Hydro One and beer sales: Ontario wants out of the red

Ontario's big budget week continues Thursday, when, just two days after the federal government unveiled its fiscal plan for the coming year, the province unveils the details of its budget for fiscal 2015.

While both budgets are far apart in terms of deficits – the federal Conservatives have balanced theirs, while the province is more than $10 billion in the red – both governments are relying on asset sales to pad the bottom line.

The federal government is selling its shares in General Motors to raise about $2.2 billion, while the province hopes selling shares in Hydro One and removing restrictions on beer sales will raise more than $4 billion.

Geoff Jeffery, chair of the Greater Sudbury Chamber of Commerce, said he hopes the province picks up the cue from the feds and gets serious about balancing the books.

"It's good to see a balanced budget,” Jeffrey said. “Fiscal restraint, from our perspective, is a good thing. It sends a good message to the province and to Canadians that we should try to balance the books."

While he would have liked to see funding for Maley Drive mentioned specifically in the federal budget, Jeffery said he's optimistic their one-third share of the $88-million project will come through this year in the Building Canada Fund. And plans to increase national infrastructure spending by $5.8 billion is good for the economy, he said.

"Spending on infrastructure tends to spur growth among business and create jobs."

He also was glad to see funds committed for the Ring of Fire, although substantially less than the $1 billion Premier Kathleen Wynne has committed.

"It's something like $23 million to be spent on the technology relating to chromium separation,” Jeffrey said. “It's an interesting announcement in that it strategically avoids the pressure that they may be facing to match the provincial funding of $1 billion for a transportation corridor into the Ring of Fire.

“But I think it's a good development, absolutely, funding for technology to make refining the ore that we mine in the Ring of Fire is a necessary element to making the project successful."

As far as Thursday's provincial budget, Jeffrey said he's not expecting any big surprises since the province already announced the major planks last week with the Hydro One and beer sales announcements.

"I think they've signalled most of the things that they're going to do," he said. "Those are pretty significant announcements that I expect they're relying on to promote this budget."

What he is looking for, however, are signs the governing Liberals are serious about getting the provincial deficit under control. While they have committed to balancing the books by 2017, that still means adding major dollars to a growing debt.

And servicing the cost of the debt is already the fourth-largest expenditure in the province.

"So obviously we're hopeful that perhaps the more mundane but important focus will be on how that budget deficit can be reduced."

Ontario Finance Minister Charles Sousa will unveil the provincial budget in the Ontario Legislature at 4 p.m. Northernlife.ca will have coverage and reaction to Sousa's plan.