The Canadian Taxpayers Federation (CTF) today responded to the Ontario government's Fall Economic Statement which announced Ontario will deliver a $500 million deficit, despite having increased taxes and having seen government revenues climb 42% in six years. CTF Ontario Director Kevin Gaudet said, "the premier is borrowing today so taxpayers of tomorrow will pay for his bad spending habits of the past six years."
Gaudet continued, "The 2008/09 budget set spending at $96.2 billion with an $800 million reserve. Revenues are now projected to be $96. The only reason Ontario is going into deficit is because the Premier refuses to stick to his budget targets by spending over budget. He has blown past budgeted spending in every one of his budgets to date. That is why Ontario is back in the red."
"Ontario is already up to its necks in debt and the Premier is digging in deeper. He should stop the digging and exercise spending constraint. In the last six years program spending has grown by 50% - an unsustainable rate. Deficit financing adds to the debt which already stands at $167.7 billion. Debt interest charges stand at $9.0 billion per year. This amounts to $1.4 million an hour of taxpayer dollars going to service an increasing debt load. The debt load already is $13,102 for every man, woman and child in Ontario."
"The CTF has long been calling for laws limiting spending to no more than the combined rate of inflation and population growth. Had the premier followed this advice, Ontarions would not be saddled by more bad debt", concluded Gaudet.
