Ontario’s fiscal watchdog says the fiscal deficit for this fiscal year could reach $ 12.3 billion.
This is half a billion dollars more than predicted before the election, but this amount is less than that predicted by the Progressive Conservatives.
The Financial Accountability Officer Peter Weltman says that apart from reversing certain tax payments, and the cap-and-trade program, many tax increases, including a weaker economic forecast, added to the change.
Expressing his views on the economy and budget, Weltman said that without further policy changes, the deficit would exceed $ 16 billion by 2022-23.
Weltman said that there are a number of policy changes needed to balance the budget, which will have a significant impact on the people and business of Ontarians.
Just weeks before the provincial election, FAO’s spring report was issued which said that the deficit would jump to $11.8 billion in 2018 as an outcome of higher expenses in the budget offered by the then- government (Liberals), in addition to weak revenue gains.
The Liberal government had predicted a deficit of $6.7 billion, an amount that was also called into question by Ontario’s auditor general.
The FAO says its prediction did not include any election promises that the government has yet to act on or announce.
-Harleen Sandhu
