Economics
Wynne Sends Ontario Back Into Deficits With Pre-Election Budget
- Budget gap will soar to a total of $25 billion over six years
- Moody’s says plan is credit negative, sees structural deficit
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Ontario plans to run budget deficits for the next six years, breaking a pledge to keep its books balanced as it boosts spending on everything from child care to mental health ahead of a provincial election in June.
After generating a surplus of C$642 million ($497 million) in 2017-18 -- the first in a decade -- the government of Canada’s most populous province is forecasting a budget gap of C$6.7 billion in the fiscal year starting April 1. Deficits will soar to a combined C$32 billion over six years, before reaching balance again in 2024-25, according to the budget released in Toronto on Wednesday.