The Ontario Liberals presented their 3rd quarter financial results yesterday, and MPP Vic Fedeli congratulated them for it. It was the second time they’ve presented those results in nine years, despite a law that requires the government to present this annually.
Fedeli brought this continual breaking of the law to the attention of the public last week, guilting the government into finally coming clean with the provinces finances. Fedeli says they confirmed yesterday that the government will attempt to artificially balance the budget by using reserves and the one-time sale of assets.
He says thanks to $500 million more in unplanned revenue from the Land Transfer Tax, they hope to balance the budget on the backs of Ontario’s families. In addition, contrary to the ruling from the Auditor General, the government is adding the surplus pension funds as an asset.
While the government chooses to paint one picture, Fedeli offered these facts about Ontario’s finances:
Ontario Chamber of Commerce’s Ontario Economic Report, February 2017
- Only 24% of businesses have confidence in the province’s economy. Since Premier Kathleen Wynne first took office in 2013, business confidence in the provincial economy has been cut in half from 48%
Ontario’s Long-Term Report on the Economy, February 2017
- The Report predicts a drop in average growth rate for Ontario’s GDP, Final Consumption Expenditure, Private Sector Capital Stocks, Exports, Imports, and Labour Participation Rate; declining performance in all of Ontario’s major economic indicators
- The current structure of Ontario’s economy will continue to shift from good-paying manufacturing jobs to more part-time and temporary employment
Ontario’s Economic Accounts, January 2017
- Business investment decreased by 0.8% (including a 6% drop in machinery and equipment investment)
- Foreign direct investment decreased from $7B to $4B
The fDi Annual Report, 2016
- Ontario is no longer the #1 in foreign direct investment in North America; fell to #4.
- Foreign investment in Ontario dropped this past year, from $7 billion to $4 billion. Ontario’s market share has been cut in half from 12% in 2015 to just 6 per cent this year
FAO’s Economic and Fiscal Outlook, November 2016
- Forecasted a deficit of $2.6B in 2017/18 and $3.7B by 2020/21
- Net debt is $307B and expected to rise by $64B and surpass $370B in the next 5 years
- Interest payments are approaching $12B a year
- Net debt-to-GDP ratio projected to grow to 41%. It was 27% when the Liberals took office
Fall Economic Statement, November 2016
- Contingency reserves reduced by $600M
- $800M obtained through one-time sale of assets
FAO’s Commentary, November 2016
- Projected budget deficits $5.2B in 2016/17, $2.6B in 2017/18
- Government projecting higher revenues than the FAO—$2.8 higher in 2016/17 and $5.2B higher by 2018/19
- Government forecasts higher income tax by more than $1B
- FES assumes $13.B in federal transfers and $1.9B in cap-and-trade proceeds by 2017/18
Freedom of Information Inquiries
- $308M spent on abandoned OLG initiative. Resulted in a cut of $107M from OLG hospital transfers
- $300M loss through hydro-related missteps
- $70M for the improvement of hunting and fishing not used for either
- Auto insurance rates increase 1.5% in 3rdquarter
- Metrolinx is $22M over their 2012 estimated budget of $255M
- Government sells LCBO lands for $246M
Unaudited Annual Report (Public Accounts), September 2016
- Year-over-year government spending rose by $4.6B (3.5%), from $128M to $133.4B
- $2B added to government revenue from the sale of Hydro One
- $2.74 billion in revenue from service fees in 2016-17, a 38.7% increase from 2011-12
- Net debt grew by $20.6B during the year
Financial Accountability Officer’s Ontario Business Investment Expected to Edge Lower in 2016, May 2016
- Private investment is set to decline 0.7% in 2016, with an 8% drop projected for manufacturing sector
