Ontario projects $7.5B budget deficit for 2016
The province's net debt is still projected to nearly hit $300 billion by the end of March 2016
TORONTO—Ontario is projecting that its deficit for next year will be $7.5 billion, as the Liberal government maintains it can eliminate the deficit by 2017-18.
The deficit currently sits at $10.3 billion and in the spring budget, the government predicted the 2015-16 deficit would be $8.5 billion.
In the fall economic update, the government says non-tax revenue, including the net revenue from the recent Hydro One initial public offering, is projected to be about $1.1 billion higher than in the budget.
Interest on debt is also now forecast to be $140 million below the estimate in the budget because of low interest rates.
The province’s net debt is still projected to nearly hit $300 billion by March 31, 2016, though the current projection is now slightly lower than the estimate in the budget.