Strong Action To Reduce Deficit Further
McGuinty Government's Proposed Changes to 2012 Budget Would Accelerate Plan to Balance the Budget
The Ontario government has updated its fiscal plan, showing further reductions to the Province's deficit. If passed, all revenue from the tax on Ontario's highest income earners would be used to eliminate the deficit even faster.
With these proposed changes, Ontario's deficit is now projected to be lower than originally forecast in the 2012 Budget. The government is projecting a deficit of $15 billion in 2011-12, down from $15.3 billion. In 2017-18, the year in which the budget was initially forecast to balance, the government is now projecting a $0.5 billion surplus.
These proposed changes include no net new spending and, as a result, the province's expense outlook remains unchanged from the 2012 Budget.
As a result of these actions, provincial debt, measured as the accumulated deficit, would be reduced by $3.5 billion by 2017-18.
- The government's March 27, 2012 Budget took strong action to eliminate the deficit while protecting the health and education services families rely on most. Balancing the budget is also essential for economic growth and job creation.
- Ontario's deficit in 2011-12 is now projected to be $15 billion, an improvement of $0.3 billion compared to the projection outlined in the 2012 Budget. The 2011-12 actual results will be presented in the 2011-12 Public Accounts, released later this year.
“The single most important thing we can do to grow the economy is to eliminate the deficit. A stronger economy leads to better schools and health care. In the context of this minority government, we have been able to move our Budget forward with no new spending - and in fact, we would be eliminating the deficit even faster.”