Secondary Lessons
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Title
The Provincial Government Budget
Guiding Question
Why should I care about Ontario’s provincial budget?
SUMMARY
Budgets are important planning documents that are used by individuals, businesses, organizations and governments to ensure responsible financial management, and that help outline priorities and achieve long-term goals.
In the ‘Minds On’ activity students estimate what they believe the breakdown of provincial government expenses and revenues should be for the upcoming year. Afterwards, students review Budget 2018 highlights and examine the government’s breakdown of projected expenses and revenue resources. Students consider the impact of the budget on them and their families, and the aspects they agree and disagree with.
LEARNING GOALS
By the end of this lesson, students will be able to:
- Demonstrate critical thinking skills about spending choices and financial decisions;
- Use the concept of political significance to assess how the budget impacts them and their family;
- Use the concept of political perspective to analyze the views of the different political parties on the current budget, and determine which party aligns with their own views;
- Use the concept of stability and change to evaluate factors that influence political change.
SUCCESS CRITERIA
- I can think critically about provincial budget priorities;
- I can explain how the provincial budget impacts me and my family;
- I can assess how the perspectives of various political parties align with my personal views of the budget;
- I can explain how factors facilitate and/or present challenges to political change..
CURRICULUM LINKS:
CPC3O: A1, A2, B1, A1.1, A1.5, A2.2, B1.2, C3.1
DOWNLOAD CURRICULUM LINKS (PDF)
MINDS ON
1. Ask students if they have ever planned in advance how they spend their money, or if they have ever needed to create a plan to save money for a particular purpose or goal (e.g., university/college, phone, clothes, video games, etc.). Introduce the concept of a budget and distinguish between expenses and income.
- Expenses – the money you spend
- Income – the money you receive/earn
- Budget – a plan to manage your money to balance your income and expenses
2. Explain to students that the Minister of Finance manages the revenue and expenses for the Ontario provincial government. There are seven major spending areas (Children and Social Services, Education, Health, Justice, Postsecondary and Training Sector, Other Programs, Interest on the Debt). Review Handout 15.1.
3. Using Activity 15.2, ask students to imagine that they are the Minister of Finance and ask them how they would spend and collect the approximately $150 billion needed to operate the provincial government and deliver public services for the coming year. Ask students to estimate the expenditures and revenue as a percentage of the total.
4. Give students time to Turn and Talk with a partner and then debrief as a class. Guiding questions:
- Were your income and expenses equal?
- How did you decide which areas of responsibility would receive the most money?
- How did you decide which sources of income would bring in the most money?
ACTION
1. Using Slide Deck 15A, provide an overview of the following key budget terms and their relevance at the provincial level:
• Every year the Ontario government must prepare a budget for the upcoming year (April 1 to March 31.). In order for it to pass (and be implemented), it must be approved by more than half of the Members of the Provincial Parliament (MPPs). Key terms:
– Revenue: ‘money in’, money received, money earned;
– Expenditures: ‘money out’, money spent, costs, payment for goods or services;
– Surplus: excess, when you have more revenues than expenses, a positive fiscal balance;
– Deficit: deficiency, when you have more expenses than revenues, a negative fiscal balance, budget shortfall; and
– Debt: the amount you have borrowed over time and need to repay, an accumulation of months or years of a deficit, an amount of borrowings.
2. Using Slide Deck 15B, review the percentage breakdown of Government of Ontario’s expenditures in Budget 2018.
- The Ontario government expects to spend a projected $158.5 billion during the current fiscal year (April 1, 2018 to March 31, 2019).
Teacher Note: Use Handout 15.3 to review Ontario’s seven budget sectors
3. Ask students to compare their own breakdown of expenses from the ‘Minds On’ activity to the government’s projections. How does the government
budget compare to student estimates? How do student estimates compare to each other?
4. Using Slide Deck 15B, provide the percentage breakdown of the Government of Ontario’s revenue sources in Budget 2018.
5. Ask students to compare their own breakdown of revenue sources from the ‘Minds On’ activity to the government’s projections. How does the government budget compare to student estimates? How do students estimates compare to each other?
CONSOLIDATION
Review the announcements associated with the Budget 2018 (video, backgrounder and highlights – http://budget.ontario.ca/2018). Use the following guiding questions to have a class discussion:
- What is the impact of the budget on you and your family?
- Are you satisfied with the budget and related announcements? Why or why not
- Do you strongly agree or disagree with any political or media responses to the budget? Sample media reports to provide analysis
- “How much will all the ‘freebies’ in Wynne’s budget cost? Brace yourself, Ontario,” Financial Post (April 3, 2018)
- “Can the Ontario Liberals’ spending spree keep them in the election race until June 7?,” Toronto Star (April 2, 2018)
- “Wynne’s ploy to buy Ontarians’ votes is admirably shameless,” CBC News (March 28, 2018)
- “Ontario Liberals table an NDP budget — so why not vote NDP instead?,” National Post (March 28, 2018)
- “Ontario budget: Kathleen Wynne gambles voters won’t mind a deficit,” CBC News (March 28, 2018)
- “Ontario budget highlights: Key facts and figures you need to know,” CBC News (March 28, 2018)
- “How a Liberal budget begets a pre-election campaign platform in Ontario,” Toronto Star (March 26, 2018)
ASSESSMENT IDEAS
A) Have students reflect on their views of Budget 2018, summarize a personal connection and link to their political orientation (Activity 15.3).
- One or two ways you agree with how the government has allocated funds
- One or two ways you disagree with how the government has allocated funds
- One personal connection you have to the budget
- Two explanations for how your views about the budget connect with your political leanings (position on the political spectrum)
B) With a provincial election coming this spring, the government’s budget – and how each of the opposition parties respond – can be viewed as a preview of the respective party platforms to come during the campaign. Using media reports and political party communications, ask students to write an analysis of the 2018 provincial budget from different perspectives. Where applicable, incorporate information about the political spectrum to explain the responses or positions of the major political parties.