Ontario and Quebec face tough debt decisions: Debt caused (mostly) by bad policy decisions; hard choices lie ahead - Ontario in worse shape than Quebec

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CALGARY, July 3, 2014 /CNW/ - What is the main reason for government debt accumulation in Canada? Is the main driver of debt the public policy choices made by governments, or are non-policy factors, like interest rates and the economic environment to blame? Answering this question is the first step for governments to take in order to get that debt under control.

In a new report by The School of Public Policy, Ontario and Quebec are examined to determine how and why they accumulated their debts, what the tax and spending implication are of that debt, and how they can get that debt under control.

The report concludes that the causes of debt are disproportionately public policy based, and not the fault of external factors. There is no question, according to the report, that Ontario and Quebec face very tough choices ahead. In fact, the report lays out solutions for Ontario and Quebec – solutions that demand difficult policy decisions that will have a major impact on taxpayers. Moreover, the report concludes by pointing out that the public policy choices that lie ahead are significantly more daunting for Ontario, than for Quebec.

The report can be found at http://policyschool.ucalgary.ca/?q=content/who-or-what-blame-accumulation-debt-ontario-and-quebec-and-what-will-it-take-stop-bleeding

SOURCE The School of Public Policy - University of Calgary


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