Doug Ford’s government has been spending money at a faster rate than the previous Liberal administration in Ontario, according to the 2025 budget. The document projects a $14.6-billion deficit this fiscal year, nearly 10 times higher than the $1.5-billion deficit projected in last October’s fall economic statement and more than double the $4.6 billion deficit forecast in March.
This level of deficit spending is reminiscent of Ontario’s one and only NDP government from 1990-95, led by then-premier Bob Rae. Rae inherited a surplus from the previous Liberal government but hiked the deficit to a record high during his tenure.
“We were proud to be fighting against recession rather than cutting back on services during difficult times,” Rae stated about his party’s approach.
Finance Minister Peter Bethlenfalvy used similar language when announcing that his new budget aims at “protecting workers and businesses across our great province.” He cited U.S. President Donald Trump’s tariffs as part of what he called “a perfect storm.”
However, critics argue that these claims ring hollow given how much more quickly Ford has been increasing spending since taking office compared with former premier Kathleen Wynne’s Liberals.
NDP’s Response
The NDP plans to table amendments to Bill 2 next week aimed at forcing Finance Minister Peter Bethlenfalvy to provide regular updates on spending related to COVID-19 measures announced since March 2023.
NDP finance critic Catherine Fife expressed concerns about the lack of transparency regarding COVID-19-related expenditures, stating that these figures are not reflected in any public data or reports released by the Treasury Board Secretariat or other agencies responsible for managing public funds.
Fife pointed out that while there have been increases in spending under both governments, they have occurred at different rates. She argues that this undermines Bethlenfalvy’s assertion that he is simply responding to external circumstances, such as inflationary pressures caused by U.S.-imposed tariffs following Russia’s invasion of Ukraine last February.
Historical Context
Ford took office after winning a majority mandate for himself and his Progressive Conservative Party (PC) just months into Wynne’s second term as premier, during which she had already begun implementing austerity measures aimed at reducing Ontario’s debt burden following years of deficits under her predecessor Dalton McGuinty.
Wynne’s austerity measures included:
- Freezing civil service salaries for three years starting January 2013
- Reducing funding for post-secondary education
- Cancelling two planned gas plants
- Selling off Hydro One shares
- Eliminating corporate tax loopholes worth billions annually
- Raising taxes on cigarettes and liquor stores while freezing beer prices until July this year
In contrast, Fife noted that Ford has increased provincial funding for hospitals by nearly $1 billion over three years starting April this year through Bill C-2, which also includes additional funding for schools and child care centers.
Conclusion
Fife argues that the differences in spending rates between the two administrations indicate "reckless spending" without a clear plan to manage the debt burden left behind by McGuinty.
“We can’t keep going down a road where we’re just throwing money around without any accountability,” Fife stated Thursday afternoon outside the legislature building at Queen’s Park in Toronto.
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