Ontario’s fiscal watchdog says this year’s budget deficit is $12.3 billion — $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.“After four years of strong economic growth, Ontario’s budget deficit will more than triple this year to $12.3 billion in 2018-19,” Weltman said Monday at Queen’s 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 Wynne’s ‘free’ tuition scheme far more expensive than promised“The 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,” he said.Prior to the June 7 election, former premier Kathleen Wynne’s 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 Ontario’s cap-and-trade environmental alliance with Quebec and California, which brought in $1.9 billion to provincial coffers.In last month’s fall economic statement, Fedeli said the shortfall has ballooned to $14.5 billion. He did not include the value of the province’s $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 government’s figure, is the correct one. The difference is mainly due to the government’s lower forecast of tax revenue.Fedeli emphasized the government is building “prudence” into its fiscal planning.“As we have always said, and as the financial account ...
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