• Deficit fire needs water, not more wood!
   
• Growth in spending continues unchecked
   
• CTF reminds Premier to keep his no-deficit pledge

OTTAWA: The Canadian Taxpayers Federation (CTF) today responded to the Ontario Economic Update and Fiscal Outlook, presented by Finance Minister Greg Sobara in the Legislature at Queen's Park.

"The Ontario government is using an age old strategy: under-commit and over-deliver. Mssrs. McGuinty and Sobara have promised the straight goods on government finances, and taxpayers demand real action to reduce spending. We saw little of this in today's statement," said CTF Research Director Bruce Winchester.

Spending this year is now slated to top $75 billion. The following table shows revenue and spending and compares budget projections with interim projections (as of today) and actual results.

"There is lots of work to be done to reduce spending. Minister Sobara must take action and identify ways to close Ontario's deficit and stop looking for more ways to add to it," said Winchester.

 

Each of the last two years, actual provincial revenue and actual provincial spending has exceeded what was presented in the previous year's budget. In both years, revenue was more than 3% higher, while spending was more than 4% higher. This is in keeping with Ontario's ten-year trend of growing revenues and spending.

"Growing spending over the last two years is the real problem inherited by the McGuinty government. This government must clearly set its priorities and live within its means. Ontario's taxpayers are sending this message loud and clear - its time for the government to sharpen its pencil and deliver on their election promise to reduce $1.2 billion in wasteful spending," concluded Winchester.