Reserve used to cut Ontario deficit

Ontario’s deficit is $800 million lower than forecast, making it the fifth year in a row the Liberal government has beat its projected target.

But according to finance minister Charles Sousa, the province used a $1 billion reserve to trim the deficit, because of a decline in revenues.

“I’ve taken a cautious approach in our revenue estimations. We take an average of independent economists, private sector forecasts, and then we tone it down even further.”

“Still, those revenue targets weren’t met. Not just in Ontario, but right around the world. Notwithstanding we have taken steps control our spending, find ways to measure austerity while at the same time invest in things that protect our services and stimulate economic growth.”

PC finance critic and leadership candidate Vic Fedeli’s accusing the Liberals are deliberately deceiving the public about Ontario’s financial state.

“What we have really seen, it’s like a Shania Twain song, up up up, that’s all we have seen. We have seen the deficit go from $9.2 billion to 10.5 billion, forecasted to go to 12.5 billion next year.”

“All up. Going in the wrong way. Spending in 14 ministries go up by $4 billion, that’s going the wrong way.”

NDP finance critic Catherine Fife is critical of the government’s use of reserve money. “It’s not a sustainable plan to address the deficit.”

“We have an operational systemic issue of spending in this province and this government seems reluctant to address it in a real and sustainable way.”

Sousa insists the Ontario government is on track to balance its books by 2018.