The Ontario government has passed the Fiscal Transparency and Accountability Act 2004, designed to bring greater discipline and a new era of openness to the province’s finances.

“We are fulfilling one of the fundamental recommendations of former Provincial Auditor Erik Peters who urged the government to improve accountability of Ontario’s finances through greater transparency in and quality of budgets and fiscal updates,” Finance Minister Greg Sorbara said.

One of the key requirements of the legislation is the preparation of a pre-election report. “The report will be reviewed by the Auditor General and made public before an election so that no future Ontario government experiences the surprise of a $5.5 billion deficit that we faced after taking office,” Sorbara said.

Other elements of the act include maintaining a prudent debt-to-GDP ratio, planning for an annual balanced budget and a regular cycle for reporting financial and economic information. “We have a responsible four-year plan to bring the province back to financial health and we are keeping our commitment to accountability, transparency and fiscal responsibility, while delivering higher quality public services to Ontarians,” said Sorbara.

He also told the Standing Committee on Finance and Economic Affairs that the government’s modernization program has so far identified $350 million in savings. In last May’s Budget, the government committed to finding $750 million in savings by 2007-08. “We are now almost half-way to that goal,” Sorbara told the committee.