Massive Budget Deficits Lead to Credit Outlook Downgrade
April 18, 2018This morning, Moody’s Investors Service downgraded the outlook on Ontario’s credit rating to “negative” from “stable.” Moody’s referenced the 2018 budget as a reason, saying it brings “growing spending pressure that will need to be addressed in the near future.”
“This government broke their promise to run a balanced budget for years to come, and are plunging Ontario into years of deficits,” said Nipissing MPP Vic Fedeli. “They need to realize there are consequences to their actions.”
Ontario is the most indebted province or state in the world. The 2018 budget runs billion dollar deficits for six years, and doesn’t outline a credible path to balance.
“Interest on our debt is already crowding out the services we all depend on like our schools, our hospitals, and our roads. Ontario cannot afford a change in our credit rating,” added Fedeli.