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The auditor projects the deficit to be 85% higher in 2019/20, $12.2 billion, and 92% higher in 2020/21 — $12.5 billion rather than $6.5 billion as announced in the budget.

“They create the perception that the government has more money available to it than it actually does,” Lysyk said. “This could lead decision-makers to allocate money to initiatives and programs when that money is in fact needed to pay for expenses that were not properly recorded.”

The auditor said the government has failed to reflect the true financial impact of borrowing to pay for its Fair Hydro Plan, which shaves an average of 25% off electricity customer bills.

The government has also recorded public sector pension plan funds as assets in its books as if the money were available to spend as it wishes, which it is not, the Lysyk review stated.

The effect of those two accounting measures is to create a false impression about the province’s level of indebtedness, added Lysyk.

The Wynne government has been in a protracted dispute with the auditor general over these accounting issue, and stands by the numbers in its spring budget.

“We made a decision that we need to reduce electricity bills by 25%,” Wynne said Wednesday. “We worked closely with professional accountants who helped us to design the plan. We have kept that debt in the electricity system and that is the responsible step that we have taken.”

In a joint statement, Finance Minister Charles Sousa and Treasury Board President Eleanor McMahon said the government’s position on how to account for pension funds and hydro borrowing is well supported by internal and external experts.

“Given these disagreements on accounting questions, there is also a difference of opinion on deficit numbers between the auditor general and the government,” the Ministers said.

The Ontario NDP and PCs welcomed the auditor’s reports but were not entirely clear on what, if any, impact it would have on their own election platform costing.