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.
In 2016-17, the deficit was $0.991 billion but $6.276 billion was added to the net debt.
Ontario’s provincial debt nearly doubled from $157 billion in 2007/08 to $301 billion in 2016/17.
Since 2008/09, Ontario has seen its net debt increase every year by an average of $15.5 billion.
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.
Provincial Finance Minister Charles Sousa tells an upbeat story about a booming Ontario, but reality is more complicated. The province’s finances remain a mess.