A Comment from the Ontario Conservative Party
Posted July 19th, 2016 on Niagara At Large
Queen’s Park, Toronto – This Tuesday, July 19th, the Financial Accountability Officer of Ontario confirmed that the Wynne Liberals’ mismanagement and reckless spending is causing Ontario’s debt to spiral out of control with no end in sight, stated Nipissing MPP and Finance Critic Vic Fedeli stated.
In his latest report, the FAO indicated that the province’s net debt is set to rise by over $50 billion by 2020-21 to a record $350 billion. He also indicated Ontario has the highest debt burden among the major provinces, carrying $2.40 in net debt for each dollar of provincial revenue.
“This July 19th, the Financial Accountability Officer confirmed the province’s finances are simply out of control and Ontario will continue to be the largest sub-national borrower in the world,” said Fedeli.
“He also confirmed what we’ve been saying for months – the government is using one-time money from asset sales, contingency funds and tax increases to artificially balance the budget in an election year. His report states very clearly that Ontario’s net debt will continue to rise due to annual deficits from 2018-19 to 2020-21,” continued Fedeli.
The FAO also indicated that interest payments could increase by $350M – more than the budgets of the Ministries of Labour and Indigenous Affairs – with each one point increase in interest rates. As a key risk, he noted that nearly 40 per cent of Ontario’s existing debt is set to mature in 2020.
“These aren’t just abstract numbers. Premier Wynne often speaks of the world we should be leaving our children and grandchildren. This July 19th, the FAO confirmed she is creating a bleak future for Ontarians, where funding for essential services such as education and healthcare will continue to be crowded out by her government’s mismanagement and recklessness,” concluded Fedeli.
An Introduction to the Finance Accountability Office of Ontario’s July 19th, 2016 report –
“The Financial Accountability Office of Ontario (FAO) expects the Province’s net debt to rise by over $50 billion by 2020-21 to $350 billion. Understanding the nature of the risks of debt to the Province’s fiscal plan can help Members of Provincial Parliament in assessing any debt management and/or reduction strategy.
The Province’s debt burden is one of the highest among provincial governments in Canada….”
Visit the Financial Accountability Office of Ontario’s website at – http://www.fao-on.org/en/ .
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