Ontario Finance Minister Greg Sorbara says it will take the provincial government four years to eliminate the budget deficit left behind by the Progressive Conservatives. [ view chart ]
The governing Liberals said the province is expected to post a $6.2 billion deficit for the fiscal year that ended on March 31. The government said it will take until the 2007-08 budget year for the provincial budget to get back to break-even.
The Liberals expect annual deficits of
- $2.2 billion in 2004-05
- $2.1 billion in 2005-06
- $1.5 billion in 2006-07
"The government of Ontario must balance its books," Sorbara said in his budget address.
"However, trying to force a balanced budget in the short term would require deeper spending cuts that would threaten necessary public services."
With Ontario running a deficit, the province's total debt will continue to grow, rising to:
- $142.4 billion for the current fiscal year
- $145.4 billion in 2005-06
- $147.9 billion in 2006-07
- $148.7 billion in 2007-08.
Meanwhile, the annual cost of paying for that rising debt is also going up. The interest paid on debt this year will total $10.3 billion, a figure that's forecast to rise to $11.5 billion by 2007-08.
Overview > Debt and Deficit 
