The province’s fiscal watchdog is warning the Ford government may have no choice but to raise taxes next year to tackle Ontario’s record budget deficit.The Financial Accountability Office is projecting a deficit of $37.2B this year due to a sharp drop in revenue coupled with increases in spending.
“I’ve seen the report and we’re going to do it over a number of years and be thoughtful about it and responsible,” said Premier Doug Ford.
The FAO points out there is just over $9B in unused contingency funds that could be used to reduce the deficit.
Treasury Board President Peter Bethlenfalvy says now is not the time to balance the books.
“We have to file a budget by November 15 so we’re hard at work at that,” said Bethlenfalvy.