This article was last updated on April 16, 2022
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Sources says that the Ontario government is now prepped to give up its deficit-reduction targets in order to avoid deep program cuts as Premier Kathleen Wynne’s government considers to steer away from austerity. This new change in priorities is deemed to be reflected in the fall economic statement of Finance Minister, Charles Sousa, on Thursday.
It is alleged that the statement will avoid tough spending restraint set by Ms. Wynne’s predecessor, Dalton McGuinty, and pursued in his final term. The global recession faced in 2008 lurched Ontario into deeper deficit, partly to rescue its splashing auto industry. And later after winning a re-election in 2011, Mr. McGuinty applied even rougher austerity measures aimed at balancing the budget. Many governments worldwide are facing the same problem as Ontario, largely as to how to dig themselves out of debt in a time of slow economic growth. Many are inclined to boldly engage in aggressive budget-slashing, but Ms. Wynne is of the view that spending will spur economic growth that will in return be reflected and profited in shape of higher revenues.
The Ontario government’s statement is expected to concentrate on spending, especially on infrastructure, in order to boost economic growth. The overall infrastructure outlay, $35-billion over three years, will remain unchanged, though Mr. Sousa is still anticipated to announce new projects within that funding envelope. He is expected to announce a dedicated infrastructure trust fund, into which the government can divert money to separate it from general revenue and ensure it is spent on capital projects.
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