The Financial Accountability Office of Ontario says the province’s economic growth is expected to slow sharply this year with a modest recovery beginning next year.
The FAO’s economic and budget outlook report projects a deficit of $2.5 billion in 2022-2023, but says that will improve to billion-dollar surpluses through the remaining years of its projection to 2026-27.
The province has said in its own fall economic statement that it projected a deficit of nearly $13 billion this year and smaller deficits over the next two years.
The FAO says the differences between its projections and the government’s is due to the accountability office’s lower spending projection combined with higher revenue projection.
It says the province will have $12.5 billion in excess funds over the next three years.
But the FAO says there is a $5-billion funding shortfall in the health-care sector and a $1.1 billion shortfall in education over that term.