Ontario Releases 2026-27 First Quarter Finances, Deficit Unchanged

TORONTO, Ont. — On August 14, 2026, the Ontario government released its 2026–27 First Quarter Finances, providing an update on the province's economic and fiscal outlook since the 2026 Ontario Budget. Finance Minister Peter Bethlenfalvy stated that the government's prudent fiscal management has enabled strategic investments and tax cuts, despite ongoing global economic uncertainty and the impacts of U.S. tariffs.

Fiscal Stability Amidst Uncertainty

The report indicates that while private-sector forecasts for Ontario's real GDP growth in 2026 have moderated, the government's fiscal outlook remains largely unchanged. Revenue is projected to improve to $232 billion, slightly higher than the 2026 Budget's expectation, and the net debt-to-GDP ratio is anticipated to remain stable at 37.7 per cent. Program expense is projected to be $227.1 billion, with the deficit projection holding steady at $13.8 billion.

Outlook

The Ontario government plans to provide its next update on the province's economic and fiscal outlook in the 2026 Ontario Economic Outlook and Fiscal Review later this year. The focus remains on protecting workers and businesses from external economic pressures while building a more resilient and self-reliant economy for the long term.