Ontario projects smaller deficit despite pressure from U.S. tariffs

Ontario is projecting a slightly smaller deficit for this year, despite the economic drag of U.S. tariffs, while pledging more money to help businesses find new markets and promising to develop a “tax action plan,” the province said Thursday in its fall fiscal update.

Finance Minister Peter Bethlenfalvy said the province now expects a deficit in 2025-26 of $13.5-billion, down $1.1-billion from the $14.6-billion in red ink predicted in his May budget. The government does not plan to balance the books until 2027-28.