Ontario 2020 Budget –$187 Billion in Expenditures
The Ontario 2020 Budget projects a record $187+ billion in expenditures this year, with $30 billion being directly related to pandemic spending. This blog will focus on funding from the Ontario 2020 Budget related to Canadian businesses, rather than funding related to Canadian individuals.
Ontario’s 2020 budget includes new COVID-19 business funding programs, tax breaks, and industry-specific funding.
2020 has exposed many issues that the Ontario provincial government plans to tackle. These issues include Ontarians without reliable internet, funding for long-term care homes, and helping to support minority-owned businesses.
2020 Budget Highlights:
- Deadlines have been extended for various government funding programs
- COVID-19 business support programs have received additional funding top-ups
- Property taxes for Ontario businesses will be reduced
- Employer Health Tax Exemption has been permanently increased to $1 million moving forward
- Commercial and industrial hydro bills will be subsidized January 1, 2021
- Beer and wine taxes have been frozen until March 2022
- The Ontario government is investing heavily in long-term care homes
- Direct funding has been allocated to museums, fairs, and art institutions
Ontario 2020 Budget Breakdown:
As you may expect, the focus of the 2020 budget is towards fighting COVID-19 by purchasing PPE, helping businesses adapt to the digital landscape, and finding proactive ways to protect, support, and recover from the novel coronavirus.
Protect – $15.2 Billion
As the Ontario provincial government works to contain the COVID-19 pandemic, the Ontario 2020 budget reflects this by putting coronavirus-related spending first. This spending includes increasing protection at long-term care homes, increased testing, contact tracing, education, and PPE for hospitals and businesses.
Support – $13.5 Billion
In order to help Ontario businesses and individuals adapt to our new lifestyles, the Ontario government has allocated funding towards expanding broadband internet, creating new jobs, renewing schools, providing one-time payments to parents to purchase online school supplies, and increased protection in long-term care homes.
Recover – $4.8 Billion
The recovery portion of this funding will be used to help fuel Ontario’s long-term economic growth by getting workers back on their feet. This includes lowered electricity prices, reduced taxes, funds for training employees, and creating new jobs.
Find Ontario COVID-19 Business Support Programs
Ontario businesses need support and the government is listening. Find updates on federal and provincial funding programs on our COVID-19 business support page.
Ontario businesses can receive an interest-free loan from the Canadian government for up to $1,000,000 towards their fixed operating costs through programs like the Regional Relief and Recovery Fund (RRRF). This program is open to businesses that may not have been eligible for other COVID-19-related funding programs, such as the Canada Emergency Wage Subsidy (CEWS), or the Work-Sharing program.
Due to the overwhelming demand for COVID-19 business support funding, we strongly encourage you to start your application process sooner rather than later. Contact Mentor Works to find out how your business can take advantage of these programs.