The Progressive Conservative government is preparing its blueprint for belt-tightening.

Treasury Board President Peter Bethlenfalvy on Tuesday released a 48-page “line-by-line review” of government spending, prepared by EY Canada for about $500,000, that recommends changes to get spending under control.

With the new administration tackling a $15-billion deficit — due mostly to accounting changes it is embracing over the booking of pension assets — Bethlenfalvy stressed the Tories will not cut jobs as they rein in expenditures.

“This is not a blueprint for cuts ... we have a blueprint for our path forward,” the minister told reporters.

But with a provincial debt of $338 billion, Bethlenfalvy said the new government must examine new ways of doing things, including means-testing to keep services sustainable.

He said as part of the changes the Tories will be “ensuring that government funding is directed to those who require it the most.”

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“With regards to means-testing … OHIP+ was an example that we took a look at immediately and said without reducing service levels for Ontarians, we saved millions of dollars without one job cut.”

That was a reference to the previous Liberal government’s universal pharmacare plan for those 24 and under. The Tories changed it in June by ending free prescriptions for anyone for whom those benefits were covered by an employers’ plan.

Bethlenfalvy emphasized that move ensured the neediest Ontarians still received medications without affecting those who could afford them.

“That was an example of the range of ideas that we’re looking at,” he said.

“This is about modernizing and transforming the way that government does business, so we have to look at a range of options. We have to pull ourselves into the 21st century. We’ve got to embrace technology in the digital era.”

Premier Doug Ford, meanwhile, warned “we’re going to have tough decisions over the next couple of years.”

Ford has promised to cut $6 billion from the province’s $150 billion annual budget.

On Monday, the premier announced a “select committee” of six Tory MPPs and three New Democrats would examine what he called a Liberal “coverup” of the provincial deficit.

That committee will probe how the shortfall ballooned from Wynne’s estimate of $6.7 billion in March to Finance Minister Vic Fedeli’s forecast of $15 billion last Friday.

But the inflated PC deficit accounts for Liberal promises such as an expansion of free daycare, which Ford’s government is not implementing.

As well, it uses a disputed accounting treatment that does not count $11 billion in jointly sponsored teachers’ and public service pension funds as assets.

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Interim Liberal leader John Fraser said Bethlenfalvy is just delivering “a context for cuts” that could undermine cherished social programs.

“I’d be very concerned about that means test for health care. Is that a context to cut health care? That’s what it sounds like to me,” said Fraser.

“Does that mean service fees to people? That’s not how we established our health care system. It’s a universal health-care system. Everyone is treated equally,” he said.

NDP MPP Sara Singh said the Tories’ plan is to “cut and privatize.”

“This government is committed to making deep cuts,” said Singh (Brampton Centre).

“What this government is signalling is that the means-testing is going to be a way to cut programs and a way to cut who is eligible for those programs,” she said.

Green Leader Mike Schreiner said it’s “pretty disturbing” if the Tories begin basing access to programs on income levels.

“One of the things that’s made Canada great is universal programs like universal health care, for example, that includes all citizens,” said Schreiner.

“If you’re going to maintain support for public programs it’s important to make sure everyone in the public benefits from those programs,” he said.

Ontario Public Service Employees Union president Warren (Smokey) Thomas said government workers are “ready for the storm ahead.”

“Ford’s fiscal approach could result in the most abysmal government failure we’ve seen to date,” said Thomas.

“EY’s $500,000 analysis follows the same failed logic of governments gone by. If this approach made any sense, it wouldn’t have already failed so many times — it’s the very definition of political insanity,” he said.

But Rocco Rossi, president and CEO of the Ontario Chamber of Commerce, said some good can come of Bethlenfalvy’s proposals.

“We applaud the government of Ontario’s commitment to cutting unproductive red tape and restoring transparency and accountability to Ontario taxpayers,” said Rossi.

Robert Benzie is the Star's Queen's Park bureau chief and a reporter covering Ontario politics. Follow him on Twitter: @robertbenzie

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