Ontario’s government reports that the province’s results for the 2011-2012 fiscal year included a deficit of $13 billion, which is $3.3 billion ahead of the projections in the 2011 budget.
Revenues came in at $109.8 billion, which is $500 million above the budget forecast, as higher-than-expected non-tax revenue more than offset the lower taxation revenue resulting from slower economic growth and lower-than-expected federal transfers.
Program spending rose by just 0.9% from the previous year to $122.7 billion, it reports. And, spending on programs and interest on debt was $2.2 billion less than forecast in the budget. Lower-than-planned spending was achieved in most ministries and program areas, including health care, the government notes.
The province also used a $700 million reserve built into the fiscal plan to reduce the deficit.
“While economic growth has returned to Ontario, it is more modest than we would like, so strong action is necessary to eliminate the deficit,” said Finance minister, Dwight Duncan. In 2011, Ontario’s economy expanded by 2.1%, as measured by growth in real GDP, which was below the 2.4% growth projection used in developing the 2011 budget.