If interest rates rise faster than expected, Ontario’s annual debt interest payments could increase by up to $857 million in 2017/18.
ontario budget
Ontario’s government is spending more than it takes in each year. This year will represent the province’s eighth consecutive budget deficit.
On Thursday, Finance Minister Charles Sousa will provide an update for Ontarians on the state of provincial government finances.
The Ontario government's strategy to eliminate the projected $8.5 billion deficit has largely hinged on hoping revenues will grow robustly and eventually catch up to spending increases. This is a risky strategy.
The Ontario government has pledged to eliminate its budget deficit by 2017/18. However, the government’s recent record on fiscal issues casts doubt on whether it will meet this target.
The Ontario government has dug itself deep into debt and continues to spend more than the revenue it brings in each year.
Last week, Standard and Poor’s announced a downgrade to Ontario’s long-term credit rating, pointing to the province’s “very weak budgetary performance.”
Ontario’s 2015 budget, like those of years past, needed a concrete plan to get government finances on a sound footing. Yet again, the budget failed to deliver.