the provincial take

A previous blog talked about the"ordinary" budgetary revenue which  is separate from revenue from G.S.T.or P.S.T. and from the deficit revenues.I don't have data on the ordinary provincial             budget revenues but I do on the federal budget.A few years ago it was about $130 billion.So I estimated that now it is about $145 to $150 billion  with ordinary growth .The usual figure used to derive provincial data is 40%.That is,Ontario is about 40%of the Canadian population and 40% of the Canadian economy.So I estimated that the provincial budget was about $60 billion before deficits and P.S.T. revenues.This year the deficit  is about $16 billion(in 2010 it was about $21 billion).The P.S.T revenues at 8% of total income comes in at about $55 billion as the Ontario economy is about $700 billion.So the total government revenues come to about $130 billion in 2012.In addition,the revenue that comes out of the Ontario economy from the federal G.S.T tax is about $35 billion.So the total government revenue that comes out of the Ontario economy is about equal to $130 billion.This becomes a problem because the Ontario growth rate is slowing down considerably and a good part of it is because of too much money in the hands of the government.As everyone knows the consumer multiplier is larger than the government multiplier.