Click here to close now.


News Feed Item

The Fraser Institute: McGuinty Ranked Eighth Out of 10 Premiers for Managing Provincial Finances; Successor Must Deal With Legacy of Poor Fiscal Management

TORONTO, ONTARIO -- (Marketwire) -- 12/06/12 -- Outgoing Ontario Premier Dalton McGuinty has one of the worst records among Canadian premiers for managing provincial finances, according to a new analysis of the fiscal records of 10 Canadian premiers, released today by the Fraser Institute, Canada's leading public policy think-tank.

But with Premier McGuinty poised to step down, whoever succeeds him has an opportunity to break from past fiscal policies and focus efforts on improving the management of Ontario's finances, says Charles Lammam, Fraser Institute economist and co-author of Measuring the Fiscal Performance of Canada's Premiers 2012.

"Research shows sound fiscal policy is a key determinant of a province's long-term economic success. Unfortunately, when Premier McGuinty leaves office, he will have left a legacy of poor fiscal management in comparison to the records of other Canadian premiers," Lammam said.

Measuring the Fiscal Performance of Canada's Premiers 2012 ranks McGuinty eighth overall with a score of 28.9 out of 100. Only Robert Ghiz of Prince Edward Island (23.5 out of 100) and Greg Selinger of Manitoba (19.2 out of 100) scored worse.

Kathy Dunderdale (Newfoundland and Labrador) ranked first overall with a score of 71.4. David Alward (New Brunswick) placed a close second, scoring 70.4, while Brad Wall of Saskatchewan ranked third (61.6) and British Columbia's Christy Clark was fourth (60.8).

The report measures the fiscal performance of 10 Canadian premiers relative to each other (eight current and two former) during their time in office up to the 2011/12 fiscal year. Each premier received an overall score (out of 100) and rank (out of 10) based on their performance on three components of fiscal policy: government spending, taxes, and debt and deficits.

Government Spending

A large body of academic research shows that excessive increases to government spending can hinder an economy's performance.

McGuinty ranked ninth overall on the government spending component with a score of 12.3 out of 100. New Brunswick's Alward was first on this measure with a score of 88.5.

While in office, McGuinty increased program spending by an average of 6.1 per cent annually-nearly twice the combined rate of inflation and population growth (3.1 per cent) and well over Ontario's annual economic growth rate (3.6 per cent).

"Premier McGuinty resorted to a combination of tax hikes and increased debt to finance large spending increases. This inability to prudently manage government spending was his major failing," Lammam said.


Tax rates and the structure of the tax system have a significant impact on incentives that influence whether businesses and individuals engage in productive economic activity.

McGuinty fared better on tax policy, ranking fifth overall with a score of 54.8, one of only five premiers to score above 50.0. Alward again topped the rankings with 87.6 out of 100.

"Premier McGuinty increased several taxes shortly after coming to power in 2003 but reversed course in 2009 when he announced several tax reforms," Lammam said.

"Unfortunately, earlier this year he indicated that Ontario will not follow through on plans to reduce its corporate tax rate to 10 per cent by 2013, a plan that would have improved the provincial investment climate."

Debt and Deficits

Debts and deficits are a critical aspect of fiscal performance because annual deficits increase the overall level of government debt, requiring more tax dollars to be spent on interest costs and less on public services and tax relief.

McGuinty scored 19.7 out of 100 on the debt and deficit measure, ranking him ninth overall. Newfoundland's Dunderdale and Saskatchewan's Wall tied for first, each scoring a perfect 100 for averaging a budget surplus during their tenure and reducing the share of government debt in the provincial economy.

McGuinty, on the other hand, averaged a deficit over his tenure and increased Ontario's debt to 36.0 per cent of the economy in 2011/12 from 28.2 per cent in 2003/04. A $14.4 billion deficit is planned for 2012/13 with deficits expected to continue until 2017/18.

"Ongoing deficits and increased government debt will be a drag on economic growth and add to the burden of repayment for Ontario's next generation," Lammam said.

"Since we began measuring the fiscal performance of Canadian premiers, Premier McGuinty has consistently been ranked among the bottom three. Now with Premier McGuinty stepping down, his successor has an opportunity to better manage provincial finances and set the foundation for a stronger Ontario economy."

Follow the Fraser Institute on Twitter

Become a fan on Facebook

The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of 86 think-tanks. Its mission is to measure, study, and communicate the impact of competitive markets and government intervention on the welfare of individuals. To protect the Institute's independence, it does not accept grants from governments or contracts for research. Visit

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at, explored the value of Kibana 4 for log analysis and provided a hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He examined three use cases: IT operations, business intelligence, and security and compliance. Asaf Yigal is co-founder and VP of Product at log analytics software company In the past, he was co-founder of social-trading platform Currensee, which...
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Su...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Sam McIntyre, Partner Enablement Specialist at eFolder, presented how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He also demonstrated how easy it is to search and restore cloud application data using Cloudfinder.
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and t...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessi...
As organizations shift towards IT-as-a-service models, the need for managing & protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection & E-Discovery of your data - whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise.