“The economy is slowing down, their overall spending is out of control, they have no margin for error, and their expectations for year-end savings are inflated. I think it’s very likely that they won’t be able to balance their budget at the end of 2008-2009. That means a deficit is a real possibility.” – Wellington-Halton Hills MPP Ted Arnott
TORONTO – After repeated warnings of economic challenge, the Dalton McGuinty-led Liberal government has acknowledged Ontario has a deficit.
In an economic statement last week, Ontario Finance Minister Dwight Duncan was forced to downgrade his economic growth assumptions and now estimates a deficit of a half a billion dollars this year.
Wellington Halton Hills MPP Ted Arnott said that is something many have known for a long time.
“The McGuinty government has thrown its March budget assumptions out the window,” said Arnott. “They ignored our warnings, refused to plan prudently, and now Ontario is in the red – Liberal red.”
The $500-million deficit projection will probably be even higher, he added, saying that the government’s plans to find $1.1-billion in year-end savings will most likely never materialize.
“This could mean a deficit of as high as $1.6-billion,” explained Arnott. “We know from the Bob Rae years that today’s deficits are tomorrow’s higher taxes.”
When the provincial government projected a balanced budget last March, Arnott immediately disputed its assumptions, pointing to the real possibility of a deficit.
“I wish I had been wrong,” he said. “It’s now painfully obvious that the government failed to plan effectively for this economic downturn.”
Among the biggest casualties is the Ministry of Tourism, which faces a crippling 25 per cent cut.
He is a long-time member of the standing committee on finance and economic affairs, and serves as his party’s tourism critic.
He has been consistently critical of the Liberal government’s ignoring of the economic crisis in the province, and has been badgering the government for years about manufacturing jobs being lost.
