Ontario Deficit to Shrink Despite Trade Turmoil, Slow Growth

Ontario’s budget shortfall is forecast to improve on stronger tax revenues, though the trade war with the US is keeping the government cautious on its economic growth predictions.

The government’s deficit is expected to be C$13.5 billion ($9.6 billion) in the fiscal year ending March 31, down from the C$14.6 billion projected in May. The government still expects to slash that figure to C$7.8 billion the following year, it said in a fiscal update released Thursday.

The province’s finance department doesn’t project a balanced budget until the 2027-2028 fiscal year, when it’s forecasting a C$200 million surplus.

Ontario produces ...