Ontario’s Financial Accountability Officer (FAO) says the province is not currently projected to balance its budget, with spending increasing and government revenue declining.
The province’s financial watchdog noted in a Feb. 11 report that the Ontario government’s deficit will increase from $1.1 billion in the 2024–2025 fiscal year to $11.1 billion this fiscal year. The report said this “significant” deficit increase is due to a 3.2 percent rise in spending combined with a 1.2 percent fall in revenue, “primarily due to lower non-tax revenues.” In a recent update, the provincial government had set the projected deficit for 2025-26 at $13.4 billion.
