TORONTO — Ontario’s financial watchdog says it projects budget surpluses in the province for the foreseeable future.
A report today from the Financial Accountability Office of Ontario says strong revenue growth, even though it is projected to slow from its current pace, is set to outpace spending up to 2027-28.
The FAO says it projects a $100-million surplus at the end of this fiscal year, and an $8.5-billion surplus in 2027-28.
Finance Minister Peter Bethlenfalvy announced last month that Ontario ended the last fiscal year with a $2.1-billion surplus, a far cry from the $33-billion deficit projected in the budget, thanks to inflation and a strong economy.
The FAO also says that the government’s current spending plan contains $40 billion in funding shortfalls over six years, though it also contains $44 billion in unallocated contingency funds, which could be used to address those shortfalls.
Otherwise, the surpluses would slow the accumulation of net debt and would see the net-debt-to-GDP ratio decline to 31.5 per cent in 2027-28, the lowest since 2008-09.
This report by The Canadian Press was first published Oct. 27, 2022.
