Ontario deficit has shrunk by $3.3 billion, but return to balance still two years away
CTV
Ontario’s deficit for 2024-25 has shrunk by $3.3 billion since the Ford government released the provincial budget earlier this year, and the province says it expects that deficit to flip to a larger-than-expected surplus within the next two years.
Ontario’s deficit for 2024-25 has shrunk by $3.3 billion since the Ford government released the provincial budget earlier this year, and the province says it expects that deficit to flip to a larger-than-expected surplus within the next two years.
“Inflation and our growing economy have brought in unexpected tax revenues,” Finance Minister Peter Bethlenfalvy said in the government’s fall economic statement, titled “Building Ontario For You.”
The deficit for 2024-25 now stands at $6.6 billion, down from the $9.8 billion included in the 2024 budget. The province is now projecting a revised deficit of $1.5 billion for 2025-26 and a small surplus of $900 million in 2026-27.
That extra revenue comes from boosted sales tax revenue due to inflation, as well as changes to capital gains tax rules by the federal government.
Bethlenfalvy said that’s why the government can afford to give each taxpayer a one-time cheque of $200, expected to be mailed out early in 2025.
Those cheques, which the province says are intended to help Ontarians with the high cost of living, will cost $3 billion. The government says it’s not yet clear how much it will cost to administer the program.
Overall, the province is spending slightly more than projected in the budget, with a total spend of $218.3 billion, up from $214.5 billion.
