• Budget 2015-16 shows a $10.9 billion deficit, projects a $8.5 billion deficit next year 
• Wynne and Sousa plan a series of new taxes that will hurt thousands of Ontario families, including the ORPP payroll tax, beer tax, and cap-and-trade tax

The Canadian Taxpayers Federation (CTF) is deeply concerned about the financial future of the province, after finance Minister Charles Sousa today announced a deficit projection of $8.5 billion following last year's $10.9 billion deficit. The Minister also confirmed a series of new taxes that will squeeze the middle class and small businesses.

“The Ontario government is deepening the hole of debt they’ve led our province down with the largest deficit in Canada," said CTF Ontario Director Christine Van Geyn. “Last year Wynne and Sousa spent $10.7 billion on debt interest alone, and this year that spending is growing to $11.4 billion. The cost of interest alone is the fastest growing expenditure of this government."

Since the Liberals took office, total spending has increased from $80 billion in 2003 to $132 billion for 2015, a 64.8 per cent increase. "While this budget projects that the pace of growth will slow, the Premier will need to face off against the public sector in order to achieve spending cuts of 5.5 per cent. But cuts alone will not be enough to cope with the province's record debt levels." added Van Geyn. 

"The government is turning to the taxpayers of Ontario to cover the ballooning interest costs. Wynne and Sousa are hiking taxes on just about everything to deal with the province's record debt levels," said Van Geyn.

Some of the new taxes that the 2015-16 budget outline includes the previously announced cap-and-trade tax, a new beer tax, and the ORPP payroll tax. The budget also outlines revenue the government expects to raise from the partial sale of Hydro One. However, the sale of Hydro One means that a portion of the utility’s revenues previously dedicated to paying the corporation’s debt must now be made up elsewhere, possibly through a hydro rate hike, through new debt, or in the form of a new hydro tax.

“This budget is terrible news for the people of Ontario and for the future of our province’s economy,” said Van Geyn. “The government’s lack of financial management is reckless and is mortgaging our future with crippling debt and deficits.”