Ontario’s McGuinty Steps Down Amid Budget Impasse

Dalton McGuinty said yesterday he is stepping down as Ontario premier amid controversy over canceled power plants and an inability to implement budget cuts in his minority government.

McGuinty, after nine years as premier of Canada’s most populous province and 16 years as Liberal leader, said he chose to resign in order to allow his party to renew itself and to spend more time with his family.

“It’s time for renewal, it’s time for the next Liberal premier,” McGuinty, 57, told lawmakers from his party yesterday.

A Forum Research poll released last month found the Liberals had the support of 20 percent of voters, compared with 37 percent for the Progressive Conservatives and 35 percent for the New Democratic Party.

McGuinty’s resignation comes as opposition lawmakers accuse his government of hiding the costs related to cancellation of two power plant projects, and refuse to support a public sector wage freeze to curb the province’s deficit.

Finance Minister Dwight Duncan released a budget update yesterday that forecast the deficit would be C$14.4 billion ($14.7 billion) in the fiscal year that began April 1, more than C$400 million less than forecast earlier in the year. Duncan said the government remained on track to eliminate the deficit by 2017.

Ontario’s credit rating was downgraded by Moody’s Investors Service on April 26 to Aa2 from Aa1 and the outlook revised to stable from negative amid concern about stalling growth.

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.