A highly-anticipated spending review by a former TD bank economist will suggest scrapping all-day kindergarten in Ontario to save hundreds of millions of dollars, according to a report.

In a lengthy report set to be released next week, Don Drummond will propose axing the full-day program for four year olds, the Toronto Sun reported Friday.

For months, Drummond has been studying the province's finances to identify potential cuts as Ontario tries to erase a $16-billion deficit.

One of those proposed cuts will be the all-day kindergarten program championed by Premier Dalton McGuinty, according to the report, which quotes an unidentified source.

Neither Drummond, McGuinty nor anyone from his government has commented on the newspaper report. Drummond's review, which contains dozens and dozens of cost-saving recommendations, is scheduled to be released Wednesday.

Nothing is set in stone, however. The province will examine the recommendations and then decide what to cut and what to keep.

About 800 schools already have all-day kindergarten, which the government has been phasing in since the 2010-11 school year. The government spent $200 million to implement the program and is spending another $300 million this school year, according to the report.

Previously, Ontario's government estimated about 120,000 children, almost half of the province's four and five year olds, would be in school full time by the fall of 2012.

Prior to last fall's provincial election, the Liberals promised to extend all-day kindergarten to all elementary schools by September 2014 at a total cost of $1.5 billion.

Group warns of widespread health cuts

Drummond's report will identify potential cost-saving measures in several departments, including health care.

Because of potential cuts to the province's health-care system, an advocacy group claims billions of dollars in reductions are coming.

The Ontario Health Coalition said cutbacks are being planned despite "urgent and unmet" health needs.

In a news release, the group said restructuring plans contain serious costing errors and inadequacies that put Ontario's most vulnerable patients at risk.

The OHC accuses the government of manufacturing a crisis to justify major restructuring on the horizon at a time when Ontario's health spending is almost the lowest in Canada.

If a loophole is closed in the Employer Health Tax, a "more equitable funding system" could generate $2.4 billion per year to help alleviate some of the cost pressures in the health system, the group claims.

With files from The Canadian Press