Ontario : Liberals refuse to confirm report Ontario to run near $1-billion deficit

[ErickMontreal]

Liberals refuse to confirm report Ontario to run near $1-billion deficit

Wed, 2008-10-22 13:04.

 

By: THE CANADIAN PRESS

 

TORONTO - The Ontario government refused to confirm Wednesday in advance of handing down its fall economic update that the province will run a deficit of almost $1 billion this year because of the world financial crisis.

 

For the past two weeks, Premier Dalton McGuinty has signalled he is prepared to run a deficit because of declining government revenues. In the legislature, Opposition Leader Bob Runciman wanted to know how Ontario went from a balanced budget four weeks ago to what he said was an expected deficit of $1 billion.

 

"Less than a month ago, (Finance Minister Dwight Duncan) said the budget would be balanced, even with a downturn in the U.S. economy," Runciman said.

 

"Premier, how is it that just four short weeks ago the budget was balanced, but today there's going to be a deficit of almost $1 billion?"

 

McGuinty told the house he didn't know where Runciman was getting his numbers.

 

People would have to wait until the finance minister delivers the fall economic update later Wednesday to see what red ink exists, McGuinty said.

 

"We're in a pretty good position now to withstand these powerful winds that are blowing out there," he said.

 

But, McGuinty added, the government also has to find a way to "make advances on the poverty front, to act in a way that is fiscally responsible, to protect health care and to protect education."

 

On Monday, McGuinty said he told Duncan not to run a deficit unless not doing so would mean cutting back on public services. He also vowed that Ontario would not close hospitals or cancel infrastructure programs after more than 200,000 people lost their jobs.

 

On Tuesday, he warned schools, cities and hospitals that funding projections would have to be scaled back during challenging times that may last as long as two years.

 

Government officials will say only that Duncan's statement will outline which new government programs will have to be delayed because of falling revenues.

 

Anti-poverty activists are worried that will mean the government will fail to keep its promise to help the poorest of the poor improve their living standards.