Ontario budget deficit projected to jump to $38.5 billion in 2020-2021

TORONTO — Ontario is projecting its budget deficit will jump to $38.5 billion this year due to COVID-19.

The government revised the projection upward in a fiscal update provided today at the provincial legislature.

The previous fiscal update delivered in March projected the deficit would reach $20.5 billion in 2020-2021.

The increase is attributed to higher spending in the health-care sector, economic stimulus measures, and billions less in revenue.

In March, the province announced a $17-billion spending package to provide aid during the global pandemic.

The government now says its COVID-19 relief spending will total $30 billion by the end of the fiscal year.

This report by The Canadian Press was first published Aug. 12, 2020.

The Canadian Press