Financial Accountability Officer Confirms “Deterioration” of Wynne Government Finances
November 3, 2016QUEEN’S PARK – Today, the Financial Accountability Officer (FAO) confirmed the Wynne government’s financial position is “deteriorating” and that Ontario will face budget deficits for the next five years, Nipissing MPP Vic Fedeli stated today.
“We already know there’s a trust deficit in the Wynne government, now we know there’s a financial deficit too. This morning, the Financial Accountability Officer confirmed what the Offiical Opposition has said all along – there’s a multi-billion dollar hole in their budget forecast,” said Fedeli.
In his latest report, the FAO indicated that the government would be unable to achieve a balanced budget as promised in 2017-18 and would instead have a budget deficit of $2.6 billion. The report states “Ontario’s budget would be expected to remain in deficit over the next five years.”
“The FAO confirmed the Wynne government is using one-time money from asset sales and contingency funds to artificially balance the budget in an election year, before plunging back into deficit. It begs the question, are they raising taxes further, or can we expect more cuts to frontline services?” Fedeli added.
The FAO also indicated that the province’s net debt is set to rise by over $64 billion by 2020-21 to a record $370 billion and Ontario will continue to be the largest sub-national borrower in the world. Regarding the province’s economic outlook, the report states “growth in business investment has been disappointing over the past four years.”
“This morning, the Financial Accountability Officer confirmed the province’s finances are simply out of control and raised red flags regarding Ontario’s economy. It’s no wonder, given they’ve raised taxes by more than 20 per cent in just the past five years. Under this government, Ontario is both the most indebted and the most taxed province in Canada.”
“I hope Minister Sousa recognizes the fiscal risks flagged by the FAO in his upcoming Fall Economic Statement and updates his false budget projections,” Fedeli concluded.
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