Ontario posts deficit as health care, education spending surges

Ontario ended the 2025-26 fiscal year with a $13-billion deficit, outperforming the government’s budget forecast, as spending on health care, education and infrastructure climbed to historic levels amid economic uncertainty and ongoing concerns about the impact of U.S. tariffs .

The province released its final audited financial statements Thursday through the 2025-26 Public Accounts, reporting total program spending of $220.9 billion, an increase of $10 billion, or 4.7 per cent, compared with the previous fiscal year.

“Our government is delivering on our plan to protect Ontario by building the most competitive, resilient and self-reliant economy in the G7,” Treasury Board President Kinga Surma said in a statement.

The government said the improved fiscal outcome was driven by stronger-than-expected tax revenues, increased income from government business enterprises and other non-tax revenue sources.