TORONTO—During this economic downturn, Ontario could tolerate a deficit in its normal operations of up to $3 billion and provide temporary economic stimulus and support without falling into structural deficit, says an Ontario Alternative Budget report released today by the Canadian Centre for Policy Alternatives (CCPA).
The report, by CCPA economist Hugh Mackenzie, recommends that the government use this fiscal room to make investments in infrastructure and public spending and to make significant down payments on key commitments.