Ontario has sharply lowered its projected deficit for next year, setting the stage for the government to easily be able to present a balanced budget ahead of a possible spring election.
Earlier this year, the government had forecasted a $4.6-billion deficit for 2025-26, but in its fall economic update presented today, that is now set at $1.5 billion.
The fiscal document shows revenues and expenses for that year are actually balanced, and the entirety of the projected $1.5-billion deficit is a $1.5-billion reserve.
Finance Minister Peter Bethlenfalvy says the province maintains its projection to a surplus by 2026-27.
The province attributes the more positive outlook since the spring budget to population growth, more jobs, reduced inflation, lower interest rates and a boost from changes to capital gains taxes from the federal government.
Premier Doug Ford and Bethlenfalvy have already announced two main affordability items from the fiscal update that serves …