Ontario Finance Minister James Flaherty introduced his first Budget on May 9, 2001. In an environment where the most recent fiscal year generated a record $3 billion surplus, Ontario has continued its program of tax reduction initiatives.

The Minister announced a commitment of funds to transportation infrastructures and environmental projects, services and facilities for the disabled and abused, increased operating grants to colleges and universities (to address anticipated enrolment increases) and the creation of a new post-secondary institution, the Ontario Institute of Technology.