Ontarioâs fiscal watchdog says this yearâs budget deficit is $12.3 billion â $1.2 billion lower than Finance Minister Vic Fedeli has projected.But financial accountability officer Peter Weltman also warned huge shortfalls will continue into the future unless the Progressive Conservative government makes dramatic spending cuts or increases taxes.âAfter four years of strong economic growth, Ontarioâs budget deficit will more than triple this year to $12.3 billion in 2018-19,â Weltman said Monday at Queenâs Park.Read more:Tories scrap cap-and-trade plan in order to reduce gas pricesTories mum on why provincial controller quit after refusing to sign off on $15 billion deficitOntario Auditor General Report finds Wynneâs âfreeâ tuition scheme far more expensive than promisedâThe 2018-19 deficit will be the largest since 2011-12, the result of a significant increase in program spending combined with a decline in overall revenue,â he said.Prior to the June 7 election, former premier Kathleen Wynneâs Liberals announced some $5.7 billion in new spending and calculated a budget deficit of $6.7 billion for this year.After Premier Doug Ford took office, the new government cancelled Ontarioâs cap-and-trade environmental alliance with Quebec and California, which brought in $1.9 billion to provincial coffers.In last monthâs fall economic statement, Fedeli said the shortfall has ballooned to $14.5 billion. He did not include value of the provinceâs $1 billion reserve fund, which would have brought the deficit down to $13.5 billion.Weltman insisted his calculation, which is $1.2 billion lower than the governmentâs figure, is the correct one. The difference is mainly due to the governmentâs lower forecast of tax revenue.But as first disclosed by the Star last week, the provinceâs controller, Cindy Veinot, quit after refusing to sign off on the treasurerâs versio ...
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