The Investment Dealers Association of Canada says it commends the province for setting out a four year plan to eliminate the deficit and return to a balanced budget.

“While it will take longer than hoped, getting its fiscal house in order is certainly a priority to gain fiscal maneuverability to restore tax competitiveness in the province,” said Ian Russell, senior vice president of the IDA, in a news release.

The Liberal government yesterday announced the introduction of a new Ontario Health Premium, higher user fees and taxes on tobacco and alcohol to meet increased spending in health and education.

The IDA says it is pleased the government projects modest increases in program spending to avoid the need for further personal and corporate tax rate increases.

The association say it is disappointed the province will delay the reduction in capital taxes for five years. It notes that the move will not yield significant revenue gains and sends the wrong signal to the capital markets.

The IDA says it supports supportive of the province’s intention to move forward with legislation that ensures investors in publicly traded trusts are not liable for the activities of the trust, thus clearing the way for fresh investor interest in this sector.