Thursday, July 03, 2008

Ontario Refuses Private Sector Calls for New Budget Forecast

In the last few weeks the CTF has been echoing private sector calls for new financial projections for Ontario. BMO Capital Markets, for example, says the province will be in recession and calls for all new government projections.

Today the McGuinty government issued its Q1 results. They admit that their forecasts were wrong about the economy but it won't re-forecast until sometime in the Fall. They predicted GDP growth of 1.1%. For Q1 it shrank by 0.3% Oil is now over $50 a barrel more than projected.

They say, "Updated information on the Province’s medium-term fiscal outlook, including the management of the fiscal plan in the face of slower-than-anticipated economic growth, will be provided in the 2008 Economic Outlook and Fiscal Review later this fall."

Meanwhile, spending continues to run amok while revenues decline. I guess the plan is 'if we ignore the problem, maybe it will just go away'.

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