Ontario is on track for a budget deficit this year, finance minister says

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Ontario is sliding back into a budget deficit after a small surplus last fiscal year, says Finance Minister Peter Bethlenfalvy.

In his fall economic statement tabled Monday at Queen’s Park, Bethlenfalvy said Premier Doug Ford’s Progressive Conservative government would have a $12.9-billion shortfall this fiscal year.“While we expect to return to deficit for 2022-23, we know that we can eliminate Ontario’s structural deficit with a responsible fiscal plan that is flexible enough to respond to uncertainty and risk,” said Bethlenfalvy.the Tories are extending a 5.

“We know that these are challenging times for many, but the most vulnerable are the ones that feel the impact of rising prices first,” the finance minister said. “At a time when food costs are rising, communities across the province are stepping up to support those in need — and so are we.” Along with the previously announced five per cent increase in Ontario Disability Support Program payments, Bethlenfalvy is going to increase the amount recipients can earn to $1,000 from the current $200.“Our government also recognizes that there are many ODSP recipients who cannot work and that they need our continued support,” he said, noting that starting next year increases will be tied to the rate of inflation.

That comes as the Tories are in contract negotiations with education workers and are under mounting pressure to increase wages for all public servants.But that should drop to a $700-million deficit in 2024-25, suggesting the Tories should balance the books in time for the June 2026 provincial election.Bethlenfalvy is far less bullish than the

 

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