Ontario Progressive Conservative leader Tim Hudak said Ontario government's budget failed to help the province's struggling economy. (Pawel Dwulit/Associated Press)The provincial Conservatives slammed the Ontario government's budget Thursday, saying it didn't deliver a plan for restoring the provincial economy.

Progressive Conservative Leader Tim Hudak said it "failed to put jobs first."

"While other economies are recovering from the recession, Ontario is being left behind," said Hudak in a statement. "While Ontario has lost 210,000 jobs, [Premier] Dalton McGuinty is handing over $25 million in severance to his HST [harmonized sales tax] … collectors."

(Hudak's HST jab was a reference to the 1,250 civil servants who will transfer from the provincial to the federal tax collection departments once the Ontario sales tax is harmonized with the GST. They'll receive as much as $45,000 each in severance pay, despite not losing a single day of work.)

Hudak dismissed as "too little, too late" the budget's new three-year program of electricity rebates of $150 million a year for big factories, smelters, refineries and other industrial operations in the north of the province.

He said the move simply offsets increases in electricity rates that have resulted from the McGuinty government's focus on green energy.

Students applauded the government of Premier Dalton McGuinty for the support for higher education it announced in its budget Thursday. (Canadian Press)

NDP Leader Andrea Horwath also said the measures would not be enough to help the economically depressed region.

"Dalton McGuinty has finally found northern Ontario on the map," she said.

"For six years, he's ignored the fate of northerners losing jobs, but the thought of losing his own job finally got his attention."

Credit downgrade a concern

Outside Queen's Park, reaction was mixed.

Extending the period for balancing the budget by two years will carry risks, TD Economics said in a commentary.

With the net debt-to-GDP ratio now expected to reach 40 per cent by 2013, there could be concerns about a credit downgrade for the province if the economy weakens, it said.

It said those risks should be countered by measures the province has taken to encourage business investment, including harmonizing the provincial sales tax with the GST and reducing corporate income and capital taxes.

The Ontario Chamber of Commerce applauded the budget for avoiding tax increases but bemoaned the lack of "sufficient detail" about how the government will tackle its growing debt.

"[It leaves] our members wondering what lies ahead which could discourage business investment and job creation when it is most needed," the business association said in a statement.

Ontario Nurses' Association president Linda Haslam-Stroud said the budget's meagre increase of 1.5 per cent in hospital funding will result in more cuts to service and nursing staff.

"Every Ontarian should brace themselves for yet more cuts to the health care they need and count on," said Haslam-Stroud.

Karen Philp of the Canadian Patient Summit, which represents dozens of non-profit organizations, health professionals and patients, agreed that the lack of significant investment would be felt in patient care.

"[The government] still fails to recognize patients as the critical factor in health care efficiency," she said.

The confirmation of funding for the establishment of full-day kindergarten programs across the province by 2015-16 was welcomed by the Elementary Teachers' Federation of Ontario.

"[The move] will establish Ontario as an educational leader within North America," said federation president Sam Hammond.

Budget a 'victory' for students

Student organizations were grateful for the government's pledge to provide resources for a credit transfer system.

College Student Alliance president Justin Fox called the move "a victory" for post-secondary students.

The organization applauded the new funding for enrolment in the budget, which includes $310 million for an additional 20,000 students in colleges and universities and $600 million over two years for 30,000 second-career students.

"Ontario students are definitely pleased to see that this government continues to hold education in such high regard," Fox said. "Students believe strongly that their current studies and training will help Ontario's competitiveness progress on a global scale."

But not all student concerns were addressed. The Alliance noted the budget made no mention of additional financial aid for students to help with the rising costs of study and living.

With files from The Canadian Press