Ontario’s new Liberal government has inherited a $5.6 billion deficit from the departing Conservatives, a retired provincial auditor revealed today.

Premier Dalton McGuinty appointed Erik Peters to examine the books following his October 2 election win over Ernie Eves’s Tories.

The report was revealed Wednesday after the markets closed.

The provincial shortfall exceeded earlier estimates, which had been around $2 billion.

Peters recommended the Liberal government consider new legislation dealing with fiscal responsibility, including greater transparency in budgets and updates.