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12h ago

Ontario Posts $13‑Billion Deficit as Program Spending Reaches Record $220.9 Billion

Revenue gains and lower debt costs narrowed the shortfall, raising questions about whether concentrated spending in health and education will meet rising demand before the fall fiscal update.

Finance Minister for Ontario Peter Bethlenfalvy, left, yells at the opposition during the last sitting day in the legislature before summer break at Queen's Park in Toronto on Tuesday, June 2, 2026.
Ontario Premier Doug Ford speaks during a press conference at the facility of the pharmaceutical company Sanofi in Toronto on Wednesday, Sept. 16, 2026. THE CANADIAN PRESS/Arlyn McAdorey
John Lohr, provincial finance minister said the province is working to slow spending as the provinces deficit continues to grow
Ontario Minister of Finance, Peter Bethlenfalvy speaks with the media prior to Premier Doug Ford’s special address on the next chapter of Ontario’s plan for economic growth at the Toronto Region Board of Trade’s Annual Policy Priorities-Setting Session in Toronto, Ontario on Thursday, September 10, 2026. (Peter Power/Postmedia News)

Overview

  • The province’s audited 2025-26 Public Accounts show a $13-billion deficit and total program spending of $220.9 billion, an increase of $10 billion year over year.
  • Health spending rose most sharply, increasing by $6.6 billion to fund hospitals, home care and long-term care, while education climbed $2.3 billion and infrastructure rose $1.9 billion.
  • The government attributed the improved outcome to stronger-than-expected tax receipts, higher income from government business enterprises and $747 million in lower-than-forecast interest and debt servicing costs.
  • Total revenue was reported at $223.3 billion, down from the prior year because that year included a one-time tobacco settlement and because federal tax timing changes altered revenue patterns.
  • The Financial Accountability Office warned that health, long-term care, education and related sectors make up roughly 73 percent of planned spending and that current plans may not be sufficient to keep pace with population growth and service demand ahead of the Fall Economic Statement.