Ontario Brings in Less Tax Money

Here's a Canadian Press article saying the government will bring in $778 million less in revenue this year than expected. Interestingly, the province claims the 2011-2012 budget deficit will still be only $16 billion:

"Finance Minister Dwight Duncan’s fall economic update confirms Ontario will post a $16-billion deficit for 2011-12."

I'm pretty skeptical. Especially if growth is weak this quarter and next quarter, the last in the fiscal year due to all the European craziness.

The article also contains this tidbit:

"Duncan also says the government will consider a recommendation to limit overall spending increases to 1 per cent a year until the deficit is eliminated by 2017-18."

I don't really see how that's possible without a multi-year salary freeze for civil servants, teachers and doctors without some crazy cuts. The next two years will be ugly and after the teachers and doctors' current deal runs out, expect some fireworks.