Ontario Premier Dalton McGuinty announced funding for a number of social programs Monday, kicking off a new session of legislature at Queen's Park.

McGuinty announced $267 million would go towards improving affordable housing, kids' breakfast programs and dental care for low-income earners in Ontario. He made the announcement while visiting an east-end Toronto school Monday morning.

This is how the money will be distributed:

• $32 million will go towards expanding the student nutrition program;
• $135 million will be put towards a dental care plan over three years to assist low-income families; and
• $100 million will help repair 4,000 affordable housing units.

However, the Opposition said the Liberals should be more careful with how they manage the economy.

McGuinty has been under pressure to cut corporate taxes and find some way to help the ailing manufacturing sector.

Ontario PC Leader John Tory said the Liberals shouldn't be on a spending spree when the province has some of the highest business taxes in the country.

The Conservatives cited figures that show the Liberals have increased spending by 41 per cent - about $25 billion -- since they came into power in 2003.

"I think Mr. McGuinty is fiddling while the flames are starting to burn around us," Tory said. "In terms of the Ontario economy there is much more he could do to fix this province without blaming everyone else and without sitting and saying don't worry, be happy."

McGuinty said being competitive is not just about the level of taxes but about partnerships that are made with businesses and other communities in the province.

"Competitiveness includes not only the level of taxation but the degree to which we invest in infrastructure, build roads, bridges," he said. "I also define competitiveness in Ontario in the quality of our health care that's available to all Ontarians."

NDP Leader Howard Hampton said the funding announcement is not enough to help the number of people struggling financially in the province, pointing to the troubles on the Toronto Stock Exchange.

"Today, the Toronto stock exchange has dropped another 400 points...people...thousands of people are losing their jobs every week and people are increasingly worried," he said.

Bob Runciman, a Conservative MPP, said Ontario needs to play catch up.

"Ontario now finds itself almost dead last in the country for economic growth," he said. "The government is on the wrong track. Ontario is going one way, the rest of the Canada in another."

McGuinty retorted by saying he was not going to follow the path the Conservatives took when they were in power that resulted in a $5.6 billion deficit.

With a report from CTV Toronto's Paul Bliss