Ontario Budget 2001 : ONTARIO MAKES LARGEST DEBT REDUCTION IN PROVINCIAL HISTORY

TORONTO — Finance Minister Jim Flaherty today announced the largest debt reduction of any government in Ontario's history.

"It is responsible to pay down debt," Flaherty said. "I am pleased to announce that in the past fiscal year we reduced our debt by the largest amount ever in the history of the Province of Ontario – $3 billion."

In the 2000 Budget, the Government made a commitment to reduce net provincial debt by at least $5 billion during the current term of office. With a contribution to debt reduction of $1 billion in 1999-2000 and $3 billion in 2000-01, the Government has already met 80 per cent of its commitment in the first two years.

With this payment, public debt interest is forecast to decline by almost $90 million from last year.

The Government remains committed to applying the $1 billion reserve, if not needed, plus any surpluses, to pay down net provincial debt, which is projected at $110.7 billion as at March 31, 2001.

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For more information visit www.fin.gov.on.ca