Financial Accountability Office warns of continued budget deficits in Ontario

Ontario’s government spending watchdog says the Liberals are relying on optimistic economic assumptions to meet their deficit elimination target next year.

The Financial Accountability Office (FAO) says the government’s revenue projection is 2.8-billion dollars higher than its estimate for 2016-17, and 5.2-billion higher by 2018-19.

It says that means there is “significant risk” the Liberals will not be able to eliminate the 4.3-billion dollar deficit next year as promised.

The FAO says the government has a variety of tools it could use to temporarily balance the books – but says additional measures such as new or increased taxes or spending cuts would be needed to keep the province from quickly slipping back into the red.

The Canadian Press

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