TORONTO — Ontario recorded a $13.0-billion deficit for the 2025-26 fiscal year while increasing spending on health care, education and infrastructure, according to the province’s newly released audited Public Accounts.
The Public Accounts, released Sept. 24, provide Ontario’s final financial results for the fiscal year ended March 31, 2026. The annual accounts are reviewed by the Auditor General and compare the province’s actual financial performance with its budget plans.
Ontario Program Spending Reaches $220.9 Billion
Ontario reported $220.9 billion in program spending during 2025-26, an increase of $10.0 billion, or 4.7 per cent, from the previous fiscal year. The increase reflected additional spending across major public services, including hospitals, schools and infrastructure.
Health-sector investments increased by $6.6 billion, or 7.2 per cent, compared with 2024-25. The additional spending supported hospitals, home care, long-term care and other health services.
Education-sector investments rose by $2.3 billion, or 6.1 per cent. Spending included child-care investments as well as funding to renew and improve existing schools and support new schools and expansions.
Infrastructure investments increased by another $1.9 billion, with funding directed toward hospitals, public transit, highways, broadband connectivity and infrastructure intended to support housing development.
“Our government is delivering on our plan to protect Ontario by building the most competitive, resilient and self-reliant economy in the G7, making significant investments in healthcare, education, infrastructure, justice and other services families are relying on,” said Kinga Surma, President of the Treasury Board. “In the face of unwarranted U.S. tariffs and global economic uncertainty, our government will continue to make the necessary investments to grow our province’s economy and protect the hardworking people of Ontario.”
Province Records $223.3 Billion in Revenue
Ontario reported total revenue of $223.3 billion for 2025-26, down $1.6 billion, or 0.7 per cent, from the previous fiscal year.
The province attributed the decline largely to one-time revenue recognized in 2024-25 from the tobacco legal settlement and lower revenue reported by the broader public sector. The government also said taxation revenue was affected by federal Bill C-15, enacted March 26, 2026, which included accelerated capital cost allowance measures.
Interest and other debt-servicing charges came in $747 million below the forecast contained in the 2025 Budget. The government attributed the difference to higher-than-forecast revenue from Ontario’s holdings of its own bonds and lower borrowing costs.
The province said it is also continuing with a $236-billion infrastructure plan and tax and fee measures that it estimates reduce costs for individuals and businesses by $12 billion annually.
Deficit Improves From 2025 Budget Projection
Ontario finished the fiscal year with a $13.0-billion deficit, $1.6 billion below the $14.6-billion deficit originally projected in the 2025 Budget. The government attributed the improvement to stronger-than-anticipated tax revenue, increased income from government business enterprises and other non-tax revenue sources. The original $14.6-billion forecast was also reported in the province’s earlier fiscal updates.
“The 2025-26 Public Accounts show we are taking a prudent, targeted approach to the province’s fiscal plan, while continuing to invest in critical public services and infrastructure,” said Peter Bethlenfalvy, Minister of Finance. “At a time of global economic uncertainty and ongoing tariff threats, our government is protecting jobs and supporting families by creating the conditions for investment, driving economic growth, and building long-term prosperity for future generations.”
Next Fiscal Update Due by November 15
The Public Accounts form part of Ontario’s annual financial reporting cycle and include consolidated financial statements, an annual report and supplementary information detailing government revenue and expenses.
The province’s next major fiscal update will be the 2026 Ontario Economic Outlook and Fiscal Review, commonly known as the Fall Economic Statement. The government says that report will be released on or before Nov. 15, providing an updated assessment of Ontario’s economy, revenues, spending and fiscal outlook.