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Ontario projects third-quarter fiscal deficit of $4.5 billion this year – Winnipeg Free Press

Posted on by Neons

TORONTO — Ontario expects to end this fiscal year with a $4.5-billion deficit, while remaining in a large contingency fund until then.

Finance Minister Peter Bethlenfalvi released the province's third-quarter finances on Monday, the last major fiscal update he will provide before the next budget is introduced by the end of March.

The current deficit forecast for 2023-24 is $4.5 billion, $1.1 billion lower than Bethlenfalvi's forecast in his autumn economic statement, but significantly higher than the $1.3 billion he expected during last year's budget.

Ontario Finance Minister Peter Bethlenfalvey attends a meeting at Queen's Park in Toronto on Thursday, November 2, 2023. Ontario predicts it will end this fiscal year with a $4.5 billion deficit and is also hanging on to large contingency funds. THE CANADIAN PRESS/Chris Young
Ontario Finance Minister Peter Bethlenfalvey attends a meeting at Queen's Park in Toronto on Thursday, November 2, 2023. Ontario predicts it will end this fiscal year with a $4.5 billion deficit and is also hanging on to large contingency funds. THE CANADIAN PRESS/Chris Young

Betlenfalvi said the $1.1 billion improvement was due to higher revenue, including money from taxes and the federal government, and lower interest costs on the province's debt due to higher interest rates.

“I'm pleased to report that inflationary pressures have eased somewhat for households across the province, providing much-needed relief to millions of Ontarians and their families,” he said at a press conference.

“These high interest rates from the Bank of Canada, as well as uncertainty about consumer price inflation, threaten Ontario's economic outlook.”

Ontario has added some new spending since the fall economic statement, including $1.7 billion in health care and more than $700 million in support for the city of Toronto.