Ontario government debt

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Fiscal Year Net Debt
(CDN$ billions)
2018-2019 325.0 (projected)
2017-2018 308.2
2016-2017 301.6
2015-2016 295.4
2014-2015 285.4
2013-2014 268.0
2012-2013 252.8
2011-2012 236.2
2010-2011 214.5
2009-2010 193.6
2008-2009 169.6
2007-2008 156.6
2006-2007 153.7
2005-2006 152.7
2004-2005 140.9
2003-2004 138.8
2002-2003 132.6
2001-2002 132.1
2000-2001 132.5
1999-2000 134.4
1998-1999 114.7
1997-1998 112.7
1996-1997 108.8
1995-1996 101.9
1994-1995 90.7
1993-1994 80.6
1992-1993 61.8
1991-1992 49.4
1990-1991 38.4
1989-1990 35.4
1988-1989 35.5
1987-1988 34.0
1986-1987 31.5
Source:

Ontario Financing Authority (2004-2014) [1]
Viable Opposition (1985-2004)
- referencing a TD Bank report [2]
Ontario Financing Authority [3]

The Ontario government debt is the net amount of money the Government of Ontario has borrowed from the general public, institutional investors and public-sector bodies. As of March 31, 2018, the Ontario government's total debt is projected to be CDN$348.79 billion.[4] The Debt-to-GDP ratio for 2017-2018 is 37.1% and interest on the debt is CDN$11.97 billion, representing 8.0% of Ontario's revenue and its fourth-largest spending area.[5][6]

Debt breakdown[edit]

As of March 31, 2018 the breakdown of Ontario's debt is as follows:[7]

  • Canadian Dollar Public Bonds: $259.4B (74%)
  • Foreign Currency Bonds: $56.4B (16%)
  • Canadian Dollar Treasury Bills: $18.9B (5%)
  • Canadian Dollar Non-Public Debt: $11.4B (3%)
  • US Dollar Commercial Paper: $2.6B (1%)

The majority of the debt (83.1%) was issued in Canadian currency.

History[edit]

The government of Ontario's debt has risen under all governments since 1989.

The Ontario New Democratic Party (NDP) government of Premier Bob Rae increased the total debt from $35.4 billion in 1989-1990 to $90.7 billion in 1994-1995.

The Progressive Conservative government of Premiers Mike Harris and Ernie Eves increased the debt from $90.7 billion in 1994-1995 to $132.6 billion in 2002-2003.

The Liberal government of Premiers Dalton McGuinty and Kathleen Wynne increased the total debt from $132.6 billion in 2002-2003 to $308.2 billion in 2017-2018.

Risks and consequences[edit]

In 2012, Moody's Investors Service downgraded Ontario's rating from Aa1 to Aa2, citing "growing debt burden" as a major concern.[8] In April 2018, the agency changed its outlook on this rating from "stable" to "negative," stating its expectation that "spending pressure will challenge the province's ability to sustain balanced fiscal results across multiple years."[9]

In 2012, the Provincial Solvency and Federal Obligations study found that Ontario had a 42.9% probability of defaulting on its debt obligations in the following 10-20 years (higher than any other province) and a 79.3% probability of defaulting in the following 30 years.[10]

Debt reduction[edit]

In 2012, the governing Liberal Party commissioned the Drummond Report, which outlined various measures to reduce the province's debt level.

Debt reduction was proposed by all three major provincial parties in their 2014 election platforms. The Progressive Conservative Party proposed to eliminate the deficit and reduce debt through eliminating 100,000 public sector jobs, a public sector wage freeze and benefit reduction, and service cuts to all programs except healthcare.[11] The New Democratic Party proposed to balance the budget by eliminating corporate tax "giveaways" and through the Fairness Tax on Ontario's highest income earners.[12] The Liberal Party proposed to balance the budget by 2017-2018 by establishing a committee of ministers to find $2.25B in savings over 3 years and reduce the number of government agencies by 30%.[13]

See also[edit]

References[edit]

  1. ^ "Borrowing & Debt History". www.ofina.on.ca. Ontario Financing Authority. 4 November 2013. Retrieved 4 January 2014. 
  2. ^ "Ontario's Fiscal History - It Is NOT A Pretty Picture". www.viableopposition.blogspot.ca. Viable Opposition. 27 March 2012. Retrieved 11 January 2014. 
  3. ^ "Borrowing & Debt History". www.ofina.on.ca. Ontario Financing Authority. 2 September 2016. Retrieved 2 September 2016. 
  4. ^ "2018 Ontario Budget Schedule of Debt" (PDF). www.ofina.on.ca. Ontario Financing Authority. Retrieved 20 April 2018. 
  5. ^ "Province's Debt History". www.fin.gov.on.ca. Ontario Ministry of Finance. Retrieved 20 April 2018. 
  6. ^ "Ontario debt projected to rise to $325B, Wynne Liberals to run deficits until 2024". Global News. 28 March 2018. Retrieved 20 April 2018. 
  7. ^ "Province's Consolidated Debt Portfolio". Ontario Financing Authority. Retrieved 20 April 2018. 
  8. ^ "Moody's downgrades Ontario's credit rating". www.thestar.com. Toronto Star. 26 April 2012. Retrieved 8 January 2014. 
  9. ^ "Rating Action: Moody's changes outlook to negative on Ontario's Aa2 ratings". 17 April 2018. Retrieved 20 April 2018. 
  10. ^ "Provincial Solvency and Federal Obligations" (PDF). www.macdonaldlaurier.ca. A Macdonald-Laurier Institute Publication. October 2012. Retrieved 8 January 2014. 
  11. ^ "Paths to Prosperity - An Agenda for Growth". www.ontariopc.uberflip.com. Ontario PC. 2013. Retrieved 4 January 2014. 
  12. ^ "A Balanced Approach to Balancing Books Ontario's Challenges: A consultation on debt and deficit" (PDF). www.ontariondp.com. Ontario NDP. 2012. Retrieved 4 January 2014. 
  13. ^ "Ontario Liberal 2014 Platform: "Kathleen Wynne's Plan for Ontario" Quick Reference Guide" (PDF). StrategyCorp. Retrieved 20 April 2018. 

External links[edit]