Tories to tackle debt after report shows rise in spending

TORONTO — Ontario’s Progressive Conservatives vowed to address the province’s ballooning debt and deficit after a review of government finances found spending had grown dramatically under the previous Liberal regime over the last 15 years.

The line-by-line review released Tuesday was commissioned this summer and conducted by accounting firm EY Canada, which suggested finding savings through moves that included monetizing some assets and creating a “digital first” approach to government.

Treasury Board President Peter Bethlenfalvy said the review, combined with an independent commission of inquiry that last week found the province was facing a $15-billion deficit, will help the government chart a course back to balanced budgets.

“Faced with this challenge it would be irresponsible not to act,” he said. “With each passing day the shadow of these Liberal deficits will only grow.”

EY’s report found Ontario’s operating expenses grew by 55 per cent over 15 years. It also highlighted that the province’s debt stands at $331 billion, a jump from the $158 billion in 2003. The province now spends $12.6 billion a year on interest payments.

Bethlenfalvy stressed that the report is not a “blueprint for cuts,” as many critics have feared. The government will instead modernize services and retrain some civil servants to avoid job loss, he said.

“Our government has set a clear goal for ourselves,” he said. “We will return Ontario to balance on a timetable that is modest, reasonable, responsible and pragmatic.”

The EY review noted that its ideas to improve the province’s financial health weren’t new, but suggested that some action was needed.

“In light of the evidence around expenditures and their disconnect from results and outcomes, it is clear that taking decisive action is the only way forward to put Ontario on a sustainable fiscal footing,” it said.

The province also conducted online surveys where people could weigh in on how to make government programs more efficient.

NDP deputy leader Sara Singh said the review suggests the government is preparing to cut and privatize public assets.

“What the report is telling us ... is this government is committed to making deep cuts,” she said. “We’re not sure where those cuts are going to be ... but I think they’re really setting the stage to make those cuts.”

The results of the review were announced a day after Ford revealed plans for a special committee to dig further into the province’s fiscal situation, while slamming his predecessor’s handling of Ontario’s books.