The Ontario government has released the Third Quarter Update on the province’s finances. Minister Peter Bethlenfalvy offered an optimistic perspective, despite potential headwinds on the horizon.
- Ontario’s real GDP remained unchanged in the third quarter of 2023, with a projected deficit of $4.5 billion for the fiscal year 2023-24.
- The deficit improvement is attributed to increased revenue and lower interest on debt expenses.
- Revenues for 2023-24 are projected to be $202.7 billion, $1.6 billion lower than forecasted in the 2023 Budget.
- Overall program expenses are projected to be $193.4 billion, $2.8 billion higher than forecasted in the 2023 Budget.
- Interest on debt expense is projected to be $12.9 billion, lower than previous forecasts due to reduced borrowing costs.
- The net debt-to-GDP ratio is projected to be 38.0% in 2023-24.
- Key changes in revenue projections include increases in Personal Income Tax, Sales Tax, and decreases in Corporations Tax.
- Total expense is projected to be $206.3 billion, with significant spending in health sector supports, Toronto city support, and college sector investments.
- Infrastructure expenditures are detailed across various sectors, with a total of $20.4 billion allocated for infrastructure projects.
- Ontario’s long-term public borrowing requirement for 2023-24 has decreased by $1.1 billion compared to previous forecasts.
- Green Bonds remain a core component of Ontario’s borrowing program, supporting public transit and sustainable infrastructure projects.
