TORONTO - Ontario politicians aren't likely to see a pay raise if the federal government holds back on increasing salaries amid a sagging economy.

Premier Dalton McGuinty says the province is looking at holding off on future pay hikes for cabinet ministers and backbenchers because it's important to lead by example.

Federal Finance Minister Jim Flaherty is expected to clamp down on discretionary spending by politicians and top bureaucrats in his fiscal update this week.

McGuinty says restraining pay increases may be one of the ways in which the Liberals can offer savings "over and above" what they announced in last month's economic statement.

The Ontario Liberals came under fire last year for giving politicians a 25 per cent pay raise, arguing the legislature was losing talent to higher paying jobs in Ottawa or even in municipal politics.

McGuinty declined to provide details about what restraints the province is looking for and said cutbacks will be largely symbolic.

Still, he says, in hard economic times, it's important to show the government is being prudent with taxpayer money.