Getting Serious about Deficits
Yes, Ontario has a deficit problem. But it’s not just a budgetary deficit…
Ontario has multiple deficits:
· A budgetary deficit, slated to drop to $15.2 billion or 2.3 per cent of GDP in the coming fiscal year, down from $19.3 billion or 3.3 per cent of GDP in 2009-10. The deficit is manageable, particularly when interest rates are low, but the projected debt-to-GDP ratio of 39.5 per cent for 2012-13 must be addressed.
· This arose due to the deep recession of 2008-09:
· Tax revenues naturally fell.