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Toronto — The deepening global credit crisis and stock-market plunge could push Canada's largest province into a deficit, Ontario Finance Minister Dwight Duncan hinted today.

As recently as two weeks ago, Mr. Duncan confidently predicted that the province will post a surplus when he releases the fall economic outlook on Oct. 22. But today, Mr. Duncan would say only that he continues to monitor the impact of the global crisis on Canadian financial institutions and stock markets.

“Two weeks ago there weren't European banks being propped up,” he said, when asked by reporters why he has changed his tune. “The world is a very different place.”

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Ontario Premier Dalton McGuinty sent a strong signal his province will be slipping into deficit as he joined fellow premiers today for an emergency meeting on the economy.

Mr. McGuinty ruled out raising taxes and said he would be very careful before cutting spending programs on services. He suggested running a deficit is no longer a lethal toxin to Canadian politicians.

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Ontario may run deficit

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The worldwide financial crisis is forcing the Ontario government to run a $500 million budget deficit this year, delay the hiring of 9,000 nurses and 50 family health teams, and defer some school repairs, says Finance Minister Dwight Duncan....The government is predicting the economy will grow just 0.1 per cent for 2008, down dramatically from the 1.1 per cent predicted in the spring budget.

To send a message of restraint, the Liberals are trimming $108 million from this year's budget...

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