Premier and Minister Sousa
The Ontario government is targeting education and healthcare as it tries to turn its ship toward reduced spending. The pressure is on to find a balanced budget by 2017-2018. The plans have the potential see to teacher and nurses on strike. Ontario accounts for about 40 percent of the country’s economy and is projected to run a deficit of C$8.5 billion ($7 billion) in the 2015-2016 fiscal year. This year’s shortfall had been projected at C$8.9 billion, with lower tax revenues offset by asset sales, including the planned sale of 60 percent of Hydro One, the province’s electricity transmission utility. The deficit for last year is estimated at C$10.9 billion. Ontario’s net debt is estimated at C$298.9 billion this fiscal year, the largest debt in the world not held by a national entity. Credit rating agencies have warned Ontario to get its fiscal house in order or risk downgrades to its rating, a move signalling even more expensive carrying costs. Critics and financial experts are doubtful about the Liberal’s ability to make the target. The government was defeated on its budget in 2014 but went on the win a surprise majority government. It promised to carry on with his programs. The Finance Minister, Mr. Sousa, has vowed to hold the line against wage increases for public-sector workers, risking standoffs with organized labor, including teachers, who are set for regional strikes if new collective agreements cannot be reached. In outlining the government’s plan to build C$130 billion in infrastructure over 10 years, the minister said transportation congestion has cost revenue and growth. Mayor Tory commented on the budget and noted that there is 8.2 billion budgeted to electrify GO lines, an essential element of his Sm art Track plan.
