There’s a disagreement regarding the size of the Ontario government’s spending deficit.
Finance Minister Peter Bethlenfalvy claims that better revenues will bring this year’s deficit down to $13.4 billion.
This figure is an improvement over what was predicted in last spring’s budget.
However, the Financial Accountability Officer has different estimates.
It expects the deficit to hit $11.1 billion, which is actually higher than its initial prediction.
The FAO arrives at this number by considering a projected 3.2% rise in spending along with a 1.2% drop in revenue.
Both the Finance Minister and FAO agree that Ontario’s Gross Domestic Product, which measures economic activity, has slowed down as U. S. trade tariffs start to affect exports and business investments.
The FAO anticipates that economic growth will remain stable through 2026 before experiencing a slight downturn between 2027 and 2030.
They also predict ongoing deficit spending during this time but expect it to decrease to $6.3 billion by 2029-30.
The FAO mentions that various risks and uncertainties could influence its outlook.
If strong economic growth occurs, it might reduce the province’s deficit to as low as $2.3 billion by 2023.
A weaker economy could lead to a $10.1 billion deficit instead.
Bethlenfalvy plans to unveil a new provincial budget by March 31, 2026.
Randy Thoms is a veteran news broadcaster with over 40 years’ experience. He is based in Fort Frances and covers stories across northwestern Ontario. Contact Randy at thoms. randy@radioabl. ca.
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