#FordNation: Ontario’s projected deficit drops to $9B from $10.3B

Finance Minister Rod Phillips tabled the fall economic statement in the legislature on Wednesday and emphasized the provincial treasury is “back on sound footing.”

“Today, I am pleased to report that this government is beating its deficit target by $1.3 billion this year,” Phillips told the house.

That reduction in the shortfall — from a projected $10.3 billion to $9 billion — is coincidentally the same amount of new spending that was announced.

“We are also investing an additional $1.3 billion in critical services in this fiscal update,” the treasurer said, noting spending is up $400 million in health care and $200 million on education since the April budget.

That includes previous government climbdowns, such as the reversal of planned cuts to municipal public heath unit funding.

The improvement in the bottom line was fuelled by a growing economy that has helped the government take in $1.6 billion more than expected in corporate and personal income taxes.