Ontario Trims Sails To Tackle World's Largest Sub-sovereign Debt

Canada's Ontario province scrapped plans for a francophone university, expanded alcohol sales and eliminated income tax for low earners Thursday as it sought to rein in the world's largest sub-sovereign debt.

Ottawa, (UrduPoint / Pakistan Point News - 16th Nov, 2018 ) :Canada's Ontario province scrapped plans for a francophone university, expanded alcohol sales and eliminated income tax for low earners Thursday as it sought to rein in the world's largest sub-sovereign debt.

According to an economic update, Premier Doug Ford's Tory government trimmed spending by Can$500 million (US$380 million) since sweeping into office in June after 15 years of Liberal rule.

This is expected to result in a Can$14.5 billion budget deficit for the fiscal year ending March 31, 2019. Ontario's debt, meanwhile, stands at Can$338 billion, topping Moody's ratings for sub-sovereign borrowers.

Finance Minister Victor Fedeli said the government of Canada's most populous province, and arguably its Primary economic engine, aims to balance its books in a "reasonable" time frame.

"Our path forward is clear, and that is why it is important to maintain our resolve to pursue fiscal discipline and ultimately restore our books to balance," he said.

In its first months in office, the provincial government canceled a cap-and-trade program, pitting it against Canadian Prime Minister Justin Trudeau's efforts to slash greenhouse gas emissions nationwide.

On Thursday, it said it was eliminating rental controls on new rental units in an effort to spur new construction to meet strong demand for housing.

It extended the hours of government-run beer and liquor stores to 11.00 pm and eliminated several government watchdogs.

In a setback for Ontario's minority French-speaking population of 600,000, plans for a francophone university to open in Toronto in 2020 were also canceled.

And it eliminated income taxes for those earning less than Can$30,000 a year, partly offsetting its scrapping of a planned minimum wage hike.