Ontario’s debt-to-GDP ratio has climbed from 26 per cent pre-recession to 38 per cent today.
Ontario’s upcoming provincial budget will likely include a significant increase in government spending with an eye on the spring election.
The upcoming 2018 budget will send a clear signal about the Wynne government’s direction.
Since 2008/09, Ontario has seen its net debt increase every year by an average of $15.5 billion.
Next year Ontario’s debt burden per person is projected to surpass Quebec’s.
If Toronto’s housing market continues to cool there would be substantial negative implications for provincial revenues.
The Wynne government’s fiscal plan calls for an average of $11.8 billion annually in new debt between now and 2019/20.
By restraining the growth in program spending, Quebec balanced it’s operating budget.