Ontario unlikely to balance budget by 2030 despite post-pandemic growth: report
Ontario's fiscal watchdog says the province's economy will rebound over the next two years but the government is unlikely to reach its goal of a balanced budget by the start of the next decade.
The Financial Accountability Office released a report on the province's spring economic and budget outlook today, assessing the financial picture as the province starts to emerge from the pandemic.
If COVID-19 vaccine distribution goes ahead as planned and the pandemic subsides, the report projects real gross domestic product will rise by 5.8 per cent this year and four per cent next year.
But the FAO said economic growth could be slower if public health measures and vaccinations fail to contain a resurgence of the virus.
"The path to economic recovery in 2021 depends heavily on the success of the federal and provincial governments' plans for the COVID-19 vaccine distribution," the report said.
"There are challenges related to the rise of variant COVID-19 cases, noncompliance with public health guidelines and vaccine hesitancy."
The report also found that under current policies, the Progressive Conservative government won't balance its books by 2029-2030 as proposed in this year's budget.
The FAO said the budget didn't provide details on how the province would achieve the required $17.8 billion in permanent cost savings to reach that goal.
"To achieve its recovery plan, the government would have to introduce new program changes that lower spending by $1,281 per Ontarian by 2029--30 in 2020 dollars," the report said.
Financial Accountability Officer Peter Weltman said his office chose to look at that lengthy timeline based the government's own targets, and noted that a "lot can change" between now and 2030.
"As long as program spending exceeds revenues, the budget will never get back to balance, but we can't obviously look that far out," he said.
The report also flagged that future revenue forecast in the budget is lower than the government's economic outlook, suggesting possible unannounced tax cuts in the future.
NDP Leader Andrea Horwath said it's "alarming" that $17.8 billion in cuts would be required to get to the balanced budget goal. She said people will need services in the coming years to recover from the pandemic.
"This is a warning siren: more big cuts and bad choices are on the way," she said.
"Everyday families will pay the price for (Premier Doug Ford)'s slash-and-burn agenda. You can't cut $17.8-billion without hurting them deeply.""
This report by The Canadian Press was first published June 10, 2021.
CTVNews.ca Top Stories
Young people 'tortured' if stolen vehicle operations fail, Montreal police tell MPs
One day after a Montreal police officer fired gunshots at a suspect in a stolen vehicle, senior officers were telling parliamentarians that organized crime groups are recruiting people as young as 15 in the city to steal cars so that they can be shipped overseas.
'It was joy': Trapped B.C. orca calf eats seal meat, putting rescue on hold
A rescue operation for an orca calf trapped in a remote tidal lagoon off Vancouver Island has been put on hold after it started eating seal meat thrown in the water for what is believed to be the first time.
Man sets self on fire outside New York court where Trump trial underway
A man set himself on fire on Friday outside the New York courthouse where Donald Trump's historic hush-money trial was taking place as jury selection wrapped up, but officials said he did not appear to have been targeting Trump.
Sask. father found guilty of withholding daughter to prevent her from getting COVID-19 vaccine
Michael Gordon Jackson, a Saskatchewan man accused of abducting his daughter to prevent her from getting a COVID-19 vaccine, has been found guilty for contravention of a custody order.
Mandisa, Grammy award-winning 'American Idol' alum, dead at 47
Soulful gospel artist Mandisa, a Grammy-winning singer who got her start as a contestant on 'American Idol' in 2006, has died, according to a statement on her verified social media. She was 47.
She set out to find a husband in a year. Then she matched with a guy on a dating app on the other side of the world
Scottish comedian Samantha Hannah was working on a comedy show about finding a husband when Toby Hunter came into her life. What happened next surprised them both.
B.C. judge orders shared dog custody for exes who both 'clearly love Stella'
In a first-of-its-kind ruling, a B.C. judge has awarded a former couple joint custody of their dog.
Saskatoon police to search landfill for remains of woman missing since 2020
Saskatoon police say they will begin searching the city’s landfill for the remains of Mackenzie Lee Trottier, who has been missing for more than three years.
Shivering for health: The myths and truths of ice baths explained
In a climate of social media-endorsed wellness rituals, plunging into cold water has promised to aid muscle recovery, enhance mental health and support immune system function. But the evidence of such benefits sits on thin ice, according to researchers.