TORONTO - The governing Liberals won't revisit the need for the $2.6 billion health tax any earlier than 2009 despite additional cash from the federal government and a healthy financial outlook, Finance Minister Greg Sorbara said Monday.
The province handed over its books and financial estimates to the province's auditor for examination before the October election, detailing Ontario's financial situation through to 2010.
Ontario is getting an extra $200 million from Ottawa this year to help meet wait time guarantees and Sorbara is projecting total revenue will climb from $91.5 billion in 2008 to $97.8 billion in 2010, largely due to economic growth.
"I am relatively please with the state of the province's finances,'' said Sorbara, adding he's still not comfortable contemplating eliminating the health tax which will bring in $2.6 billion next year.
"We made a commitment to review the (health) premium at the end of 2009 and we'll stick to that.''
The province may still run a $400-million deficit at the end of next year depending on whether reserve funds are required, the government's pre-election report states.
Government expenses are also expected to climb from $91.2 billion next year to $96.2 billion in 2010, largely fuelled by spending increases in health, education and social services, the report states.
Despite the relatively healthy outlook, Sorbara said the province can't afford to eliminate the health tax as suggested by Conservative Leader John Tory.
"If that were to happen in year one, that would put us in serious financial straits and would require either a deficit or dramatic cuts to health care,'' Sorbara said.
Following legislation passed by the Liberals after they discovered the province was on the road to a $5.6 billion deficit following the 2003 election, the provincial government is required to provide a pre-election report to the auditor who will release a review on the numbers in June.
This transparency will force all parties to ensure the election promises they make match the province's fiscal reality, Sorbara said.
"What we have is a starting point,'' he said. "What we'll get is commentators and analysts asking political parties what the estimated cost of a particular proposal is . . . What we're really trying to do here is create a stronger democracy.''