Alternative fiscal paths for the 2019 budget
The Progressive Conservatives are using financial fearmongering as a cover for cutting funding for public services. This paper outlines two alternative fiscal paths that maintain and enhance services while reducing Ontario’s deficit and debt-to-GDP ratio. Both alternative budget proposals increase annual spending by the 3.5% necessary to maintain service levels, and top this up by $2.4 billion in 2019-20, rising to $3.8 billion by 2022-23, for service enhancements approved in the 2018 Ontario budget. These budgetary increases, which would significantly benefit Ontarians, could be paid for through reversing the Progressive Conservatives tax cuts, increased corporate tax rates, and either an increase in the personal income tax rate or the HST rate. Detailed model calculations are presented.
About the authors
Ricardo Tranjan directs the research program for the CCPA-Ontario, focusing on collaboration and movement building. Ricardo’s expertise centres on Ontario public finances and the political economy of social policy, especially public education funding, income support programs, and rental housing. He is a frequent commentator in the media and public speaker. In addition to regular op-eds in major news outlets and several policy analyses, Ricardo is the author of two books: Participatory Democracy in Brazil (2015), a scholarly analysis of his native country; and the national bestseller The Tenant Class (2023). Previously, Ricardo managed the City of Toronto’s Poverty Reduction Strategy Office and briefly taught at universities in Ontario and Quebec. He holds a Ph.D. from the University of Waterloo’s Balsillie School of International Affairs and speaks English, French, Spanish, and Portuguese.
