Financial Accountability Officer Confirms Ontario’s Debt is Out of ControlJuly 19, 2016
QUEEN’S PARK – Today, the Financial Accountability Officer confirmed that the Wynne government’s mismanagement and reckless spending is causing Ontario’s debt to spiral out of control with no end in sight, Nipissing MPP Vic Fedeli stated today.
In his latest report, the FAO indicated that the province’s net debt is set to rise by over $50 billion by 2020-21 to a record $350 billion. He also indicated Ontario has the highest debt burden among the major provinces, carrying $2.40 in net debt for each dollar of provincial revenue.
“This morning, the Financial Accountability Officer confirmed the province’s finances are simply out of control and Ontario will continue to be the largest sub-national borrower in the world,” said Fedeli.
“He also confirmed what we’ve been saying for months – the government is using one-time money from asset sales, contingency funds and tax increases to artificially balance the budget in an election year. His report states very clearly that Ontario’s net debt will continue to rise due to annual deficits from 2018-19 to 2020-21,” continued Fedeli.
The FAO also indicated that interest payments could increase by $350M – more than the budgets of the Ministries of Labour and Indigenous Affairs – with each one point increase in interest rates. As a key risk, he noted that nearly 40 per cent of Ontario’s existing debt is set to mature in 2020.
“These aren’t just abstract numbers. Premier Wynne often speaks of the world we should be leaving our children and grandchildren. Today the FAO confirmed she is creating a bleak future for Ontarians, where funding for essential services such as education and healthcare will continue to be crowded out by her government’s mismanagement and recklessness,” concluded Fedeli.