Thursday, February 7, 2013

Ontario's Finances as Minister resigns

On Twitter reports are that retiring Ontario Finance Minister Dwight Duncan is deflecting questions of Ontario's record debt levels by noting record federal debt levels.
I suggest the data shows Ontario, and provinces in general, are adding debt quicker than the federal government; Ontario's share of all provincial debt hasn't moved much for 8 years (Ontario performed poorly during the early McGuinty years when Greg Sorbara was finance minister), but the Ontario debt is a much higher percentage of the federal debt over the same time.  That trend actually goes back to the end of the Peterson era in 1990-91.


1 comment:

  1. It isn't that odd. It's what you'd expect to happen if you consistently have low tax rates compared to other provinces. If Ontario increased its taxes, and Ottawa continues its policy of lower taxes, then the trend will reverse (Ottawa's debt will grow faster than Ontario's and other Provinces).