$24.7 B – how did things get so bad so fast?

It’s official – Canada’s worst government is now running Canada’s worst deficit. In the wake of the billion dollar eHealth scandal, the McGuinty government has announced that Ontario’s 2009/2010 deficit may ring in at a record $24.7 billion.

Last year Mr. McGuinty projected a half billion dollar deficit, but in March it skyrocketed to $14.1 billion. Now we hear $14 billion will almost double to $24.7. The McGuinty government’s addition to the debt will now stand at $65.2 billion bringing the total projected debt to $213.2 billion. Dalton’s debt translates into $13,500 on the backs of every single household in our great province, a massive new burden on families whose household finances are already stretched to the limit.

How could things get so bad so fast?

Quite simply, this government taxed and spent during the boom times and saved nothing for a rainy day, Even a squirrel is smart enough to save nuts for the lean times – this government lacks the foresight of a rodent.

It was this government that imposed the so-called health tax, the largest income tax hike in Ontario's history, and are now planning to one-up themselves with the largest sales tax grab in the history of our province. As well, in its first year, the McGuinty regime jacked up business taxes -- taxes that killed jobs and crippled Ontario's competitive advantage.

How can a government, which imposed new taxes so rapidly and so regularly, still manage to squander this revenue and amass the most debt in Ontario's history? 

The truth is Mr. McGuinty remains hard-wired to higher taxes and higher spending. In just six years, this government upped spending 60 per cent when the economy only grew by seven per cent. While middle-class families are paying higher income taxes, higher fees, higher auto insurance premiums and higher electricity bills, this government is living high on the hog.

Mr. McGuinty does not have a revenue problem, Mr. McGuinty has a spending problem.

In last week’s Fall Economic Statement, Finance Minister Duncan warned that the government’s $24.7 billion deficit will result in a Treasury Board review of services. Earlier in the week, at a joint meeting of the Empire and Canadian Clubs, Duncan admitted the deficit will mean, “difficult choices” for Ontario.

So in the same month that we hear of the extent of the billion dollar e-Health scandal, and McGuinty’s million dollar a day addiction to consultant fees, we now hear the finance minister calling for a leaner and meaner government. That comes as cold comfort to those who have already lost their jobs, lost their government training programs, or are losing their hospital emergency rooms. McGuinty’s stampede to belt tightening will be far too little, far too late.

Middle class families are forced to work longer and harder than ever, just to keep their heads above water, all the while, well-connected government-friendly consultants and insiders are getting rich on hundreds of millions of dollars worth of untendered contracts and sweetheart deals. Middle class families are seeing no results for their hard work beyond higher taxes and more of ‘Dalton’s Debt’.

Clearly the McGuinty government has lost touch with the fact that government dollars are taxpayer dollars. And from what we read in this Fall Economic Statement, Mr. McGuinty now makes Bob Rae look like a fiscal conservative.