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Ontario Liberals re-introduce budget

More than two months after Finance Minister Charles Sousa stood up and tabled the budget in the Ontario legislature, he did the same thing again on Monday.

The Liberals first introduced their $130.4-billion spending plan on May 1, but they would soon learn that the New Democrats weren't going to support it.

And because the Progressive Conservatives weren't going to help it get passed either, the Liberals decided to call an election before seeing the budget formally rejected in the Legislature.

Fast forward to June 12, the night the Liberals won a majority government, meaning that they would be able to pass the budget that they wanted in the first place.

So despite criticism from opposition parties, the Liberals said they would be moving ahead with the spending blueprint they brought forward in May.

As previously revealed, the Liberals have vowed to spend $130 billion on infrastructure in a decade. That includes $29 billion for public transit and transportation projects.

They've also promised to provide $2.5 billion in corporate grants to keep businesses in the province and lure others here.

The province will be hiking income tax for those making more than $150,000 a year, and boosting levies on aviation fuel and tobacco. The Liberals also intend to create a pension plan that will involve contributions from workers and their employers.

Overall, the Liberals are forecasting an increase in spending by some $3.4 billion, or $900 million more than had been projected in last year's budget. Total program spending is expected to climb to $119.4 billion.

The opposition contends that the government won't be able to eliminate the province's $12.5-billion deficit on its planned timetable without making cuts or layoffs.

Earlier this month, Moody's changed its outlook on Ontario's debt rating from stable to negative.

Opposition parties are warning that a downgrade on the rating itself may be in the cards, as a result of the budget.