Province releases financial update showing deficit still at $1.3 billion

Finance Minister Peter Bethlenfalvy released a financial update on Monday showing the province spent about $766 million more than planned in the first quarter of this fiscal year.

However, since nearly all of that new spending came from contingency funds the province’s bottom line is the same.

The deficit projection for 2023-24 remains at $1.3 billion.

About half  the new spending was to develop industrial land for large-scale manufacturing, with money also going toward policing, flood protection, affordable housing and the wine sector.

The vast majority of the $766.6 million comes from the contingency fund, which the budget set at $4 billion.

“The First Quarter Finances report shows that our government’s targeted, responsible approach is the right plan to build and support growing communities across Ontario,” said Bethlenfalvy. “The people of Ontario can have confidence that this government is making responsible decisions to deliver on our Plan to Build by supporting people and businesses today while laying a strong fiscal foundation for future generations.”

Bethlenfalvy also says the province is not immune to any potential economic slowdown.

He says the Bank of Canada interest rate policies continues to remain an issue.