Ontario’s excess of expenditure over revenue was down to $1.9 billion during this year’s fiscal year mainly as a result of higher tax revenues, high home prices and the government making use of the province’s reserve.
In last year’s budget, the provincial government estimated a $4.3 billion and this low figure makes it possible for the government to bring forward a budget balance and surplus.
On Tuesday, the Finance Minister Charles Sousa announced the province’s third-quarter funds highlighting an increase in Ontario’s real GDP of 0.7% which was contributed by business exports, consumer expenditure and real estate investments.
He went on to add that the all these positive contributions towards Ontario’s economy puts the province forward in its financial activities.
However, rising interest could hinder the economic growth of the province even though Ontario is expecting a real GDP increase of 2.2% by the end of 2017.
Andrea Horwath NDP Leader stated that Canadians do not accept the Liberal government’s claim on “beating” their own deficit expectation.
It’s a known fact that the Liberals make abnormal increases on their deficit projection and when the time draws near for the budget to be announced they acquire more than what they had expect to get. “It’s a silly shell game.”
Furthermore, the finances also reveal that the government also made use of $600 million from the previous $1 billion reserve.
But according to Progressive Conservative critic Vic Fedeli, the government making use of the reserve does not take away the fact that the province still has a deficit. Instead “the government will attempt to artificially balance.”
A government spokeswoman responded to this statement saying the government establishes the reserve to cater for unforeseen revenue changes and expenditures and the government is still maintaining the 40% reserve that was announced in the 2016 Fall Economic Statement.