(TORONTO) With today's budget presentation at Queen's Park many Ontarians were hoping for a return of fiscal prudence. While this budget contains some cost saving measures it falls short of what many economists were hoping for.
"Yes, we will see some token spending freezes and minor pension system adjustments - but it will take a great deal more than 'tinkering' to get our province back on track," says Peter Coleman, President and CEO of the National Citizens Coalition. "Yet, the McGuinty government simply does not seem to understand that they are the engineers of their own problems."
A public sector salary-cap or wage freeze can only have a limited effect when the number of public sector employees earning over $100,000 has increased fivefold since 2003.
"This government has increased spending from $73-billion in 2003 to more than $127-billion today," adds Coleman. "And today McGuinty is choosing once again to ignore the best recommendations he has received to lower this total - recommendations paid for with public money."
Earlier this year, economist Don Drummond was recruited by Dalton McGuinty and Finance Minster Dwight Duncan to provide a frank assessment of Ontario's fiscal outlook - and the view was not pleasant.
Ontario's Liberal government has already asserted its commitment to all-day kindergarten programs - with a cost of $1.5-billion annually - and the enormously expensive $300-billion Green Energy Act. Furthermore, this budget cancels the promised reductions in the corporate tax rate - which will only increase the burden on Ontario's small businesses.
"Dalton McGuinty has pledged to rein in spending and vastly improve his government's record of accountability and oversight," says Coleman. "But these are more empty words - just like his promise to lower the corporate tax rate and help small businesses create jobs."
After eight years of broken promises and wasted opportunities, Ontario is facing a staggering $15.2-billion deficit in 2012 that is not scheduled to disappear until 2017 at the earliest.
"How can this government ever expect to climb out of deficit when they do not have a real plan or a leader capable of making the difficult decisions about reducing spending? This government is mortgaging Ontario's future - and for what? Taxpayers are receiving no value for their investment in the province."
While the intention of this budget is encouraging, it remains unclear how the McGuinty government intends to deal with Ontario's powerful public sector unions that will be negotiating new contracts in the near future.
"Ontario still has a long way to go when it comes to undoing the damage done by years of wasteful spending," adds Coleman. "This budget is a step in the right direction for McGuinty, but it comes down to little more than the arsonist putting out his own fire."
Peter Coleman
President and CEO
National Citizens Coalition
Email: pcoleman1@rogers.blackberry.net
