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Liberals pressed on cost of credit rating change
Province spending billions on interest charges - and that could go up.
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The opposition Tories at Queen's Park continue to press the Liberals on fears a credit rating downgrade is in Ontario's future.

If that happens, more taxpayer dollars will be spent on interest payments. This fiscal year, the province expects to pay $11 billion in interest on its $295.8 billion of debt alone. If that interest rate goes up by just one percentage point, it means they'll shell out $400 million more of your money for interest payments.

Ontario already paid $10.5 billion in interest on its debt last year.

Last week, Moody's changed its fiscal outlook for Ontario from stable to negative, based on uncertainty the province will pay down its $12.5 billion deficit by 2017-18.

Its credit rating stays at the Aa2 level but has a greater chance of being downgraded later on with this move. A downgrade, means a change in interest rates on government loans.

Interim Progressive Conservative leader Jim Wilson says means less money for program spending which could translate into services in healthcare and education taking a hit. If not, the province could compensate by raising taxes.

Premier Kathleen Wynne defended the Liberals big-spending budget in Question Period. She says they will be able to meet deficit targets.

The budget will be tabled again on July 14.

 Related Content:

A credit rating downgrade could affect you

 

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The opposition Tories at Queen's Park continue to press the Liberals on fears a credit rating downgrade is in Ontario's future.

If that happens, more taxpayer dollars will be spent on interest payments. This fiscal year, the province expects to pay $11 billion in interest on its $295.8 billion of debt alone. If that interest rate goes up by just one percentage point, it means they'll shell out $400 million more of your money for interest payments.

Ontario already paid $10.5 billion in interest on its debt last year.

Last week, Moody's changed its fiscal outlook for Ontario from stable to negative, based on uncertainty the province will pay down its $12.5 billion deficit by 2017-18.

Its credit rating stays at the Aa2 level but has a greater chance of being downgraded later on with this move. A downgrade, means a change in interest rates on government loans.

Interim Progressive Conservative leader Jim Wilson says means less money for program spending which could translate into services in healthcare and education taking a hit. If not, the province could compensate by raising taxes.

Premier Kathleen Wynne defended the Liberals big-spending budget in Question Period. She says they will be able to meet deficit targets.

The budget will be tabled again on July 14.

 Related Content:

A credit rating downgrade could affect you

 

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