QUEEN’S PARK (March 27, 2012) – Tuesday’s surprisingly weak budget fails to make the structural changes necessary to the way government operates and spends to avoid a $30 billion deficit, and throws up barriers to private sector job creation – so it cannot be supported, Ontario PC Leader Tim Hudak said today.
“This is the time for tough and responsible fiscal management,” Hudak said. “Yet today’s budget is a weak and disappointing response to Ontario’s jobs and spending crisis.
“In fact, it actually puts up roadblocks to the very economic growth its assumptions are pinned on.”
In particular, Hudak cited the cancellation of business tax cuts: “At just the time we need to be making Ontario more competitive and restoring business confidence to create jobs, Dalton McGuinty is taking $1.5 billion out of the economy over the next three years to pay for his over-spending.”
Other troubling budget content includes:
- A deficit now three times the size of all other provinces combined
- A 2011 deficit that actually increased over the previous year – and doesn’t decrease for another year
- Spending increases in 14 out of 24 Ministries
- A complete lack of a jobs plan except for yet another advisory body, and
- No concrete action on the cost of public sector compensation – just more consultations
Hudak said it all shows that the Premier does not grasp the seriousness of Ontario’s situation – having failed to move off the path toward a $30 billion deficit with his uncontrolled spending: “Instead he has made long-term commitments to pet projects with no way to pay for them, while grabbing for short-term revenues through one-off asset sales and fee increases.”
As a result, Hudak said, the Premier has simply “kicked the can down the road again” despite a looming $30 billion deficit.
Hudak noted that months ago, he set out a “stress test” to provide principled opposition with clear criteria for judging everything the government does, adding the budget fails all three:
It does far too little to reduce the size and cost of government through long-term, structural change to the way government operates and spends
The budget works against contributing to private sector job creation with higher taxes on businesses that will further erode confidence in Ontario as a place to invest and create jobs, and
Because it does nothing to rein in runaway spending, the budget fails to ensure value for money and accountability for taxpayers
“There is no need for Ontario to be condemned to a $30 billion deficit and continued stagnant economic growth,” Hudak said. “That’s why I will continue to promote our positive Ontario PC plan to get our economic fundamentals back in shape, as I have been doing every day since the last election.”
