“Unlikely Assumptions” Underpin Government Debt ClaimsSeptember 6, 2017
QUEEN’S PARK – The Financial Accountability Officer (FAO) has echoed concerns of the Official Opposition and cast serious doubt about the Wynne government’s debt reduction claims, Nipissing MPP Vic Fedeli said today.
In a new commentary, the FAO says not only will the debt-to-GDP ratio not shrink by 2021-22 as the government claims, but will likely rise to 40.3 per cent, with another $76 billion in debt being added. That would bring Ontario’s debt to a staggering $392 billion.
“The FAO says the government is assuming on-going balanced budgets, on average, over the next 12 years; future capital spending as laid out in the long-term infrastructure plan; and a continuation of strong economic growth,” said Fedeli.
“He goes on to say if any of these relatively optimistic assumptions fall short of expectations, the government’s 27 per cent debt-to-GDP target by 2029-30 will not be achieved,” Fedeli continued.
“This is a continuation of the shell game the government has been playing with Ontario’s finances for years. Premier Wynne simply can’t be trusted to put the interests of Ontarians first.”