The Canadian Taxpayers Federation (CTF) today expressed serious concern that Ontario Finance Minister Dwight Duncan is reportedly considering taking Ontario back into deficit.
CTF Ontario Director, Kevin Gaudet, called on the premier to rule out running a deficit. Gaudet said, "It is widely accepted by economists and politicians of all stripes that running deficits is an out-dated ineffective way to manage government finances."
In 1999 then opposition leader Dalton McGuinty helped pass the Taxpayer Protection and Balanced Budget Act. Since then he has repealed the Act and both run deficits and raised taxes in Ontario before balancing the budget again in 2007.
Ontario Government Spending Quick Facts:
Program spending is up to $87 billion from $64 billion in 03/04.
Total Revenue is up to $91.1 billion from $68.4. Personal tax revenue is up to $28.3 billion from $18.3 billion in 03/04.
The Health Tax drains $2.7 billion per year.
Spending has grown at more than double the combined rate of population growth and inflation combined.
Ontario's total debt has grown to $167 billion.
Gaudet concluded, "what Ontario needs is not deficits but leadership by example, starting with spending restraint in government. It should be accompanied by broad-based tax relief for individuals, families and businesses to help restore confidence."
