This presentation will look at 13+ years of governments led by Mike Harris (PC) as well as Liberals (Kathleen Wynne and Dalton McGuinty) Ontario debt has double since 2003 and yet we have seen a deterioration in terms of the quality of services as well as the economy.

1. Progressive Conservative –vs
Liberal Government for
Ontario
BY: PAUL YOUNG, CPA, CGA
DATE – NOVEMBER 19, 2016

2. Agenda
• Summary
• Revenue/Taxation
• Expenses/Spending

3. Summary / Ontario
• Ontario GDP will grow at pace of 1.8 to 2.3% for the next decade or so.
• Ontario has spending a problem -
https://www.fraserinstitute.org/studies/spending-is-the-source-of-
ontarios-deficit-and-debt-problem
• Moodys has downgraded bonds and put Ontario on watch
(http://www.metronews.ca/news/canada/2015/02/23/ontario-has-a-
serious-spending-problem-finds-credit-report.html)
• Budget watchdog also doubts Ontario will balance the budget -
http://business.financialpost.com/news/economy/ontario-watchdog-
says-balanced-budget-unlikely-for-several-years-despite-liberals-pledge
• Healthcare professionals are saying the system is max
(https://cupe.ca/1000-hospital-staff-travel-great-distances-kingston-
rally-end-funding-freeze-choking-ontario

4. Government Revenue/Ontario
Source – Government of Ontario, Stats Canada and Federal Government of Canada
Commentary and Analysis
• McGuinty introduced harmonized sales tax
• McGuinty introduced Ontario Health Premium tax
• Ontario is recipient of equalization payments
• Wynne is selling of assets, i.e. Ontario Power Generation
• Wynne is introducing carbon taxes / 2017
• McGuinty cut corporate tax rates
• Ontario loss over 300,000 manufacturing jobs
• Ontario growing public sector jobs greater than private sector

5. Government Spending/Ontario
Source – Government of Ontario, Stats Canada and Federal Government of Canada
% of Expenses /Spending
Analysis Commentary
• Harris spent close to 40% on healthcare as compare to McGuinty and
Wynne that spend approximately 38% on healthcare
• LHINs and CCAC were created but have done little in terms of improving
wait times and/or controlling of costs
• Education received more money, but we have more grads having hard time
finding jobs. Meanwhile. Ontario has significant skills gas that could
influence FDI
• Wynne pledge to bring the debt down to 26% of GDP. If Wynne were to
bring the debt down then should need to reduced the debt by $10B per
year.
• Drummond report was virtually ignored and it was succinct in terms of
Ontario has spending problem. Ontario is spending from 18.5 to 17.5% of
GDP of government and only taking in 16.8% in revenue. More taxation is
not the answer