Drummond Report

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The Drummond Report is a nickname given to a deficit-reduction report written by economist Don Drummond. Released on February 15, 2012 around great hype, the report is intended to advise the government of Ontario on how to reduce the province's debt levels - the highest for any province in Canada.

Background[edit]

Driven by the late-2000s financial crisis, the resultant loss of jobs (particularly in manufacturing) and downturn in revenue, and the increase in government expenditure, Ontario's deficit was projected by mid-February 2012 to reach $16 billion by the time of the March budget, adding to a debt already in excess of $240 billion.[1] Debt serving charges alone cost the province $10 billion every year.[2] The increase in debt culminated in December 2011 when credit rating agency Moody's changed its assessment of Ontario's economic outlook from 'stable' to 'negative'.[2]

To help reduce the level of debt, in 2011 the Ontario government - a Liberal administration led by Dalton McGuinty - commissioned economist Don Drummond to lead a four-person commission investigating how the government could reduce its deficit.[3]

References[edit]

  1. ^ "Drummond report on Ontario spending due today". CBC News. 15 February 2012. Retrieved 15 February 2012. 
  2. ^ a b Nguyen, Linda (15 February 2012). "Drummond Report: 'Tough medicine' for Ontario could be model for fiscal reform across country". National Post. Retrieved 15 February 2012. 
  3. ^ Benzie, Robert; Tanya Talaga (15 February 2012). "Drummond Report: A roadmap to an austere Ontario of public-service cuts". The Star. Retrieved 15 February 2012.