Canada ping
Ontario nearing bankruptcy under Dalton McGuinty
Ontario is in the worst financial shape in its history, and thanks to Dalton McGuinty there is no simple way out of this hole. Since taking office in 2003, Ontario’s spending has nearly doubled under McGuinty’s watch, climbing from $70-billion to over $120-billion today.
“If the Ontario government had to behave like a real business it would have declared bankruptcy by now,” says Peter Coleman President and CEO of the National Citizens Coalition. “There is no excuse for such reckless spending - eventually, someone has to pay the bills.”
It is Ontario’s taxpayers who are paying for this folly. With the provincial debt now past $220-billion, and with record setting year-over-year deficits the new norm, it is hard to see a silver lining for Ontario. “Major states in Europe and the rest of the world have declared bankruptcy this year and accepted financial bailout packages - Ontario needs to act now if we hope to avoid the same,” continues Coleman.
With Ontario now officially a ‘have-not’ province in Canada, we cannot rely on a robust economy and thriving manufacturing sector to drive growth and underwrite foolish spending. Ontario needs more than simple band-aid solutions, or nominal spending freezes - we need to reduce government spending immediately.
“The horse is already out of the barn,” comments Stephen Taylor, Director of the National Citizens Coalition. “This is not a potential problem, on the distant horizon - this is an urgent matter that needs attention now.”
Many Ontarians are wondering where all of this out-of-control spending has been directed, as services have not improved in the province. “After nearly doubling provincial spending in less than eight years, Ontarians’ lives have not improved, our economic situation has not improved and our access to services has flatlined. Where has this money gone?” asks Coleman.
It is time for Ontario to return to the fundamentals of economic management instead of looking for new ‘pet projects’ or ‘green’ initiatives to invest in.