Ontario Economy. Image credit: Facebook page
TORONTO — An update on Ontario’s economic and fiscal outlook was provided by the Government of Ontario today by releasing the 2022-23 Third Quarter Finances since the release of the 2022 Ontario Economic Outlook and Fiscal Review, a news release has said.
Overall, the report shows that Ontario’s economy continues to be resilient despite global geopolitical conflict, high inflation, rising interest rates and ongoing supply chain challenges, with real gross domestic product (GDP) estimated to have increased by 3.7 per cent in calendar year 2022.
“While today’s update is positive, Ontario and the rest of the world continue to face ongoing economic and geopolitical uncertainty,” said Peter Bethlenfalvy, Minister of Finance. “Though the road ahead may not be easy, our government’s Plan to Build is a responsible and prudent approach to getting Ontario through the challenges of today while planning for tomorrow.”
A deficit of $6.5 billion in the 2022-23 Third Quarter Finances projected by the government shows an improvement of $6.4 billion compared to the Province’s last published fiscal update.
Revenues in 2022–23 of $9.6 billion are projected to be higher than forecast, mainly reflecting stronger than expected taxation revenues resulting from higher net tax assessments for 2021 and prior years, based on new information from the Canada Revenue Agency (CRA) received since the 2022 Ontario Economic Outlook and Fiscal Review.
Similar to other provinces, Ontario incorporates updated information received from the CRA in its regular financial updates.
Overall program expense in 2022–23 is projected to be $188.6 billion, $3.4 billion higher than forecast in both the 2022 Budget and the 2022 Ontario Economic Outlook and Fiscal Review primarily due to significant one-time costs associated with ongoing land and land-related claims with Indigenous communities where Ontario is in active negotiations.
This additional spending has been partially offset by existing contingences within the fiscal plan, and savings.
“Our government is taking a targeted approach to deliver on our Plan to Build while laying a strong fiscal foundation for the province’s future generations,” said Minister Bethlenfalvy. “We will continue to be transparent with the people of Ontario by providing regular updates on the province’s economic and fiscal situation.”
The government plans to provide its next update as part of the 2023 Budget on or before March 31, 2023.
#Ontario; 2022-23ThirdQuarterFinances
