Ontario Deficit Lower than Expected

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March 25, 2010

Mind the gap by Pawel Loj

Dwight Duncan, the finance minister of Ontario yesterday, at a news conference in Toronto announced that the province’s budget deficit for the 2009/2010 fiscal year (ending on March 31st) is going to be 14 percent lower than expected – that is, $21.3 billion instead of predicted $24.7 billion. Still, this is the largest deficit in the history of Ontario.

According to Duncan, the reasons of the 14 percent decline were higher revenue collection and cuts in spending. The economy in the province was doing well towards the end of last year, really. “Better than expected economic growth as well as prudent planning of contingency and reserve funds” importantly contributed to the lower deficit too, Duncan claims.

Not everyone seems to be happy about the situation, though. As Conservative Tim Hudak said , “o nly Dalton McGuinty’s Liberals would say that a $21 billion deficit is some kind of accomplishment.” Well, such deficit really is not something to be proud of, is it? But it is not about political ideologies – I honestly think if it were Conservatives in the government, they would be pleased too, if the budget deficit was lower than expected.