TORONTO - Ontario will introduce legislation next week to allow a portion of annual surpluses to be directed towards municipal infrastructure projects, Finance Minister Dwight Duncan said Wednesday.

Under the proposed Investing in Ontario Act, Duncan said if the government records a surplus of more than $800 million this year, the first $600 million will be allocated towards paying down the debt with any remaining funds going towards building bridges, roads and transit.

Under current legislation, the government is required to use all year-end surpluses to pay down the province's $160 billion debt.

Duncan said the new act strikes a balance between debt reduction and investing in the provinces priorities.

Funds from any "unanticipated" surplus will be allocated to Ontario's 445 municipalities based on population.

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