Aug. 12, 2020
Toronto, ON: The Canadian Taxpayers Federation is slamming the Ontario government for failing to cut the fat in desperate economic times in light of the first quarter finances report released today.
“It’s reasonable to increase spending in certain areas such as health care during a global pandemic, but some of this spending is completely unreasonable and flat out wasteful,” said Jasmine Moulton, Ontario director for the Canadian Taxpayers Federation. “This government’s spending problem started well before COVID-19, but taxpayers need this government to get serious about saving and cut the fat.”
Former premier Kathleen Wynne’s government spent $154 billion in its last fiscal year starting in 2017. In 2018, Premier Doug Ford’s government brought provincial spending to $163 billion. The government now projects spending will increase to $187 billion this year, with a $39-billion deficit.
The government’s COVID-19 response action plan is now projected to cost $30 billion, up from an initial estimate of $17 billion in March. New spending includes $4.4 billion for health care, $7.3 billion for people and jobs, and $4 billion for municipalities and transit agencies.
“Giving more taxpayer money to wasteful municipalities is like giving a chocolate bar to a kid throwing a tantrum: it rewards bad behaviour,” said Moulton. “There are countless examples of waste in Ontario municipalities, and the province shouldn’t be handing over more taxpayer money until municipalities cut the fat.”
Toronto Mayor John Tory recently confirmed plans to proceed with a $3.8-billion floating park above the railways leading in to Toronto’s union station, despite they city’s devastated finances. Meanwhile, the Toronto Transit Commission is looking at offering free wifi on street cars and buses.
The province’s single largest annual operating expense is the compensation of government employees. This government is giving out raises in a three-year deal that will cost taxpayers an $720 million annually.
“Normally employers try to reduce spending during tough times, but this government handed out raises as if taxpayers have bottomless pockets,” said Moulton. “It’s time for this government to abandon its big spending ways and show respect for taxpayers.”
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Jasmine Moulton
Ontario Director, Canadian Taxpayers Federation
p: 416-573-5458
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