Ontario’s economic outlook

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While the Liberals are asking Ontarians to feel good about another multi-billion dollar deficit, the opposition says the Liberals need a reality check. The finance critics for both the Conservatives and New Democrats say the Liberals have fudged the deficit to look lower than it actually is. Cindy Ssordas has reaction.

The opposition says the liberals are digging a deeper hole of debt with their practice of selling assets to balance the books.

Vic Fedeli is the Conservative Finance Critic. “Last year it was from the GM shares they sold to help balance the budget, in addition to the money they took out of the reserve last year. This year it’s the Hydro money, next year it’ll be the LCBO warehouse, the OPG head office…what happens when you run out of assets to sell?”

“The FAO said that Ontario would see modest increases from selling Hydro One, but as of 2016 selling Hydro One will actually cost the province money. It’ll have a negative impact on revenues and after 60% of Hydro One being sold off that will amount to 500 million dollars” said NDP Finance Critic Catherine Fife.

DeGroote School of Business professor Marvin Ryder says the Liberals actually predicted a deficit one billion dollars higher than what was announced today. “Finance ministers always tend to overestimate the bad news so they can look like heroes by the end of it.”
He says the Liberals’ promise to balance the books appears to be on track. “There’ s not going to be any tax increases. They feel fine about revenues coming in so if you’re worried about budget balances we’re still on track doing that.”

Ryder says unless a war breaks out in the eastern part of the world, Ontario will continue to be a leader of economic growth.