I feel obligated to note the return of deficit spending to Ontario. About $500 million dollars separates us from a balanced budget.
It’s disappointing, sure, but not exactly shocking. And certainly better than cutting a half billion dollars of spending. There have been some token cuts – mostly delays to new spending.
Good times will return in a few years. Manufacturing will still be hurting, but the GTA is well-positioned for when the financial crisis passes (did you see that Toronto is the world’s tenth city?). We can pay off the debt later.
Remember: a balanced budget is a means, not an end. We balance the budget when we can because it means we’ll be able to spend less on interest in the future and put that money towards things that make our lives better.