My latest on Ontario's public finances...
Ontario has wrapped up its 2018 pre-budget public consultations as it
prepares to deliver its next provincial budget. Ontario Finance
Minister Charles Sousa confirmed in the fall fiscal statement that
Ontario’s 2018 budget will be balanced, as will budgets over the next
two years. However, the average Ontarian may be confused by the
fact that despite a future of projected balanced budgets, the provincial
net debt will continue to increase.
Indeed, recent years have
seen the provincial debt grow by amounts exceeding that year’s deficit.
For example, in fiscal year 2014-15, Ontario’s budgetary deficit was
$10.315 billion but the net debt rose by $17.386 billion. In 2015-16,
the deficit was $3.515 billion but $10.796 billion was added to the net
debt. In 2016-17, the deficit was $0.991 billion but $6.276 billion was
added to the net debt.
So how can this happen? See here for the rest of the post on the Fraser Blog...