TORONTO

Half of Ontario’s $300-billion net debt has been racked up since 2003/04, a new study shows.

Between 2003/04 and 2015/16, Ontario’s debt level increased more than any other province, according to the Fraser Institute.

Over the 12-year period, Ontario’s net debt ballooned by $10,292 per person, which was the largest per-capita increase in the country.

Ontario’s debt burden has increased faster than in other provinces.

In 2003/04, Ontario held 45% of provincial debt in the country, but today it has climbed to 50%.

Although Ontario has half the country’s provincial debt, Ontario only accounts for 40% of the Canadian population and economic output.

“The rapid increase in government debt in Ontario comes at a significant cost to taxpayers, with approximately nine cents of every dollar collected by the provincial government spent on interest payments last year. That’s money unavailable for health care, education or other social services,” said Ben Eisen, co-author of the study: Debt Accumulation in Ontario Compared to Other Provinces.

The study says the Ontario government’s forecast of a balanced budget is smoke and mirrors.

“There is no end in sight to Ontario growing debt. In fact, Ontario’s provincial debt is expected to increase by billions of dollars each year for the foreseeable future,” Eisen said.

The per-person government debt in Ontario is worsening relative to the other provinces. Every Ontarian now owes about $21,600 in provincial government debt, compared to approximately $11,300 in 2003.

“By any measure, Ontario’s most populous province is now amongst most indebted,” Eisen said.

Ontario is rapidly closing ground on Quebec which has been the most indebted province in Canada for some time. Forecasts project that Ontario’s net debt per person will become more than Quebec’s within two years.

“Quebec has long had a reputation within Canada for fiscal mismanagement. But Quebec has finally turned a corner, balancing its budget and reining in debt while Ontario continues in the opposite direction.” Eisen said.