Ontario records $13B deficit, reports higher spending in 2025-26

Ontario recorded a $13-billion deficit for the fiscal year ending March 31, 2026, according to the province’s newly released audited Public Accounts.

The deficit is lower than the $14.6-billion projection in the 2025 Budget. The province says stronger-than-expected tax revenues and higher income from government business enterprises helped improve the fiscal result.

Ontario spent $220.9 billion across all programs in 2025-26, up 4.7 per cent, or $10 billion, from the previous year.

Health-care spending increased by $6.6 billion, or 7.2 per cent, while education spending rose by $2.3 billion, or 6.1 per cent. Infrastructure spending also increased by $1.9 billion, supporting hospitals, transit, highways, broadband and housing-related infrastructure.

The province reported $223.3 billion in revenue, down $1.6 billion from the previous year, "largely attributable to one-time revenue recognized in 2024–25 from the tobacco legal settlement and lower revenues reported by the broader public sector."

Ontario says it will release its 2026 Economic Outlook and Fiscal Review, or Fall Economic Statement, by November 15, 2026.