2018 Ontario provincial budget commentary
Finance Minister Charles Sousa tabled the 2018 Ontario provincial budget on March 28, 2018. The government is forecasting a surplus of $0.6 billion in 2017-2018. Real GDP rose 2.7% annually on average over the 2014-2017 period, but is expected to average 1.9% per year between 2018 and 2021. Over the next three years, the government is projecting deficits of $6.7 billion in 2018–2019, $6.6 billion in 2019–2020, and $6.5 billion in 2020–2021. A return to balanced budgets is forecast for the 2024-2025 fiscal year.
On the tax side, changes are proposed to the personal income tax (PIT) system. Specifically, the government proposes to eliminate the Ontario surtax and adjust personal tax brackets and rates to compensate for the change. A change to the Ontario charitable donations tax credit is also proposed. There were no changes to corporate income tax rates, but certain tax credits were enhanced or adjusted.
Please note that these changes are still proposals until passed into law by the provincial government. Let our experienced advisors assist you with understanding these potential changes and the impact they may have on you and your family’s financial strategy.
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