Bill 168 2016

An act to amend the Financial Administration Act

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

   1.  Section 18 of the Financial Administration Act is amended by adding the following subsections:

Debt limit

   (2)  Despite any other provision in this Act or any other Act, the Crown is not authorized to raise money by way of loan or to receive money through the issue and sale of securities at any time if the effect of doing so at that time would cause Ontario's net debt to exceed 45 per cent of Ontario's gross domestic product.

Gross domestic product

   (3)  For the purposes of subsection (2), Ontario's gross domestic product at any particular time is Ontario's gross domestic product at market prices (seasonally adjusted and at annual rates) as published in the Minister of Finance's most recent quarterly Ontario economic accounts.

Definition

   (4)  In this section,

"net debt" means the difference between the Province's total liabilities and its financial assets.

Commencement

   2.  This Act comes into force on the day it receives Royal Assent.

Short title

   3.  The short title of this Act is the Capping Ontario's Debt Act, 2016.

EXPLANATORY NOTE

The Financial Administration Act is amended to provide that the Crown is not authorized to raise money by way of loan or to receive money through the issue and sale of securities if the effect of doing so would cause Ontario's net debt to exceed 45 per cent of its gross domestic product.