Ontario's Liberal government tabled a budget on Thursday that places heavy emphasis on public transportation.

Minister of Finance Dwight Duncan's first budget includes $1.2 billion for projects such as helping to fund an extension of Toronto's subway system, and money for bus lines and transit measures to further integrate systems in the Greater Toronto Area.

The new budget includes funds to help build an extension of the Toronto subway.
The new budget includes funds to help build an extension of the Toronto subway.

There will also be money for health care, a modest boost for education, a two-per-cent increase in welfare payments and a cut in the capital investment tax rate of five per cent next January, two years ahead of schedule.

However, there was no help for farmers, who had demonstrated in front of the legislature during the four days leading up to the budget.

And while the opposition wanted a firm commitment to balance the budget, Duncan said that would have to wait for fiscal 2008 – just in time for the election set for November 2007.

The plan to extend the subway line provides for one-third of the needed funding. Ontario wants the federal and local governments to provide the rest.

Conservative Leader John Tory criticized the budget as "100-per-cent political" and decried what he called the missed opportunity to eliminate the deficit.

Howard Hampton, who leads the New Democrats, was also critical, saying the Liberals had missed the chance to help farmers and could have spent money to shrink college class sizes, an important issue in the continuing strike by college teachers.