TD Bank is warning about the massive deficit leftover from the Wynne Liberals in Ontario.
The Ford Conservatives inherited a province with the largest sub-national debt in the world, and the deficits claimed by the Wynne Liberals turned out to be far worse than expected.
TD economists said “The upcoming fiscal update will provide a huge opportunity for the government to signal how it plans to slay the deficit monster. From a credibility perspective, the sooner the government gets its fiscal house in order, the better.”
Added TD, “If the government plans to honor its campaign promises, program spending will have to be pared significantly. Should the economy take a turn for the worse, the government’s job becomes exponentially harder. All told, the path to balance will be fraught with hard decisions.”
Ford has made pledges that would both add to and reduce the deficit, with a mix of tax cuts and spending restraint. However, Ford’s government differs from the Liberals in that he will put more money in consumers pockets and make it easier for businesses to grow, hire, and attract investment, all of which can grow the economy and bring in more government revenue without the need for higher rates.
Danger of Liberal spending
This shows the danger of Liberal governments being in power. The deficit surged massively under the Ontario Liberals, bringing the province into an incredibly dangerous fiscal position. We see the same thing now nationally with the Trudeau Liberals.
Even without a global recession, and even with a booming economy in the United States, the Trudeau Liberals are running huge deficits and putting Canada at increased risk.