Many Ontarians have likely heard a horror story or two about their government’s growing debt and the resulting strain on public finances. You can’t blame them. Sources of evidence abound.
debt and deficit
Ontario’s provincial government wants a balanced budget for the 2017-18 fiscal year, and Finance Minister Charles Sousa is adamant that Ontario will reach that goal.
There was an aura of complacency in Queen’s Park as the Ontario government released its update on the state of provincial finances.
Imagine receiving a credit card bill that totaled $243,476. This would no doubt be a shock for most Canadians. But if you add up all the liabilities of every Canadian government "federal, provincial, and local" that is in fact how much each taxpayer would owe of the $4.1 trillion total in direct debt and unfunded liabilities.
This admittedly is a very large number and much bigger than what is usually talked about by both politicians and pundits alike. So let's deconstruct it to gain a better understanding.
No normal person pays close attention to who is "in" or "out" as finance minister, and that's a good thing. It means the politician in question has avoided messing up the lives of ordinary Canadians. Still, their actions can and do matter, for better or worse.
Over the course of the past several months, outgoing Bank of Canada Governor Mark Carney and Federal Finance Minister Jim Flaherty have repeatedly warned that Canadians are spending beyond their means and taking on too much debt.
A concern of the Bank of Canada...has been the pace of growth of household debt Carney recently noted. Minister Flaherty added, While interest rates are currently low by historical standards, eventually they will rise. Canadians should . understand this when taking on significant debt