Ontario government won’t worry about eliminating deficit if economy slows
Announcement sparks fears of increasing debt
TORONTO — Ontario is on track to eliminate an $11.7-billion deficit by 2017-18, but has decided to continue spending rather than worry about meeting its target if economic growth weakens even more, Finance Minister Charles Sousa announced Thursday.
The Liberal government will protect investments in jobs and growth ahead of meeting “short-term targets” to balance the books, Sousa announced in the annual fall economic statement.
“Stronger economic growth and new jobs are the surest, fairest path to higher revenues and a balanced budget,” he said.
The finance minister also said the slow and uncertain recovery from the global recession has led to $5 billion less in projected provincial revenues since 2010.
Earlier Thursday, Premier Kathleen Wynne previewed Sousa’s statement in a speech to a Toronto conference on public-private partnerships, insisting the Liberals were not backing off their goal to eliminate the deficit within four years.
“It’s not that we are saying we’re abandoning that and we’re going to now just spend and invest,” she said. “We’re the leanest government in the country. We need to continue to make sure that we control spending in a rational way, but I am determined that we are not going to cut and slash the services that people need.”
The Canadian Taxpayers Federation says the lack of spending cuts and the continued stimulus from the Liberals means Ontario is “abandoning any hope” of a balanced budget.
“Stimulus spending hasn’t worked in the past,” said CTF Ontario Director Candice Malcolm. “In Ontario, it simply slowed our recovery and left us with a mountain of debt to be paid off by future taxpayers.”