“The Liberals heard over and over again at the pre-budget hearings their tax and spend approach can’t continue. It’s time they finally heed the advice from the experts.”
QUEEN’S PARK – A new credit agency report represents another warning to the Wynne Liberals to abruptly change direction when it comes to Ontario’s finances, Ontario PC Finance Critic and Nipissing MPP Vic Fedeli said today.
Moody’s says Ontario is in a more challenged position than Quebec to eliminate its deficit because “it faces larger ongoing deficits and also because there is a risk that all the cost controls designed to return Ontario to a balanced budget may not be carried out.”
“Ontario's persistently large deficits, and its tendency to delay the most significant cost cutting measures towards the latter years of its projected timeline for returning to a balanced budget, increase the risk that the province will be unable to achieve its goal," said Michael Yake, Moody’s Vice President and Senior Analyst and report author.
Moody's also expects the province's debt burden to remain elevated for several years after balanced budgets are reached.
“This is the latest in a series of economic warnings the scandal-distracted Liberals have ignored. First, they were told they wouldn’t meet revenue targets, and then acted surprised when they missed those by $500 million. Then the Auditor General warned of credit rating downgrades, one of which actually happened in December,” said Fedeli.
“Their refusal to stop new spending is driving up our debt, and is hurting business investment confidence,” Fedeli added, pointing to an Ontario Chamber of Commerce survey which showed business confidence in the province had plummeted to just 29 per cent.
“The Liberals heard over and over again at the pre-budget hearings their tax and spend approach can’t continue. It’s time they finally heed the advice from the experts.”
