November 24, 2011

Some departments face steep budget cuts: Ontario finance minister

TORONTO

Ontario will have to make a few cuts in order to reach a target of a $16 billion deficit in 2011-12, said Finance Minister Dwight Duncan in yesterday’s fall economic update.

But Ontario voters will have a say in which services should be reduced or eliminated.

Slower-than-expected growth means the province will take in $778 million less than it forecast in last spring's budget. Duncan told the legislature that over the last eight months, economists have lowered their expectations for Ontario’s growth by about 25 per cent for 2011 and 2012.

Gross domestic product is projected to grow at 2.0 per cent this year, down from 2.6 per cent forecast in the spring budget.

The government will consider a recommendation from economist Don Drummond to limit overall spending increases to one per cent a year until the deficit is eliminated by 2017-18, which will mean cuts in all areas but health care and education. Those cuts could be as high as 33 per cent in some ministries, Duncan admitted.

The goal is to have steadily declining deficits of $15.2 billion in 2012-13 and $13.3 billion in 2013-14, as outlined in the balanced budget plan.

DCN NEWS SERVICES

With files from the Canadian Press

Print | Comment