TORONTO – Ontario’s deficit has narrowed to $11.3 billion for the year that just ended, about $400 million less than predicted in last year’s budget, Finance Minister Charles Sousa said Tuesday.
But a sluggish economy means there won’t be as much money in government coffers, he said. So revenue will be $3.5 billion lower in the current fiscal year, which started April 1, than was forecast last year.
“Our economy is growing more slowly than anticipated and less than experts expected,” he said during a lunch speech to the Canadian Club of Toronto.
“Revenues are not only significantly lower than forecasted in 2010, they’re even lower than we expected just last year.”
The governing Liberals are predicting that Ontario’s economic growth will average 2.1 per cent between 2014 and 2035, lagging behind the national or U.S. average.
Sousa said the government still plans to balance the books in 2017-18, but the roadmap may change.
“As a result of federal cuts and slower economic growth around the world, short-term deficit targets over the next year or two may not be met,” he said.
But the Liberals will preserve Ontario’s cherished public services and make investments to create jobs and stimulate the economy, he said.
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