Ontario Premier Doug Ford speaks after signing an agreement with the Webequie First Nation at Queen's Park in Toronto on Oct. 29, 2025. Photo by THE CANADIAN PRESS/Nathan Denette

Ontario’s budget shortfall is forecast to improve on stronger tax revenues, though the trade war with the U.S. is keeping the government cautious on its economic growth predictions.

The government’s deficit is expected to be $13.5 billion in the fiscal year ending March 31, down from the $14.6 billion projected in May. The government still expects to slash that figure to $7.8 billion the following year, it said in a fiscal update released Thursday.

The province’s finance department doesn’t project a balanced budget until the 2027-2028 fiscal year, when it’s forecasting a $200 million surplus.

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