• Nine years of deficits add $116.6 billion to debt, $9,328 for each Ontarion

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TORONTO: The Canadian Taxpayers Federation (CTF) responded to the Ontario budget today decrying the McGuinty government’s plans to run nine years of deficits. CTF Federal Director, Kevin Gaudet said “this is a never-ending deficit nightmare. Premier McGuinty is just closing his eyes and hoping it will go away. Instead, he should be taking meaningful action to get spending under control.”

Nine Years of Deficit Spending adds $116.6 billion to debt – borrowing at $675 per second

The government is projecting a deficit of $21.3 billion for 2009-10, the largest deficit in the history of Ontario. Deficits are projected through 2017-18. In nine years of deficits, Premier McGuinty will add $116.6 billion more to Ontario’s debt. That amounts to $9,328 for each man, woman and child in Ontario. The government is borrowing at a rate of $58.4 million per day.

“If, during the last six years, the government had held the line on spending, Ontario wouldn’t be suffering through this nightmare. There would be no deficit at all,” said Gaudet. 

Spending -  Blowing Past the $100-Billion Mark – climbs 11 per cent per year

Government program spending under Mr. McGuinty was $64.3 billion in 2003/04.  Spending in 2010-2011 is projected to explode to $115.9 billion. This is an increase of $51.6 billion in seven years – an increase of over  80 per cent – above 11 per cent for each year of the McGuinty government.

Spending restraint measures include a three year freeze on MPP pay, a measure the CTF has been calling for and applauds. However, “freezing the pay of non-unionized public sector employees while refusing to do anything to reduce the lucrative compensation of unionized public sector employees is a meaningless gesture that will only serve to create internal job hostility” said Gaudet.

HST Hikes taxes by 8 per cent July 1st , Revenue to Climb $1.7 billion

The CTF called on the McGuinty government to reduce the blended rate down to 10 per cent from the proposed 13 per cent. Instead, there is a new credit for northern resident of up to $200 per family. The HST for gasoline alone will increase costs by over $800 per year,” Gaudet said.

Equalization Climbs to $972 million

This is an increase of $625 million from 2009-10 and provide further evidence of a need to reduce the program.

Gaudet concluded, “this budget offers a do-nothing approach to financial security for which Ontarions will have to pay a large price for years to come.”

By: Kevin Gaudet
Posted: March 26, 2010
Topic: Ontario

Type: News Releases

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