1. Part B: Ontario’s Budget

2. The Ontario Budget The Ontario Government’s fiscal year runs from April 1 to March 31. The upcoming provincial budget will project revenues and expenditures for the next fiscal period. It will likely be released at the end of March.

3. 2011-2012 Ontario Budget Projected Revenue = 108 billion (money in) Projected Expenditures = 124 billion (money out) Projected Deficit = - 16 billion (negative balance)

4. Ontario’s Debt In order to continue providing public services, Ontario has had to borrow money. This is called a debt. As the result of several consecutive deficits, Ontario’s current debt stands at $225 billion.

5. Interest on the Debt Interest is the amount charged by lenders to carry the debt. This figure continues to grow as the debt increases. Interest on the debt cost Ontario $10.3 billion last year and formed 8% of all expenditures.

6. Significance of the 2012-2013 Budget The government has acknowledged that these trends – a high deficit and a growing debt - cannot continue. The government has committed to balancing the budget by the 2017- 2018 fiscal year which will set the course for the next five budgets.

7. Discussion Are you surprised with the amount of Ontario’s debt? Should the government try to balance their budget before or after 2017- 2018? Does it matter?