Politics

Ontario can balance its budget this year by reducing spending by 4.8 per cent to 2015/16 levels


TORONTO—The Ontario authorities might steadiness the province’s price range this fiscal yr if it reduces program spending to ranges maintained by the earlier authorities in 2015/16, finds a brand new research launched as we speak by the Fraser Institute, an impartial, non-partisan Canadian public coverage think-tank.

“The current Ontario government—when it was in opposition—was highly critical of the previous government’s spending levels but, actually, has increased spending further since taking office. In fact, Ontario could balance its budget this spring by lowering its spending to those it inherited,” mentioned Ben Eisen, senior fellow on the Fraser Institute and co-author of Studying from Ontario’s Previous: How Ontario Can Keep away from One other Submit-Recession Debt Binge.

Inflation-adjusted per-person program spending has grown from $7,666 in 2000/01 to $11,860 in 2020/21—a rise of 54.7 per cent.

Based mostly on current projections, the provincial authorities would want to cut back annual spending by $9.1 billion from its 2021/22 degree to steadiness the price range in 2022/23—a 4.8 per cent lower.

Such a discount would nonetheless depart per-person spending (adjusted for inflation) greater than it was in fiscal yr 2015/16.

The research paperwork how the province has did not restrain spending—and added debt—within the years following two earlier recessions within the early Nineties and late 2000s.

“Successive Ontario governments have followed similar patterns following recessions—they failed to reduce per person program spending (adjusted for inflation) resulting in consistent deficits and debt accumulation,” Eisen mentioned.

“Following the COVID-19 recession, the sitting Ontario government has a choice to make: repeat the mistakes of the past and allow debt to continue to grow or it can eliminate the deficit quickly by reducing spending.”

Media Contact:
• Ben Eisen, Senior Fellow, Fraser Institute
• Steve Lafleur, Senior Coverage Analyst, Fraser Institute

To rearrange media interviews or for extra info, please contact:
Drue MacPherson, Fraser Institute
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Fraser Institute — Bio and Archives

The Fraser Institute is an impartial Canadian public coverage analysis and academic group with places of work in Vancouver, Calgary, Toronto, and Montreal and ties to a worldwide community of 86 think-tanks. Its mission is to measure, research, and talk the impression of aggressive markets and authorities intervention on the welfare of people. To guard the Institute’s independence, it doesn’t settle for grants from governments or contracts for analysis. Go to fraserinstitute.org.

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