TORONTO: The Canadian Taxpayers Federation (CTF) responded with concern to the news that Ontario will run a deficit of $24.7 billion for 2009-10.
“Making tough decisions to balance the books should start at the top with Premier McGuinty and all of cabinet taking a pay cut. They can follow this with a province-wide three year freeze on all public sector salaries,” said CTF director Kevin Gaudet.
Spending - Blows Past the $100-Billion Mark
Government program spending under Mr. McGuinty was $64.3-billion in 2003/04. Spending in 2009-2010 sees it explode past the $100-billion mark at $104.3 billion. This is an increase of $40 billion or 62.2 per cent in six years. Spending has grown at almost twice the rate of inflation and population growth combined.
“There’s little question this deficit has been caused by this government, not some global recession,” continued Gaudet. “Had they simply slowed their spending growth over the last six years, Ontario would still be a ‘have’ province.”
Deficit Spending at $782 per second
The government is projecting a deficit of $24.7 billion, the largest deficit in the history of Ontario. Deficits are projected through 2011-12. In four years of deficits, Premier McGuinty will add $71.6 billion to Ontario’s debt. As well, there is no plan to end this deficit spending.
Gaudet concluded, “To balance the books the government must first lead by example. Premier McGuinty and cabinet should follow Alberta’s example and take a pay cut. New Brunswick has announced cuts to the size and wages of the public sector. Ontario should impose a three year freeze on all public sector employees. As well, all consulting contracts must be ended. Most travel and adertising must be ended. Corporate welfare must be eliminated.”
