Ontarios Fiscal Framework

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Ontarios Fiscal Framework

• Sohrab Ghazi-Zadeh
• Fyaz Nazseer
• Iffat Tani

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The McGuinty government's second budget makes
key investments in education, health and a strong
economy while making significant progress
toward eliminating the deficit.
Honorable Dwight Duncan, Minister of Finance
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Budget Goals

• 2005-06 budget builds on progress of
• Post-secondary education
• Education
• Health
• Strong economy

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Revenue Composition
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Revenue Composition

• Consists of 4 different sources
• Taxation revenue
• Personal income tax, retail sales tax
• Payments from Government of Canada
• Canada Health Transfer, Canada Social Transfer
• Income from government enterprises
• Ontario Lottery and Gaming Corporation
• Other non-income revenues
• Vehicle and driver registration fees

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Revenue Composition

• Largest source personal income tax 25
• 2005-06 revenue - 82.1 billion
• Revenue to rise to 92.2 billion in 2008-09

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Expenditure Composition

• Biggest expense health care 40
• Top 5 Ministry spenders
• Health long-term care
• Education
• Finance
• Community social services
• Training colleges universities

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Ontarios Fiscal Plan

• Plan to eliminate the deficit no later than
  2008-09
• Balance budget will occur in 2007-08 if reserve
  is not required

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Ontarios Debt

• Total debt
• Sept. 30, 2005 156.9 billion
• March 31, 2006 158.7 billion
• Net debt
• Sept. 30, 2005 140.7 billion
• March 31, 2006 - 144.0 billion

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Debt Composition

• Composed of short long term bonds debentures
• Sept. 30, 2005
• Public debt 132.1 billion
• Non-public debt 24.8 billion

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Cost Of Debt

• March 31, 2005 interest on
• Total debt 6.4
• Public debt 5.7
• Non-public debt 10
• Sept. 30, 2005 interest on
• Total debt 6.2
• Public debt 5.6
• Non-public debt 9.7

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Pre-Budget Consultation Form

• What else can the Ontario government do to create
  a new generation of economic growth?
• What more can the Ontario government do to
  anticipate/address external challenges and risks?
• How can fiscal transparency and accountability be
  further improved?