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Showing posts from February, 2017

Ontario government spending grows. But the deficit falls like a stone

Yesterday’s third quarter report from the Ministry of F inance indicates that their estimate of the deficit for 2016/17 fiscal year has fallen by $2.4 billion -- from $4.3 billion to $1.9 billion. This despite the announcement of another $223 million in new spending increases for 2016/17.  If you recall, the government announced even more in-year spending increases in the fall for Hydro rebates and hospitals.   Since the 2016/17 Budget, they have now increased program spending about $ 1.1 billion through in-year increases .  That is an in-year increase in program spending of 0.9 2 %.   This is quite unusual for a government that typically under-spends their budget.   The new increased expenditures announced yesterday are mostly on a specific hospital based service and drugs: ·     Ontario Drug Benefit Program: an additional $106.0 million to address funding requirements for the Ontario Drug Benefit program. ·     Malignant Hematology including Ste

The end of provincial public sector austerity in Ontario?

The experts appointed to review the claim by the Auditor General that the surpluses in the teacher and civil servant pension plans cannot be counted as government  assets have reported .   Importantly they have sided with the government and against the Auditor General, Bonnie Lysyk. Lysyk's pension surplus accounting policy required the government to add $10 billion to the provincial debt and $1.5 billion to the deficit last fall. Only then did she  approve the final provincial government books for 2015-16 (the Public Accounts).   The government estimates this policy would add $2.2 billion to the deficit this fiscal year (2016-17).   Indeed, a ccording to the Finance Ministry's Fall Economic Statement t he extra program expense associated with this policy is increasing at a rate of $600 to $900 million per year through until at least 2018-19.   The Minis try of Finance reports that this policy would add $2.8 billion   in program expense in 2017/18 and $3.7 billi