On March 26, Ontario’s finance minister Peter Bethlenfalvy will announce the government’s next budget. Bethlenfalvy says the budget will outline the government’s efforts to “rebuild Ontario’s economy” without raising taxes or fees or putting more onerous burdens on businesses and municipalities.
Last month, Bethlenfalvy projected Ontario’s fiscal year will end with a deficit of $4,5 billion. This is significantly more than the $1.3 billion deficit forecasted in last year’s budget for the fiscal year 2023-24.
At the time, the government had budget surpluses projected for this upcoming year. It’s unclear if the higher deficit forecast will now push the province’s path to balance further into the future. The Ontario financial accountability officer says that the courts’ ruling on the public sector wage restraint, known as Bill 124, deemed unconstitutional, has resulted in billions of dollars in extra spending this year, as the government pays retroactive compensation for lost wages.
