Arab Canada News
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Published: October 30, 2024
The deficit in Ontario for the period 2024-2025 has decreased by $3.3 billion since the Ford government released the provincial budget earlier this year, and the province says it expects this deficit to turn into a surplus larger than expected over the next two years.
Finance Minister Peter Bethlenfalvy said in the government's fall economic statement titled “Building Ontario for You”: “Inflation and our growing economy have led to unexpected tax revenues.”
The deficit for the period 2024-2025 is now $6.6 billion, down from $9.8 billion listed in the 2024 budget.
The province now expects a revised deficit of $1.5 billion for the period 2025-2026 and a small surplus of $900 million in the period 2026-2027.
This additional revenue comes from increased sales tax revenues due to inflation, as well as changes to capital gains tax rules by the federal government.
Bethlenfalvy said this is why the government is able to provide every taxpayer with a one-time check of $200, which is expected to be mailed out in early 2025.
These checks, which the province says are aimed at helping Ontarians cope with rising living costs, will cost $3 billion.
The government says it is not yet clear what the administrative cost of the program will be.
Overall, the province is spending slightly more than expected in the budget, with total spending at $218.3 billion, up from $214.5 billion.
In terms of growth, the province's real GDP is expected to contract to 0.9 percent this year, down from 1.4 percent in 2023.
The province expects it to rise to 1.7 percent in 2025 and 2.3 percent by 2026.
Employment growth has also decreased this year by 1.4 percent, compared to 2.4 percent last year.
This figure is expected to remain at 1.5 percent or lower from 2025 to 2027.
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