The Kathleen Wynne government is low-balling its budget deficits by billions of dollars, according to a report released Wednesday by the province's auditor general, just six weeks ahead of the provincial election.
The Liberal government's projected deficit of $6.7 billion for 2018-19 should actually be $11.7 billion, says Auditor General Bonnie Lysyk in her pre-election report on government finances.
Lysyk said the government failed to account properly for the financial impact of its Fair Hydro Plan on provincial coffers and improperly treated the revenues and expenses related to two provincial pension plans.
For the same reasons, the auditor says the Liberals are underestimating the deficits in future years:
- $6.6 billion deficit in 2019-20 should be $12.2 billion
- $6.5 billion deficit in 2020-21 should be $12.5 billion
The Liberals blame the differences on "ongoing technical accounting disputes," according to a statement from Finance Minister Charles Sousa and Treasury Board President Eleanor McMahon.
"The government's opinions on these two matters are well supported by internal and external experts, and have always informed the government's ongoing reporting on its fiscal status," said the statement.
Provincial law requires the auditor to review the government's financial projections ahead of each scheduled election to determine whether the figures are reasonable. The law was brought in under former premier Dalton McGuinty after the previous PC government left the province with a hidden deficit.