Ontario Deficit Projection: $38.5B

CBJ — Ontario Finance Minister Rod Phillips has revealed the province’s projected deficit will expand to a record $38.5 billion this year with an almost 7% decline in GDP.

The grim deficit forecast means the government will increase funding to combat the COVID-19 pandemic to about $30 billion for fiscal 2020-21.

It’s estimated that provincial tax revenues have already declined by about $11 billion this year due to a loss of more than one million jobs along with a loss in tax revenues from such items as gasoline, with people driving far less than usual.

The high infection rate of the coronavirus in the United States is also playing a big role in the misery, due to a huge impact on exports, supply chains and consumer confidence — which means most people are spending less.

Due to some businesses having to close operations during the height of the pandemic the Ontario government is giving companies until October 1 to pay their taxes.