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Is the Ontario government's "compensation freeze" crisis phony?

The Ontario government claimed in July that the first year of its so-called "compensation freeze" would save $1.4 billion.

It now claims  that last year's deficit was $3.3 billion less than budgeted.

This, the government says, will result in absolutely no change in their collective bargaining policy (or the threat of legislation).


Nevertheless, if the government's budget figures are to be taken seriously, it's apparent that there is no burning need to save $1.4 billion this year. They had saved that and more already.


The goal is political, not, it seems, economic.  

Moreover,  the government's fiscal reports seem more political than social scientific. This is just the latest in the consistent revisions downwards of the deficit estimates by the Liberal government over the last several years.

The government is still sticking to its claim that this year's deficit will be $14.8 billion.  That's a rather implausible $1.8 billion more than last year's deficit of $13 billion, despite continued economic growth.  Expect further revisions downwards.  

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