The Ontario government is projecting a deficit of $12.9 billion for the 2022-2023 fiscal year, which it says is about $7 billion lower than expected, according to the province’s fall economic statement released today.
The province is expecting its deficit to decrease over the next two years, becoming about $8 billion next year before dropping down to $700 million in the 2024–25 fiscal year.
Government officials say a nearly $7-billion improvement in this year’s $19.9-billion deficit from the spring budget is largely due to higher nominal GDP and inflation.
Ministry of Finance officials say there is a high degree of economic uncertainty, and under a faster economic growth scenario Ontario could see a $9.2-billion surplus in 2024-25, while under a slower growth scenario, the deficit that year could be $8.5 billion….