Budget highlights

The deficit is $5 billion less than forecasted, $9.8 billion instead of $14.8 billion.

That’s partly due to holding the line on salary increases for people like the teachers and other government workers as well as higher tax revenues and from higher income from government businesses like the LCBO.

When you take a longer view of government spending, you’ll see some interesting numbers. In 2004-2005, the Ontario government spend about $86 billion. In the fiscal year ending on March 31st, the province spent $124 billion. That’s an increase of almost $40 billion in eight years. Or to put it another way, roughly half as much again as it spent eight years ago.

Government revenues have also increased massively. The province is taking in $30 billion more than it did eight years ago. But that still isn’t enough to keep pace. It’s forecasting to come up short by almost another $12-billion in the next year.

When you add it all up, Ontario’s net debt is projected to come in at $253.8 billion.