The Canadian province of Ontario cuts its deficit forecast and prepares for the slowdown

Content of the article

TORONTO — Ontario on Monday forecast a lower budget deficit for the current fiscal year as robust economic growth boosted tax revenues in Canada’s most populous province, but it also expected activity to slow in 2023, according to a budget update.

The province said it expects a budget deficit of $12.9 billion for the 2022-23 fiscal year, compared to the $19.9 billion deficit projected in the April budget. The fiscal year ends on March 31.

Content of the article

The improvement was fueled by a $7 billion rise in projected revenue to $186.8 billion, helped by higher-than-expected tax revenues in 2021 and projected growth in nominal gross domestic product of 9.2 % for 2022, compared to 6.7% April.