Doug Ford's campaign and eventual entrance into office was definitely a rocky road for Ontario and an extremely divisive time for the province. While most people have calmed down, for the most part, Ford's choice of decisions was brought into serious question again by Ontarians earlier this month when he made one that will cost the province over $3 billion.
Unfortunately, it seems that a $3 billion dollar decision is the least of our worries when it comes to Ford's platform. In fact, if Ford was able to make good on all of his campaign promises, Ontario's deficit would grow to a whopping $18.7 billion by the end of next year. By 2022-23, Ontario's net debt could hit a whopping $483 billion.
If you're wondering how Ford would be able to do this much damage in such a short amount of time, a lot of it has to do with his pledges to cut both corporate and personal income taxes. That promise alone could cost the province $3.6 billion a year. His promise to reduce the current tax on gas would result in another $1.2 billion being lost per year, clearly, Ford's promises throughout his campaign were costly ones.
According to a report by TD Bank, the $18.7 billion dollar debt that Ontario could find itself in by the end of the year will be considered a 50% jump a year from now. On the other hand, the $483 billion dollar statistic that could become a reality as of 2022 to 2023 would amount to 48% of the province's annual income.
Unfortunately, with all of these large cuts and losses of income for the province, it's speculated that the province will see just as many cuts on projects and plans for Ontario in an attempt to balance the books. An example being the halt of many Ontario university expansion plans as well as cutting the pilot basic income program.
Unfortunately, Ontarians will have to wait until the province's Finance Minister, Victor Fedeli, releases an economic update come November 15th. The update comes as a response to an independent inquiry after the province's debts up until March 31st of this year had doubled the previous government's forecast. Though this is largely chalked up to accounting changes.
In reality, there's a slim chance that Ford is actually able to deliver on every single promise he made throughout his platform, so a $483 billion dollar debt probably won't be in our future.
Though that doesn't mean we won't be dealing with a large amount of debt in general in the next few years. Meaning we may want to pay a little more attention to cuts and promises as they clearly add up fast.
Source: Financial Post