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Also, the budget was described as “Protecting what matters most.” What “matters most” was described by President of the Treasury Board Secretariat Peter Bethlenfalvy as education, health care and social services. At first glance, it looks like the budget does this, with year-over-year increases in the amounts dedicated to these sectors. However, a deeper dive reveals that these are only cuts in disguise.

The rate of inflation, a sustained increase in the general price level of goods and services over a period of time, in Canada is about 1.9 per cent. However, the increase in spending annually in the Ontario budget on health and education is less than the rate of inflation, at approximately 1.6 per cent. This isn’t even accounting for population growth. Despite the surface appearance that the budget is supporting key services such as health and education, it is actually making cuts.

Despite there being a $1-billion increase in the amount of money allocated to education, the amount is actually $6 billion short of what it takes to keep up with inflation and population growth. There will be nearly $700 million in cuts towards post-secondary education alone.

Think of it in terms of a simple input-output system. There is already a $15-billion deficit within the system. To fix the deficit, one must logically increase revenue, and make sure that this increase outpaces the rate of inflation. However, this budget does the opposite. When this continues, the deficit will increase, propagating a vicious circle.