Ontario Deputy Premier and Finance Minister Jim Flaherty today announced that the Ontario Government is on track to balance this year’s budget, despite recent economic pressures, but that tough choices will need to be made in the future.

“This government will not surrender the hard-won gains that have restored Ontario to prosperity,” said Flaherty. “Today, I want to assure the people of Ontario that, because of the Premier’s leadership and their hard work, Ontario is better prepared than ever to weather a period of economic uncertainty.” Flaherty said the province will use $300 million of the $1 billion reserve to balance the budget this year.

Flaherty noted that at the same time that revenue projections are down, there continues to be pressure for more spending on priorities like health care. He announced that the province will begin consultations leading up to the 2002 Ontario Budget on how it can make up the federal shortfall.

He also proposed to assist low- and middle-income families by providing a one-time, tax-free payment of $100 per child under age seven.

He proposed to accelerate the reductions in personal income, corporate income and capital taxes to October 1; to accelerate the application of the small business tax rate to more businesses; extending the deadline for registering new Community Small Business Investment Funds to December 31, 2002; restore support for research and development by suspending the R&D Super Allowance and allowing corporations to exclude from Ontario taxable income, the portion of the federal investment tax credit that relates to Ontario R&D expenditures.