On March 25, 2020, Ontario Finance Minister Rod Phillips released Ontario’s Action Plan: Responding to COVID-19 (OAP) in the Legislature. The action plan is a fiscal and economic update, which constitutes another legislative step in the Ontario government’s response to the pandemic.
Due to the COVID-19 pandemic, governments around the world have had to respond in unprecedented ways using whatever public policy instruments they have to combat the economic uncertainty this crisis is creating. Ontario had to shelve their budget, which was expected today, in favour of a more focused economic update and one-year plan that accounts for today’s current economic reality with targeted measures to address health care capacity, struggling people and the businesses where they work.
The OAP is a $17-billion action plan in response to the COVID-19 pandemic. Funding announced can be divided into the following three categories:
1. Direct support for health care;
2. Direct support for people and jobs;
3. Deferrals to help people and businesses increase cash flow.
The foremost objective of today’s fiscal update is to provide stability to Ontario’s health care system and support for Ontario’s most vulnerable groups.
In Ontario’s 2020 Action Plan, the deficit is pegged at $20.5 billion for 2020-21. The government’s intention with this plan is to ensure that immediate challenges are met while still giving Ontario the ability to respond to future capacity challenges associated with COVID-19. Once the government begins to gain clarity on our ability to “flatten the curve,” they will begin planning what will be required to support Ontarians in the “recovery phase.”
The Ontario government has been closely coordinating with the federal government with regard to their public policy responses to COVID-19. These measures are meant to complement each other’s plans.
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