Ontario’s budget watchdog said the province’s economy will continue to slow this year, mainly due to tariffs on exports and businesses cutting investments and hiring. However, the government of Premier Doug Ford insists that the economy is strong and on track to balance its budget within the timeline already announced.
That time frame is to return Ontario to a balanced budget in 2027 – 2028. But a new report from the Financial Accountability Office said real growth is projected to slow by almost a percent this year and next. Jeffrey Novak is Ontario’s Financial Accountability Officer.
“The FAO projects that the budget balance would deteriorate from an estimated deficit of $1,3 billion last year, to a deficit of $12 billion in this fiscal year,” Novak said.
Novak attributes that to a slowing economic outlook, due to the loss of temporary revenues as well as an increase in spending. Analysts said that the slowdown this year comes as tariffs from Washington have reduced demand for Ontario’s exports. A chief economist with the FAO said without the tariffs, there would be growth of around 1.7 percent this year and just under 2 percent next year. But he said the damage has already been done.
In the legislature, opposition Liberal finance critic Stephanie Bowman said the budget presented by the government isn’t worth the paper it’s printed on.
“We have to repay that money,” Bowman said. “Right now, Ontario has one of the highest debts per capita in the country. Right now, I think it’s about 30,000 dollars per person. That money has to be repaid.”
The FAO said it doesn’t expect the government to return to a balance without more measures to reduce spending or increase revenues. Meanwhile, the finance minister insists the province is on a clear path to balance the budget, and the FAO’s report is only a snapshot that doesn’t clearly show the entire financial picture.
The Ford government said it will release its own numbers in November.
