Toronto — Ontario has posted a deficit of $1.1 billion for the 2024-25 fiscal year, far lower than the $9.8 billion shortfall projected in the province’s 2024 Budget. The final audited financial results, released Thursday in the 2024-25 Public Accounts, highlight stronger-than-anticipated revenues and record levels of investment across health care, education, infrastructure, and workforce training.
The Treasury Board Secretariat said the smaller deficit was largely driven by higher-than-forecast economic growth, which boosted tax revenues, along with increased income from the broader public sector. Total revenues reached $226.2 billion, up 8.2 per cent from the previous year.
Deficit Narrower Than Forecast
“Ontario’s historic investments are helping protect Ontario’s economy and workers even as we continue to maintain a strong financial position in the face of tariffs and economic uncertainty,” said Caroline Mulroney, President of the Treasury Board. “These investments, including highways, public transit, schools and homes, will build the infrastructure our province needs to support strong and safe communities, keep workers on the job and drive economic growth.”
Mulroney emphasized that Ontario remains vigilant in guarding against external pressures, including the impact of U.S. tariffs, while retaining flexibility to respond with targeted measures aimed at lowering costs for households and businesses.
The government also reported that interest and debt servicing charges were $1.3 billion lower than forecast, reflecting reduced borrowing costs.
Record Spending Across Key Sectors
Total program spending climbed to $212.1 billion, an 8.7 per cent increase—or $16.9 billion—over the prior year. Infrastructure expenditures grew by nearly 24 per cent, continuing a pattern of 20 per cent-plus annual growth for a second year. Officials framed the increase as critical to sustaining job creation and supporting long-term economic competitiveness.
Health care remained the largest area of expenditure, with $91.6 billion allocated in 2024-25, a 7.2 per cent increase. The funds were directed toward expanding workforce capacity, reducing wait times, and providing more care options in community settings.
The education sector saw spending rise 3.3 per cent to $38.4 billion, including funds to modernize schools and build new facilities. Postsecondary education investments grew 6.9 per cent to $14.1 billion, with a focus on preparing students for careers in high-demand fields.
“The 2024-25 Public Accounts show the government’s continued commitment to protecting Ontario while taking a responsible and targeted approach to the province’s fiscal plan,” said Peter Bethlenfalvy, Minister of Finance. “By making strategic investments we are transforming Ontario into the most competitive place to invest in the G7, while building a more self-reliant and resilient economy in this time of economic uncertainty.”
Fiscal Responsibility and Market Confidence
The report underscores Ontario’s efforts to balance ambitious infrastructure and program investments with fiscal prudence. Officials pointed to Ontario’s improved credit standing in 2024, when S&P raised the province’s rating to AA- and Morningstar DBRS upgraded it to AA.
The Public Accounts also noted that this marks the eighth consecutive year Ontario has received a clean audit opinion from the Auditor General, reinforcing the province’s commitment to transparency and sound financial reporting.
Looking Ahead
As part of its commitment to regular updates, the government said it will release the 2025 Ontario Economic Outlook and Fiscal Review, known as the Fall Economic Statement, on or before November 15, 2025.
For now, the Treasury Board Secretariat maintains that Ontario’s fiscal position leaves it well-placed to respond to uncertainty while advancing major projects. With over $212 billion in annual spending and a sharp reduction in the projected deficit, the government is positioning itself as both an aggressive investor in public services and infrastructure, and a disciplined fiscal manager.
