Toronto at risk of slashing its budget by $ 860 million

The City of Toronto risks axing $ 860 million in its 2021 budget due to the coronavirus pandemic, seeking more funding from the provincial and federal governments.

“If there is no financial support, we will have no choice but to cut the budget for 2021 by up to $ 860 million,” Mayor John Tory said on Tuesday.

“I don’t think this is the right time to cut services to people, especially the vulnerable,” added Tory, who will present the city’s budget on Thursday.

Without the support of Ottawa and the Ford government, Toronto will be forced to cut spending rather than raise taxes to avoid the deficit.

The reduction in income, particularly in public transport, and the increase in expenditure to cope with the economic repercussions of the health crisis have practically strained the city’s budget.

To offset the impacts of COVID-19, John Tory has announced an additional injection of $ 796.4 million, according to “The Star”. But that’s still not enough, complained Mayor Tory.

The COVID-19 pandemic has left several economic sectors in the GTA sidelined, melting the Queen’s City’s revenues. Other major Canadian cities have not escaped this as well.

Despite the COVID-19 crisis, the City of Montreal has maintained virtually the same spending as in 2020, tabling a budget of more than $ 6 billion, a slight decrease of $ 1.5 million compared to the record budget from 2020.

Leave a Reply

Your email address will not be published. Required fields are marked *