The Ontario government plans to balance its books in five years by taking a tough stand in upcoming labour talks with public-sector workers and through sweeping changes to government pension plans.

Ontario's cash-strapped Liberal government hopes to save hundreds of millions of dollars a year by reducing grants to businesses.

Ontario Finance Minister Dwight Duncan admits the opposition parties may find much to dislike in today's budget. Among the measures are plans to reform pensions for Ontario's public sector workers.

The Ontario government plans to balance its books in five years by taking a tough stand in upcoming labour talks with public sector workers and through sweeping changes to government pension plans.

Ontario Teachers' Pension Plan reported Tuesday that its funding shortfall narrowed in 2011 as the value of its net assets reached a record high.