Toronto--The only way the Ontario government can avoid a budget deficit in 2001-02 is to suspend the implementation of further tax cuts.
That's the conclusion of a study prepared for the Ontario Alternative Budget project by CCPA Senior Research Associate Hugh Mackenzie, who is also Research Director for the Steelworkers.
Taxes and tax cuts
This report finds that the only way the Ontario government can avoid a budget deficit in 2001-02 is to suspend the implementation of further tax cuts. Contrary to the government's claim, Ontario does not have a spending crisis. Instead it has a revenue crisis--one created by the government's own policies.
In its annual pre-budget analysis, the Ontario Alternative Budget Working Group has a simple message for the Harris Government: "Park the ideology and call off the dogs. Put the corporate tax cuts on hold. And put a stop to the attacks on education, health care, public infrastructure and the homeless."
In a study released today the Ontario Alternative Budget says that the Harris Government's tax cuts are the sole reason why Ontario is facing a revenue crisis.
The study documents that the Ontario fall economic statement "misrepresents the current state of Ontario's economy. It misrepresents our near-term economic prospects. It misrepresents the governments's fiscal position. It misrepresents the reasons for Ontario's tightening fiscal circumstances."
A report from the Ontario Alternative Budget Working Group released today challenges the key assumption underlying the Eves Government's claim that the province is on the brink of another fiscal crisis.
The report analyzes the state of Ontario's budget for 2002-3 in light of the oft-repeated claim that the province faces a budget shortfall or "problem" of between $3 billion and $5 billion in fiscal year 2002-3.
It shows that, based on the Governments own current projections, the Conservatives can anticipate a budget surplus of $600 million for 2002-3.
TORONTO--Ontario's economic recovery gives Premier Ernie Eves and his Finance Minister Janet Ecker the fiscal room to make good on the Throne Speech promises of public services improvements, Ontario Alternative Budget Working Group Co-Chair says.
In the OAB's annual pre-budget fiscal update, Hugh Mackenzie estimates that, based on recent provincial forecast updates by Canada's five largest chartered banks, Ontario can increase public services spending by $2 billion in 2002-3 without risk of a deficit.