TORONTO - The Canadian Taxpayers Federation (CTF) today reacted to Liberal Minister of Finance Greg Sorbora's economic outlook and fiscal review. The update shows that the province will continue to run budgetary deficits through 2009.

"This government keeps hedging their bets and, just like Ottawa, is not being honest with its bookkeeping. They have no excuse for being in a deficit position for the coming fiscal year and beyond," said CTF Ontario director Neil Desai. "Last year, the McGuinty government had predicted a deficit of $1.4-billion. Yet they couldn't spend as fast as they taxed and reported a paltry $298-million surplus."

While Premier Dalton McGuinty and Finance Minister Greg Sorbora are tempering Ontarians expectation for balanced budgets today, the federal government's fiscal update does not share the same pessimism. The latest report from Ottawa's Fiscal Monitor, released this week, reveals the federal government's revenues were up $5.2-billion or 6 per cent, driven by strong growth in income tax revenues. Ontario can expect similar levels of revenue growth, but is underreporting the data.

"I'm willing to bet the Minister that the province will achieve another surplus this year when all is said and done. With one year remaining before the Ontario election, voters can expect some fiscal magic," concluded Desai. "Voters will soon be told of another unexpected surplus coupled with many more pre-election spending announcements. You can bank on it."