07:13 AM EDT, 05/16/2025 (MT Newswires) -- Ontario's provincial budget deficit is projected to widen to $14.6 billion in the current fiscal year, or 1.2% of gross domestic product, from $6.0 billion in fiscal 2024/25, noted CIBC.

The wider deficit -- presented by Canada's wealthiest province late Thursday -- largely reflects expected weakness in revenues, due in part to an expected tariff-led slowdown in economic growth as well as measures to help support households and businesses, said the bank.

The fiscal projections are based on only modest economic growth in both 2025 and 2026, and include greater contingencies than last year's budget.

The province expects long-term borrowing of $42.8 billion in fiscal 2025/26, which would be a modest step down compared with last year due to heavy pre-borrowing, stated CIBC.

That additional pre-funding allows the province to reduce cash and cash-equivalent holdings by $12.0 billion this year, lowering overall funding requirements.