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Financial Accountability Office presser Dec 10 2025

Financial Accountability Office offers different opinion on Ontario deficit

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A difference of opinion on the size of the Ontario government’s spending deficit.

Finance Minister Peter Bethlenfalvy says improved revenues will bring this year’s deficit to $13.4 billion.

That is better than what was forecast in last spring’s budget.

The Financial Accountability Officer has different numbers.

It predicts the deficit to reach $11.1 billion, higher than its original figure.

The FAO bases its number on a projected 3.2% increase in spending combined with a 1.2% decline in revenue.

Both the Finance Minister and FAO acknowledge that Ontario’s Gross Domestic Product, the measure of economic activity, has slowed as U.S. trade tariffs show their impact on exports and business investment.

The FAO forecasts economic growth to remain stable in 2026 before showing a slight decrease between 2027 and 2030.

It also predicts continued deficit spending until then, but lowering to $6.3 billion by 2029-30.

The FAO says numerous risks and uncertainties could impact its outlook.

Strong economic growth could leave the province with a deficit as low as $2.3 billion by 2023.

A weaker economy could result in a $10.1 billion deficit.

Bethlenfalvy is scheduled to release a new provincial budget by March 31, 2026.

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Kenora MP “Shocked” With Economic Update

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The MP for Kenora is shocked the federal government didn’t provide a recovery plan after announcing a projected $343-billion deficit during Wednesday’s economic update.

Eric Melillo claims the Liberals seem content to keep our economy on “life support.”

Melillo says Canada has the highest unemployment in the G7, lost its AAA credit rating, and the total debt has ballooned over $1-trillion.

The Conservative says we are the only G7 nation that doesn’t have a comprehensive plan to restart our economy.

“We would have really liked to see some kind of road map. Even suggestions of policies from the Liberals on how we can begin to shift away from the temporary COVID-19 measures,” Melillo says.

Melillo claims the fact the Liberals were running high deficits during the relatively good economic times put Canada in an even worse position to respond to the pandemic.

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DRHC Now Expecting Lower Deficit Than First Projected

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The Dryden Regional Health Centre is still projecting a deficit in their finances, but it isn’t quite as much as originally anticipated.

Chief Financial Officer Alex McCauley says when they did the initial budget they weren’t sure what to expect from the provincial government, but they eventually learned they would be getting a 1% increase.

McCauley says they were originally projecting around a $500,000, but after learning about their funding they are learning that it will be about $250,000

He also says they are currently looking into other cost saving measures such as Hydro rebates for small hospitals.