The Government of Ontario says it expects its budget deficit to be about $700 million smaller than previously forecast as the economic recovery boosts tax revenue and the province receives larger transfers from the federal government.
The government of the most populous province in Canada now sees its deficit for the current fiscal year ending March 31, 2022, at $32.4 billion compared to $33.1 billion estimated in the budget released in March of this year.
Provincial revenues are forecast to rise to $156.9 billion from $154 billion previously projected. That includes a $1.95-billion boost from federal government transfers and $950 million of additional projected tax revenues, which is led by corporate profits and housing market strength.
Program expenses are expected to be $2.2 billion higher than the budget forecast of $175.2 billion. Ontario’s long-term borrowing plan will be for $53 billion, down from $54.7 billion previously anticipated.