decline

Editorial Cartoon by Graeme MacKay, Editorial Cartoonist, The Hamilton Spectator – Thursday October 23, 2008

Ontario to fall $500M in the red

Ontario will run a deficit of $500 million this year rather than make steep spending cuts to cope with an uncertain economic future, Finance Minister Dwight Duncan said Wednesday.

He also downgraded economic growth to 0.1 per cent instead of the projected 1.1 per cent for the fiscal year 2008-2009.

“We are in the midst of a global economic crisis not imagined a few short weeks ago. It is spilling over into the real economy impacting Ontario families and businesses,” Duncan said at the legislature while delivering his fall economic outlook.

“For that, the McGuinty government is equipped, prepared and determined to get through the challenging economic times.”

The Liberals decided to protect health care and education funding and chose to run a deficit, Duncan told the legislature, adding it was a balanced response to challenging economic times.

Duncan also said Wednesday that the hiring of some 9,000 new nurses and 50 family health teams pledged in the March budget would be delayed.

“The McGuinty government will continue to implement its agenda, in a responsible and prudent manner, given the challenging economic environment,” Duncan said. “A deficit, followed by a plan for its elimination, represents a balanced response to today’s global reality.” (Source: CBC News)