Ontario deficit now projected at $13.1B

Higher than expected revenues have led Ontario to project a deficit of $13.1 billion this fiscal year, which is $8.4 billion lower than expected, Finance Minister Peter Bethlenfalvy says.

Thestar.com
Feb. 15, 2022
Kristin Rushowy

Higher than expected revenues have led Ontario to project a deficit of $13.1 billion this fiscal year, which is $8.4 billion lower than expected, Finance Minister Peter Bethlenfalvy says.

In releasing the province’s 2021-22 third-quarter fiscal update on Monday, Bethlenfalvy cited stronger economic activity and the resulting tax revenue for the resilience of Ontario’s economy despite the challenges of the ongoing COVID-19 pandemic.

“We have made important progress in our fight against COVID-19 through record investments to protect people’s health and support our economy,” Bethlenfalvy said. He warned, however, that while “Ontario’s economy is getting stronger, there is still work ahead.”

The government’s “plan for recovery will build Ontario with investments in new highways and hospitals, supports for workers and employers, and measures to put more money into the pockets of families and seniors,” he added.

The province has spent $2.3 billion on hospitals, staffing and COVID-19 business supports and relief. Bethlenfalvy said about $500 million is left to be spent in pandemic-related funding by the end of March.

NDP finance critic Catherine Fife said the Ford government is not spending enough on health care, public health and education, especially during the pandemic.

“Families need more nurses and health-care workers in their communities, and more teachers and education workers in their children’s schools,” said Fife.

“Families are expecting their government to spare no expense to clear the catastrophic surgery backlog, which will take years to get through while people are waiting in pain. There was nothing (in the fiscal update) ... about tackling the big challenges facing families right now.”

Bethlenfalvy must table the 2022-23 budget before the end of March. He would not reveal any of its details, other than to say he is looking at “a range of options ... to put more money in the pockets” of Ontarians.