Ontario on track for years of post-pandemic deficits without new policy: FAO

TORONTO — Ontario’s fiscal watchdog says the province is on track for years of post-pandemic deficits barring a change in government policy.

The Financial Accountability Officer says in a report today that a series of factors including the pandemic and aging demographics will contribute to the deficits.

The FAO says Ontario will have a $35.5 billion deficit in 2020-2021 that is projected to drop to $16 billion by 2024-2025.

But the FAO says barring any service cuts or tax increases, the province will continue to have annual deficits at that level going forward.

By law, when Ontario is in deficit, it must develop a recovery plan that charts a path to balanced budgets.

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The province is expected to deliver its 2021-2022 budget by March 31.

© 2021 The Canadian Press

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