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week in review

These are stories Report on Business followed this week.

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Now that Ontario's Kathleen Wynne has won a majority government, it's back to the books. And what some observers consider a "tall order."

Ms. Wynne and her Liberals, who won re-election in Canada's most populous province, plan to quickly re-introduce the proposed budget that sparked Thursday's vote.

As The Globe and Mail's Adrian Morrow reports, that document proposes increased spending on social programs, billions of dollars for transit and transportation, a new provincial pension scheme, and higher taxes on the wealthy.

The Liberals also said they would miss their short-term deficit targets, though stick to the original longer-term goal, projecting a fiscal 2014-15 shortfall of $12.5-billion, or 1.7 per cent of gross domestic product.

Now, back at it. And the challenge remains the same.

"While the province continued to target FY17/18 for a balanced budget, it took a clear step back this fiscal year as a combination of higher program spending and weaker-than-expected underlying revenues more than offset tax increases," senior economist Robert Kavcic said Friday in the wake of the Liberal victory.

"However, while all of the austerity talk during the election campaign was focused on the [Progressive Conservatives], the Liberal budget itself carried a stiff dose of fiscal restraint; it was just buried deeper in the document and pushed further out on the forecast horizon," he told BMO clients in a research note.

"That is highlighted by zero room for public-sector compensation increases over the medium term, and flat nominal program spending for three years starting in 2015 – a tall order indeed."

Mr. Kavcic said many now wonder what all of this could mean to Ontario's credit rating, and the agencies that rate its debt are watching closely.

They have already cited the challenges of meeting the targets.

Some metrics are "slightly better" than they were two years ago, Mr. Kavcic said, while others are in worse positions.

"Meantime, the cost-containment plan remains a major question mark, and after some progress in recent years, this year's budget left some questioning the resolve to hit those targets," he said.

"A majority government, though, now makes pushing through necessary restraint a bit easier."

Adrian Morrow: Fresh off victory, Wynne eyes ambitious Ontario budget

David Parkinson in ROB Insight (for subscribers): Can Wynne put the brakes on Ontario's credit rating slide?

Why so many (except the truckers and me) hate Ontario's budget

Full coverage of the Ontario campaign and election

Fun with photos

The week in Business Briefing

BMO on Canada's economy: 'There's Alberta, then there's everyone else'

Loonie to lift Canada's economy, housing to hinder, forecast says

Breadbaskets and basket cases: What looms for Ontario's next premier

Founder Chip Wilson loses millions in Lululemon stock rout

The week in Streetwise (for subscribers)

Tim Kiladze: Stiff competition means asset managers 'can no longer be picky'

Boyd Erman: Nationalism, coverage led Kinaxis to pick TSX for IPO

Adrian Myers: Regulators should get out of takeovers

Jeffrey Jones: Unlocking Duvernay's riches a tough riddle

David Hains: Smaller higher risk lenders worry BoC most

The week in Real Estate

Tara Perins: CMHC reveals condo developer insurance sales were made before 2010

Gap grows between building permits, number of new homes built

Canada's condo-mania to blame for lack of affordable rentals: OECD

Canadian home prices hit record in May

Three little-known hot, but affordable Canadian housing markets

The week in ROB Insight (for subscribers)

Ian McGugan: Food sector pays up to sate appetite for acquisitions

Clément Gignac: How Canadians can save more for their retirement

Andrew Jackson: The Canadian income inequality gap getting more difficult to close

David Parkins: Canadians make a surprising return to frugality

Brian Milner: What's behind Canadian reluctance to do business in Asia?

The week's top news

Rachelle Younglai: Gold fix under scrutiny as regulators probe archaic system

Shawn McCarthy and Joanna Slater: Ottawa vows oil-sands export route through B.C.

Barrie McKenna and Tara Perkins: OECD report highlights Canadian inequality

Marina Strauss: Scared investors flee as Lululemon cuts outlook

Barrie McKenna: Canada's economy could take hit from China banking crisis, BoC warns

The week's must-reads

Iain Marlow: How Canadian canola is helping educate India's poor

Jacqueline Nelson: Cost of Canadian cybercrime reaches $3.2-billion in 2013

Marina Strauss: From the darkroom to Instagram: Canada's photo stores refocus

Eric Reguly: Why in the Eternal City, restoring landmarks can take an eternity

Kelly Cryderman and Brent Jang: Enbridge works to fix a dented brand