Toronto, ON: The Canadian Taxpayers Federation is calling on the Ford government to control spending as the Financial Accountability Office warns that Ontario is still falling back into deficit.

“With interest charges going up, this is the worst time to plunge the province back into deficit,” said CTF Ontario Director Jay Goldberg. “Taking on debt has consequences. Last year, debt interest charges cost taxpayers the equivalent of building 12 new hospitals. That kind of waste has to end.”

The FAO is now projecting Ontario’s deficit will be $2.5 billion, which down from the government’s projected $12.9-billion deficit in its fall economic statement. Ontario ran a surplus of $2.1 billion last year.

“Taxpayers waited more than a decade for the Ontario’s deficit parade to end and it is wrong for the Ford government to dive right back into the red just a year later,” said Goldberg. “Ford should be building on the province’s $2.1 billion surplus from last year, not throwing it away.”

The FAO expects the province’s budget to be balanced by 2023-24, but only if the government restrains spending. The provincial debt currently stands at $475 billion. Ontario is the most indebted sub-sovereign government in the world. Interest charges this year will amount to $13.6 billion.

“It’s time to stop sending billions of dollars to bondholders on Bay Street,” said Goldberg. “A balanced budget means more room lower taxes and fix health care. The Ford government needs to stop digging and restore sanity to the province’s finances.”