Ontario’s cumulative deficit from 2009 to the end of last year was approximately $81.9 billion—50 per cent more than projected in 2009.
Economists recognize that a cap-and-trade system is equivalent to a tax on carbon emissions.
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.
Something as dull sounding as public-private partnerships (P3s) has suddenly grabbed headlines thanks to a recent report from Ontario’s Auditor General.
There was an aura of complacency in Queen’s Park as the Ontario government released its update on the state of provincial finances.
We’ve seen this script before. Higher spending. Tax increases. Persistent deficits. Growing debt. Warnings from credit rating agencies. A government unwilling to make the tough choices to turn things around.
Ontarians have re-elected a government whose decade long reign dovetails with the lowest growth rate of provincial real per capita GDP in the Canadian federation.
Another year has come and gone and Ontario's weak public finances remain largely unchanged. The provincial government did little to improve its fiscal position in 2013 and recently signalled it intends to continue with debt-financed spending into the New Year. But the status quo isnt serving Ontarians well. For 2014, the government should chart a new course that places provincial finances on a more sound footing. That would be a much-needed New Year's resolution for Canadas largest province.
The May 2 minority Liberal budget is a politically expedient document that likely avoids an election but unfortunately fails to tackle Ontario's looming fiscal crisis. The longer the province waits, the more difficult and painful the reforms will be when the inevitable day of reckoning arrives.
Even Greece, the poster child for rampant debt, carried an Ontario-style debt load as recently as 1984
Don Drummond (2012) Commission on the Reform of Ontarios Public Services