Ontario is projecting a $32.4 billion deficit in 2021-2022, an improvement of nearly $700 million from the outlook presented in the 2021 budget.
Finance Minister Peter Bethlenfalvy released a First Quarter Financial update Thursday morning, the province’s fiscal and economic outlook as of June 30 and first since the release of the budget on March 24.
Bethlenfalvy says the forecasts have been revised significantly upwards, reflecting significant progress on COVID vaccinations and stronger than expected United States and global growth.
He also credits prudent fiscal management and higher than projected revenue due to a stronger 2021 growth forecast for the province.
“Although we are seeing positive economic signs, we cannot let up on our focus on getting through the pandemic, and protecting the province’s health, jobs and economy,” says Bethlenfalvy.
“We’ve always been clear that it would be growth that would fuel our return to a more sustainable fiscal position. The continued growth in employment and the modest deficit improvement projected in the ‘2021-2022 First Quarter Finances’ are evidence that our plan is working. But we will maintain our focus on the plan in the ‘2021 Budget’ to get us through this crisis.”
The next fiscal update will come November 15.
Highlights of the 2021–22 First Quarter Finances include:
-Projecting a deficit of $32.4 billion in 2021–22, an improvement of nearly $700 million from the outlook presented in the 2021 Budget.
-Updated 2021-22 revenue projections, $2.9 billion higher than forecast in the 2021 Budget, due to increased Government of Canada transfers and higher projected taxation revenues related to a stronger 2021 economic growth forecast.
-Setting aside $2.2 billion for the Time-Limited COVID-19 Fund, which will ensure the Province continues to maintain the flexibility necessary given the ongoing uncertainty related to the pandemic and future pace of economic recovery.
