The Ontario budget will cut personal and corporate taxes and promises every taxpayer a rebate of up to $200.

Finance Minister Ernie Eves says the tax rebate is worth one billion dollars.

Eves has also announced some modest personal income tax cuts.

Under the changes a two-income family of four making $60,000 will save $240 dollars this year.

The changes will complete Ontario's promised 20 per cent reduction in income taxes by next year.

Business gets a major break, with corporate taxes being slashed by nearly half by 2005.

Finance Minister Ernie Eves surprised no one by announcing Ontario recorded a small surplus in 1999, and will have a balanced budget this year with revenues of $62.1 billion.

Eves applied the $654 million surplus from 1999 to the province's debt, which has been reduced to $114 billion.

Health care spending will increase by $1.4 billion this year to $22 billion dollars.

Another $11.5 billion has been allocated for education, and one billion dollars will be spent upgrading and repairing provincial highways.

Ontario is also establishing its own income tax system, which will be a percentage of income rather than a percentage of federal tax.