The Canadian province of Ontario on Thursday posted a CA$13.0 billion deficit in fiscal year 2025-26, below the CA$14.6 billion shortfall projected in the 2025 Budget.
Program spending rose 4.7% to CA$220.9 billion, while revenues declined 0.7% to CA$223.3 billion, wrote the province in a statement.
Healthcare spending rose 7.2%, reflecting higher funding for hospitals, home care and long-term care, while education spending increased 6.1%, said the province. Infrastructure spending also rose by CA$1.9 billion.
The better-than-expected deficit is the "result of a responsible fiscal approach and solid financial discipline, including stronger-than-anticipated tax revenues, increased income from government business enterprises and other non-tax sources," wrote the province in the statement.
Ontario is by far the biggest province in Canada, with more than 16 million residents accounting for nearly 40% of the country's population, according to the latest Statistics Canada data.
The province added it will release the 2026 Economic Outlook and Fiscal Review, also referred to as the Fall Economic Statement, on or before Nov. 15.