TORONTO - There's another shoe yet to drop as Ontario battles its economic woes but upcoming program and service cuts won't be sweeping, Premier Dalton McGuinty said Tuesday.

"We're not going to deal with our significant deficit in an unthinking way," McGuinty said.

"We're not just going to simply cut everything -- that is unthinking. Neither are we going to pretend that we don't have a problem on our hands, because we do, and it is real, and to pretend otherwise would be unthinking."

The province is grappling with an unprecedented deficit of nearly $25 billion, and has launched a review of all programs and services to ensure money is being well-spent.

That review will result in some cuts, but those won't be specified until the March budget. Meanwhile, the province moved forward Tuesday with a $1.5-billion plan for full-day kindergarten for all four- and five-year-olds.

"You're waiting for the other shoe to drop? It will, in due course, but that's not the announcement I'm making here today," McGuinty said when asked how he'll pay for the plan.

"Can't have everything. We're settling on priorities," McGuinty said.

"Because we are doing this it means we won't be able to do some other things and it may mean that we're going to do less of some things that we're already doing right now."

Opposition Leader Tim Hudak blasted McGuinty for what he considers foot-dragging, saying now is a time for action, not prolonged reflection.

"Dalton McGuinty is absolutely paralyzed when it comes to the biggest deficit in the history of our province," he said.

"Ontario families expect a premier to lead, not to freeze in place."

McGuinty countered that his government has been doing a lot of work behind the scenes and will soon move to public consultations so that people can understand -- and weigh in -- on the upcoming changes.

Finance Minister Dwight Duncan has already had discussions with several caucus colleagues and is planning consultations in various communities.

Duncan said he wasn't sure what McGuinty meant by his comment about another shoe dropping, but added he suspects it has to do with the next budget and the process through which the province will get back to balance.

"What we've talked about is a process for arriving at a balanced budget and you have to factor in a number of these: growth in the economy, time, how long you're going to take, the approach you're going to take," Duncan said.

But he cautioned against trying to guess where the cuts may be, adding those decisions haven't yet been made.