Dalton McGuinty's government will introduce its third budget on Thursday. Once again, the Liberals are expected to run a deficit. If the political resolve to restore Ontario's fiscal house was there, the books could easily be balanced.

From the get-go Premier McGuinty has cried poor and blamed everyone else for his budget problems. First it was former Conservative Premier Ernie Eves who left the cupboards bare and a large deficit. Fair enough. Next up were former Liberal Prime Ministers Jean Chrétien and Paul Martin who shortchanged Ontario to the tune of $23-billion.

The McGuinty government claims the so-called "fiscal imbalance" is the culprit. Fix that, he says, and Ontario's problems will be solved. But all provinces insist they are owed more money from Ottawa, yet only two provinces - Ontario and tiny Prince Edward Island - are running budget deficits. A close examination of Ontario's fiscal picture tells the story of a government deliberately keeping itself in the red.

Since the Liberals assumed office in 2003, Ontario's revenues have increased by 20 per cent. Corporate income taxes in particular have soared, rising from $6.7-billion to $9.9-billion in 2004. Personal income tax revenues are also up $1-billion over the same period.

Throw in another $1.7-billion collected from the health tax in 2004 and another $2.4-billion in 2005. It is no wonder Ontario taxpayers are feeling squeezed. In addition, there is the extra money Mr. McGuinty pried out of then-Prime Minister Martin last spring when a federal election call seemed imminent, not to mention the gas tax revenue Ottawa is sending the provinces.

With all this money, surely Thursday's budget should be balanced But that is unlikely because the McGuinty government is playing politics with the province's finances. The government will wait until 2007 before balancing Ontario's books, which coincidently is an election year. Do the Grits really think this schedule will suddenly win them praise from over-taxed voters

A clear trend can be deciphered in the Ontario government's action: Every revenue increase is met with a corresponding spending increase. Since 2003, spending has increased by nearly $10-billion. The more money sent to Queen's Park, the faster it is spent. With cash rolling in, Ontario has money for everything - Toronto transit expansion, subsidies for the auto industry, post-secondary education, another cheque for the eternally fiscally-incompetent City of Toronto, and, of course, special announcements in the three ridings with by-elections currently underway.

As the Liberals tax and spend, Ontario's total debt climbs. Mr. McGuinty is sacrificing the future for the present. In 2002, the debt stood at $119-billion. Today it sits at $128-billion and costs taxpayers $9.6-billion a year in interest payments. That is over $26-million a day.

Future generations of taxpayers will be "indebted" to Mr. McGuinty because of his failure to adhere to a law mandating a balanced budget. Breaking this law - despite his explicit campaign promise to uphold it - marked the beginning of the Liberal's reign of fiscal deception in office.

Mr. McGuinty will go to the polls in October of 2007 with the fiscal record of higher taxes, one balanced budget out of four, and billions of dollars added to Ontario's debt. Ontarians will have an opportunity to reject his party, albeit with one important caveat. Conservative Opposition leader John Tory must offer voters a compelling vision, and not just more of the same. Playing only the "ethics in government" card will not be enough to win. Just ask the new prime minister. He won office on the strength of five taxpayer-friendly policies and not the federal sponsorship scandal.

John Williamson & Adam Taylor, Canadian Taxpayers Federation