Ontario’s deficit came in better than expected for fiscal 2013, as it combined the use of a $1 billion reserve and stricter expense control efforts to help offset an unexpected revenue decline, the government announced.
The final deficit tally for 2013-2014 was $10.5 billion, which the government says was $1.3 billion lower than projected in the 2013 budget, and $0.8 billion lower than the interim projection in the 2014 budget.
Total expenses came in at $126.4 billion, which is $1.2 billion lower than in the 2013 budget forecast. The government attributes this primarily to expense control measures including a fourth quarter spending freeze. Revenue was below forecast by $0.9 billion due to lower estimates of tax revenue for previous years, slower-than-projected economic growth, and a decline in federal transfer payments.
The province’s net debt-to-GDP ratio was 38.6% at the end of fiscal year, the government says, which is down from the 39.3% forecast in the 2013 budget. The government notes that it remains committed to reducing Ontario’s net debt-to-GDP ratio to its pre-recession level of 27% and to eliminating the deficit by 2017-18.
“Ontario’s deficit is now more than $800 million lower than the 2014 budget projection, making this the fifth year in a row we have beaten our deficit target,” said provincial finance minister, Charles Sousa. “Our government continues to control spending, while at the same time making targeted investments to grow the economy and create jobs. Our plan to eliminate the deficit includes annual program savings targets of $250 million for 2014-15 and $500 million for each of the next two years. Making every dollar count will help us balance the budget by 2017-18.”