Finance Minister Dwight Duncan is targeting the unemployed and the poor in a provincial budget designed to cushion Ontario against an economic slowdown.

In a record $96.2-billion spending plan tabled yesterday in the Legislature, Duncan unveiled a three-year $1.5 billion Skills to Jobs Action Plan.

"The plan is as sweeping in scope as it is balanced in approach," the treasurer said of the budget, which did not increase taxes while forecasting a $600-million surplus for 2007-08.

Ignoring federal Conservative Finance Minister Jim Flaherty's call Monday for Ontario "to step up in support of our businesses" and slash corporate income taxes, the Liberals instead invested in human capital.

"It is a balanced approach that is prudent and pragmatic," said Duncan in a shot at Flaherty, who has long insisted that tax cuts pay for themselves by stimulating economic activity.

Business tax breaks in the budget amounted to $750 million over four years, far less than Ottawa has been demanding.

While Ontario's total debt has ballooned to $162.3 billon this year, "the economy is growing, more people are working, real income is up and unemployment is down," Duncan said.

But fears over a strong Canadian dollar against the U.S. greenback, soaring energy costs, and the loss of 77,000 Ontario manufacturing jobs between 2001 and 2006 have forced Duncan to act.

"The plan will strengthen long-term economic productivity, while stimulating investment and job growth today, and move us to a greener, more sustainable future," the finance minister said, noting economic growth for this year is a worryingly low 1.1 per cent but should jump to 2.8 per cent by 2010.

To help Ontario workers and the province's least fortunate through "an uncertain economic outlook," Duncan unveiled an ambitious retraining program.

"The plan will train unemployed workers for new careers, expand apprenticeships, build more spaces in colleges and universities, and help students with education costs," he told the Legislature.

"Some 20,000 unemployed workers will get long-term training that launches them into new, well-paying careers through our $355 million second career strategy," said Duncan, adding apprenticeship programs will also be expanded by 25 per cent over three years to eventually help 32,500 apprentices.

To combat poverty, Duncan confirmed what Premier Dalton McGuinty announced last week: $135 million over three years for free dental care program for poor families, and $32 million over the same period for student nutrition programs in schools and community centres.

As well, there is two per cent increase in social assistance benefits, which will barely keep pace with inflation.

Duncan also repeated McGuinty's pledge for $1 billion for municipal infrastructure, including $100 million this year for affordable housing.

That total includes $497 million for Metrolinx public transit projects in the Greater Toronto Area and Hamilton, and $400 million for roads and bridges outside Toronto.

-- Metroland News Service