion in 2005-06 and $1.5 billion in 2006-07. As widely reported in the last few days leading up to the Budget, the cost of achieving this deficit reduction will in no small part be borne by individual Ontario taxpayers who will be faced with the payment of a new “Ontario Health Premium”. This tax increase, which tops out at $900 for high income taxpayers, is expected to yield additional revenues of $1.6 billion in 2004-05, $2.4 billion in 2005-06, $2.5 billion in 2006-07 and $2.6 billion in 2007-08.

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