Premier Dalton McGuinty says he has not even begun to choose which programs he will cut to start whittling down the biggest deficit in the province's history, but he has dropped a few clues.

The premier has to reduce his government's spending dramatically, because it is headed for a $24.7 billion deficit in the current year, brought on mainly by a slump in the economy from which recovery will take years.

McGuinty has made it clear that he expects to restrain spending in health, by far his most expensive responsibility, and has made several studies aimed at reducing its costs.

The government likes to describe these as working papers rather than approved policies, but the premier has warned hospitals will have to live with smaller annual increases in funding.

Because demand for hospital services is increasing constantly, particularly from the growing number of older residents, this could challenge funding decreases.

One of the studies focused on drug costs and new Health Minister Bev Matthews has said she is not considering reducing drug benefits for seniors and social assistance recipients, but the two groups naturally are worried this will result in fewer drugs being available.

The Liberals also have started nibbling away at programs that serve limited sectors of the population, suggesting a trend toward cutting where protesters are likely to be fewer.

Programs reduced so far include one to persuade people to stop smoking. Health Promotion Minister Margarett Best has tried to justify this by saying government in times of recession has to make the best use of public money.

But this cut could be counter-productive, because money the province saves will be small compared to the cost of treating tobacco-related illnesses.

The province similarly has stopped accepting new applicants for a program training out-of-work residents to start their own businesses.

Training, Colleges and Universities Minister John Milloy has explained that resources are finite and must be used where they are most needed, but the program has helped some and there is concern it will not be revived.

The province for four years has had a program that provides funds to small municipalities particularly for health and social services and some of these have had hints it will be ended, but ministers stonewall any questions on this.

In the latest example, the government has refused to contribute toward the costs of repairing homes and businesses severely damaged last summer by a tornado in Vaughan and flooding in Hamilton. It argued its criteria do not permit it to help, but earlier interpreted them more generously, so this seems another indication of where belt-tightening will come.

The province has no option but to reduce dramatically its hiring of consultants after revelations it spent $1 million a day last year hiring many, including friends, some of whom were paid $3,000 a day and still billed taxpayers for every coffee and doughnut.

The government is already under huge pressure to fire many of them and only a few restaurants will shed tears over their absence.

McGuinty also seems to be preparing to save big time by reducing the cost of the public service. Finance Minister Dwight Duncan said months ago that the province has a target of reducing the size of its public service by 5 per cent over the next three years through attrition and "other measures."

He did not specify what the other measures would be, but McGuinty more recently would not rule out saving by forcing public servants to take days off without pay, as New Democratic Party premier Bob Rae did in the early 1990s, when they became known as Rae Days.

Most of the public feels that public servants have been treated generously, keeping jobs and receiving pay increases others were denied in the recession.

Some municipal councils also have asked McGuinty to impose pay freezes on their own and provincial public servants, and if he did he would have many people cheering him on.