Queen's Park is seen on this undated photograph. (Craig Wadman)
A brand new report from Ontario's fiscal watchdog predicts smaller finances deficits over the following few years in comparison with these within the authorities's final financial replace as a result of an improved income forecast.
The Monetary Accountability Workplace's report issued Tuesday on the province's financial outlook mentioned Ontario's deficit is anticipated to say no to $2.8 billion by the tip of the 2023-24 fiscal 12 months, down from $16 billion this fiscal 12 months.
That is in comparison with the federal government's predicted finances deficit of $11.4 billion.
Monetary Accountability Officer Peter Weltman mentioned the distinction "is essentially as a result of a big change within the income forecast."
"That is actually the place the majority of this comes from," Weltman mentioned at a digital information convention. The report additionally notes that a "decrease projection for curiosity on debt expense" by the watchdog's workplace contributed to the $8.6 billion distinction.
The watchdog report initiatives that revenues can be $7.6 billion larger by 2023-24 than figures within the authorities's plan.
The report makes whole spending projections much like the federal government's for the fiscal 12 months ending in 2024. However it highlights shortfalls for applications in well being, training, justice, postsecondary training and social providers in authorities's plan, which it says may very well be offset utilizing "vital unallocated funds."
Weltman mentioned quite a lot of the unallocated funds are "COVID-earmarked cash" that did not have a specified allocation as of Jan. 20. The numbers usually are not included within the watchdog's projections till the federal government specifies its plans for the cash, and Weltman mentioned "the federal government can do actually what it desires to do" with the funds.
"(Authorities) can create new applications, it may improve present applications, it may fund these applications shortfalls or it may simply maintain on to it and scale back the deficit," he mentioned.
The Monetary Accountability Workplace's report comes forward of the federal government's election-year finances that is anticipated to come back earlier than the tip of subsequent month.
This report by The Canadian Press was first revealed Feb. 8, 2022.
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