Ontario’s government is spending more than it takes in each year. This year will represent the province’s eighth consecutive budget deficit.
government workers
Against a backdrop of persistent deficits and growing debt, the federal and many provincial governments are engaged in collective bargaining negotiations with their public-sector unions.
Premier Jim Prentice dropped hints for months that the 2015 provincial budget was a once-in-a-generation chance to “fix” Alberta’s finances.
Over the next two months, Metro Vancouver residents will decide whether they want to pay $250 million more in sales tax each year to help fund a $7.5 billion capital expansion plan, mainly for public transit.
As the Quebec government struggles to eliminate its deficit and rein in the largest debt burden in Canada, it has identified government-sector compensation as a way to restrain spending and balance the budget in 2015/16.
The Ontario government is currently neck deep in negotiations with public sector unions including those representing bureaucrats, teachers, and police officers.
As Alberta’s provincial and municipal governments grapple with declining oil revenues and a weakening economy, a sober review of government spending should be part of any belt-tightening initiative. One place to start is the compensation of government employees, a key spending item for all governments.