Ontario dealing with $16B deficit

Premier Dalton McGuinty promises he will not raise taxes to eliminate a $16-billion deficit.

McGuinty says the minority Liberal government will not adopt all 362 cost-cutting recommendations economist Don Drummond's report, and will likely change some while ignoring others.

McGuinty said a flat "no" when asked directly if he would raise taxes to offset some of the ideas from Drummond that get rejected, but then he walked away from the microphone.

The premier also dismissed Drummond's criticism that politicians failed to talk about Ontario's harsh fiscal reality during last fall's election campaign, saying he wants to look forward, not back.

McGuinty says the Liberals will not make "thoughtless, reckless, across-the-board cuts," and if it comes to a choice between funding horse racing or home care, then home care will win.

The Liberals last week signalled the Ontario horse racing industry's $345-million annual share of slot machine revenues could be withdrawn by the cash-strapped government.