TORONTO - Premier Dalton McGuinty says Ontario must cap spending hikes at one per cent a year and can't afford "reckless" tax cuts proposed by the Opposition.
Don Drummond, former chief economist of the T-D Bank, says Ontario must have very modest spending increases until the 16 (b) billion dollar deficit is gone in 2017-18.
McGuinty says that's going to mean all three parties have to be more co-operative and focus on jobs, the economy and deficit reduction.
He says the Tories and New Democrats will have to curb their demands for unaffordable tax cuts and outrageous spending increases.
The Progressive Conservatives say it was wild spending by the Liberals that doubled the province's debt, drove up the deficit and hurt the economy.
Drummond's full report on reforming the Ontario public service and deciding which businesses the government should get out of is due early in the new year.
