From: AMO Communications < Communicate@amo.on.ca>

Sent: Thursday, November 5, 2020 7:31 PM

Subject: AMO Policy Update: 2020 Provincial Budget

CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

AMO Update not displaying correctly? View the online version Add Communicate@amo.on.ca to your safe list

 

November 5, 2020

AMO Policy Update: 2020 Provincial Budget

The Honourable Rod Phillips, Minister of Finance has released the 2020 Provincial Budget. It provides a three-year fiscal outlook for Ontario and this comes after being delayed by the emergence of the COVID-19 pandemic this Spring. The budget touches on several economic scenarios related to the speed of economic growth but does not articulate a path forward toward a balanced budget. This will be provided in the 2021 Spring budget.

Below are the immediate highlights of new items in the 2020 Provincial Budget of a municipal interest. Within the budget document, the word "municipal" is found over 140 times reflecting a great dea l of focus and priority placed toward Ontario’s municipal sector.

These items are wide-ranging and provided at a high level. The expectation is that a more detailed Budget Bill will follow shortly.

Fiscal Outlook

COVID 19 has impacted the global economy and Ontario has felt the impact. Provincial GDP declined by 12.3 per cent in the second quarter of this year. Despite some economic improvement of late, the economy is expected to contract by 6.5 per cent in 2020. The volatility created by the pandemic will result in a ranging economic growth projection for 2021 with it expected to narrow in 2022. Finally, the provincial debt-to-GDP ratio is projected to hit 50 per cent within two years.