Tag Archives: Ontario provincial deficit

Reality checks in – austerity plan based on exaggerated deficits

In February we attended a forum hosted by the Centre for Policy Alternatives looking at the manufactured crisis the Liberals are using to bring in a far-reaching austerity agenda.

At the time, we noted that Finance Minister Dwight Duncan has a consistent history of grossly exaggerating the forecast deficit. In 2010-11 Duncan was off by 43 per cent with his forecast. Progressive economists were forecasting the actual deficit for 2011-12 would not be $16.3 billion, but come in closer to $12 billion.

They weren’t far off.

There was little attention last Thursday when Finance Minister Dwight Duncan revealed last year’s deficit was in fact $3.3 billion lower than forecast, coming in at $13 billion.

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