According to a series of internal government documents authored early last year, the Ontario government will most likely be missing its deficit reduction targets for the next two years, and in order to minimize that by making up for the shortfall, it must either dramatically cut spending or hike revenue. These documents were originally briefing notes written by senior bureaucrats for Premier Kathleen Wynne, however later they were later acquired by a legislative committee and released by the Progressive Conservative opposition on Monday.
These confidential documents state the same reasons that led Finance Minister, Charles Sousa, to announce last fall that the government is prepared to miss deficit reduction targets in the medium-term. According to the notes, if the Liberals choose to reach deficit targets, they will have to make aggressive cuts in program spending of any government in Canada. For instance, it stated that the spending on health care would have to drop by five per cent when population growth and inflation are factored in.