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.
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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.
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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.
