Yesterday, Ontario released its Fall Economic Update and Fiscal Review.
Both revenues and economic growth are slightly lower than expected. But, the government is sticking to its deficit reduction plan; and holding it together with string and masking tape.
It is hoping that an increased focus on collecting taxes that are owed and shifting around reserve funds will do the trick this year. Meeting its timeline to reduce the deficit to zero will rely on program spending growth at less than 1 per cent per year until 2017-18.