TORONTO, ON: The Canadian Taxpayers Federation (CTF) is disappointed with the Wynne government for reintroducing the same risky budget that not only triggered an election, but also caused a credit rating agency to lower the province’s credit rating outlook from stable to negative.
“The May Day budget was a reckless and irresponsible fiscal plan for Ontario,” said CTF’s Ontario director Candice Malcolm. “By growing program spending and relying heavily on borrowing, the government is putting us all at risk of a debt crisis, and putting future taxpayers on the hook for today’s mistakes.”
Ontario’s credit rating was already downgraded following the 2012 budget. Moody's once again lowered Ontario’s credit outlook on July 2, 2014, following the election outcome, signalling future downgrades that will make future borrowing more expensive for taxpayers.
The new Ontario budget, like the old one, still spends $130.4 billion and features income tax hikes, new taxes on flying and tobacco, a new payroll tax, a new borrowing scheme for subways in Toronto, corporate welfare slush funds, and a $12.5 billion deficit.
“Their plan is a gamble,” said Malcolm. “They are hoping desperately, and against the odds, that by borrowing and implementing a tax-and-spend agenda, it will somehow spur economic growth to balance the budget in two years. That is the equivalent of a person on the verge of bankruptcy taking a cash advance from their credit card, going to a casino, and putting it all on 25 red.”
Ontario has run seven straight deficits and borrows more than any other provincial or state level government in the world. Our per capita provincial debt has surpassed $20,000.
“The Wynne government is in denial. After consecutive deficits, record debt, wasted stimulus spending, and out-of-control borrowing, Ontario is no better off,” said Malcolm. “But they stubbornly continue to repeat the same mistakes and ignore all warnings from their own civil servants, banks, professors and economists.”
“They are purposely ignoring widespread economic concerns and doubling down on their failed ideas. It’s a recipe for disaster,” concluded Malcolm.
