NEWS
 
A credit downgrade for Ontario could affect you
Spending in areas like healthcare and education could be impacted
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Ontario's budget - it was what thrust the province into an election campaign and was ultimately what put a majority Liberal government in office.

With its high spending proposals over the first year, economists say credit rating agencies may downgrade the province, which will ultimately affect you and your kids.

TD economist Jonathan Bendiner says the lower the credit rating, the more interest the government pays on loans it takes out.

Senior Economist with BMO capital markets Robert Kavcic reveals that means less money for program spending. Which means services in healthcare and education may take a hit.

That's on top of austerity measures planned after this fiscal year to get the deficit down to zero by 2017-18.

Bendiner adds one of the challenges of the Liberals' fiscal plan is that most of the spending control they've proposed are in a couple of years, and they haven't laid out how they will achieve their goals.

Credit rating agency S&P already put a negative outlook on Ontario's economy in 2012.

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12 1

Ontario's budget - it was what thrust the province into an election campaign and was ultimately what put a majority Liberal government in office.

With its high spending proposals over the first year, economists say credit rating agencies may downgrade the province, which will ultimately affect you and your kids.

TD economist Jonathan Bendiner says the lower the credit rating, the more interest the government pays on loans it takes out.

Senior Economist with BMO capital markets Robert Kavcic reveals that means less money for program spending. Which means services in healthcare and education may take a hit.

That's on top of austerity measures planned after this fiscal year to get the deficit down to zero by 2017-18.

Bendiner adds one of the challenges of the Liberals' fiscal plan is that most of the spending control they've proposed are in a couple of years, and they haven't laid out how they will achieve their goals.

Credit rating agency S&P already put a negative outlook on Ontario's economy in 2012.

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