$20 Million Transition Fund for Northern and Rural Hospitals -- New from McGuinty
Ontario’s minority Liberal government is set to survive a budget vote after Premier Dalton McGuinty said he will introduce a 2 percent tax on people with incomes greater than C$500,000 ($503,700), meeting a key demand from the New Democrat Party. The surtax would generate C$470 million next year, McGuinty said, all of which would go to reduce the province’s deficit, which is slated to drop to C$15.2 billion in the year that began April 1 from C$15.3 billion last year. McGuinty said his government will also raise Ontario Works payments, which helps people in temporary financial need, by 1 percent. It will pay for this out of savings generated by reducing generic drug costs. The government will also create a C$20 million transition fund for northern and rural hospitals to help them achieve efficiencies.