Toronto

Ontario deficit down to $1.9 billion, with expenses up by $1.1 billion

Ontario's finance minister says the province's deficit for this fiscal year will be $1.9 billion.

Provincial government says it has used $600 million of the previously $1-billion reserve

Ontario Finance Minister Charles Sousa released the province's third-quarter finances on Tuesday. (THE CANADIAN PRESS)

Ontario's finance minister says the province's deficit for this fiscal year will be $1.9 billion.

The government had projected $4.3 billion in last year's budget, and the lower deficit puts the government closer to presenting a balanced budget this spring.

Finance Minister Charles Sousa released the province's third-quarter finances on Tuesday and said revenue was $2.5 billion higher than projected and the net-debt-to-GDP ratio has fallen to 38.3 per cent from 39.6 per cent.

The finances show the government also used $600 million of the previously $1-billion reserve.

Expenses increased by $1.1 billion, spending that includes health care and an eight-per-cent rebate on electricity bills.

Spending on interest on the province's more than $300-billion debt was also lower than projected.