TORONTO - Ontario’s debt is nearly twice as large as California’s — even though the province has far fewer people and a much smaller economy, the Fraser Institute says.
The right-wing public policy think-tank will release a report Tuesday that compares Ontario’s debt burden to that of California.
“The study — Ontario vs. California Debt Burdens — notes that Ontario, with a fraction of California’s population and a significantly smaller economy, carries a debt load almost twice as large as the Golden State,” said a news release Monday.
The Institute compared the bonded debt for both jurisdictions in its report. Ontario’s bonded debt stands at $267 billion while California’s stands at $144 billion.
California has a population of more than 38 million while about 13.5 million people live in Ontario.
Sean Speer, associate director of fiscal studies with the Institute, said while California — one of the “most indebted states” in the U.S. — has taken steps to bring its finances under control, Ontario is moving in the opposite direction.
“The fact is, if you use virtually any measure — debt to GDP, overall debt, debt interest payments — Ontario actually finds itself in a worse position,” Speer said.
He added that almost 10% of Ontario’s tax revenue goes toward debt interest payments. In contrast, around 2.8% of California tax revenue goes to service the state’s debt.
He noted last year’s provincial budget expected debt service charges to be the fastest growing expenditure over the next three years.
“We don’t have a good report card and that’s why it’s of critical importance that the public debate in Ontario shifts from how to spend taxpayer money to how to get this public debt under control before it’s too late,” he said.
Ontario’s debt size nearly double California's: Study | Ontario | News | Toronto Sun
The right-wing public policy think-tank will release a report Tuesday that compares Ontario’s debt burden to that of California.
“The study — Ontario vs. California Debt Burdens — notes that Ontario, with a fraction of California’s population and a significantly smaller economy, carries a debt load almost twice as large as the Golden State,” said a news release Monday.
The Institute compared the bonded debt for both jurisdictions in its report. Ontario’s bonded debt stands at $267 billion while California’s stands at $144 billion.
California has a population of more than 38 million while about 13.5 million people live in Ontario.
Sean Speer, associate director of fiscal studies with the Institute, said while California — one of the “most indebted states” in the U.S. — has taken steps to bring its finances under control, Ontario is moving in the opposite direction.
“The fact is, if you use virtually any measure — debt to GDP, overall debt, debt interest payments — Ontario actually finds itself in a worse position,” Speer said.
He added that almost 10% of Ontario’s tax revenue goes toward debt interest payments. In contrast, around 2.8% of California tax revenue goes to service the state’s debt.
He noted last year’s provincial budget expected debt service charges to be the fastest growing expenditure over the next three years.
“We don’t have a good report card and that’s why it’s of critical importance that the public debate in Ontario shifts from how to spend taxpayer money to how to get this public debt under control before it’s too late,” he said.
Ontario’s debt size nearly double California's: Study | Ontario | News | Toronto Sun
