Working with Government

Reduce our debt-to-GDP ratio to its pre-recession level of 27 per cent

Ontario Liberal Plan June 14, 2014
Nov 2017

the net debt is projected to increase before the 2017/2018

Financial post November 16, 2017

Finance Minister Charles Sousa stated that the deficit has been reduced from $7.5 billion projected to $5.7 billion; this deficit had incurred toward the end of 2015 . This reduction has been attributed to the economic growth in Ontario; leading to increase in revenue. The economic growth in Ontario in 2015 was 2.5 compared the projected national economic growth of 1.2 . The other government revenues were $1.1 billion from the sale of Hydro One, the federal government that contributed $24.6-billion in 2016 and forecast to increase the money to $26.6-billion by 2018.

However, the net debt is projected to increase before the 2017/2018 budget due to the borrowing by Ontario government for projects such as infrastructure projects that cost about $160 billion over the next 12 years. Economic experts predicts that the net debt will increase from $296.1 billion in 2015-16 to $326.8 billion in 2018-19. even as the Liberals are set to have a balanced budget by then. Moreover, Moody’s Investors Service have asserted that the borrowing will have a negative effect on bond, consequently affecting the net debt as well. Net debt for Ontario is currently (2017) projected to be $312 billion which indicates that debt in Ontario has tripled since the Liberal took power in 2003. Due to Net debt of (37.5 per cent) could be reduced to pre-recession levels (27 per cent) in 12 years—by 2029/30.