08:50 AM EDT, 03/27/2026 (MT Newswires) -- The province of Ontario is projecting a $13.8 billion deficit for FY26/27, or 1.1% of gross domestic product, slightly weaker than the $12.3 billion now expected for FY25/26, said Bank of Montreal (BMO).

A return to balance has been kicked out another year, to FY28/29, noted the bank after Thursday's release of the figures.

FY25/26 revenues are indeed coming in much stronger than initially expected, but a $6.7 billion improvement has been almost fully soaked up by increased spending, mostly in healthcare, stated BMO.

Ontario has a history of coming in well above expectations, but this round, the improvement has been limited by spending priorities, pointed out the bank.

Over the three years through FY27/28, the combined deficit is now running just over $11 billion deeper, highlighting the weaker overall budget position, added BMO.

Total borrowing is pegged at $47.2 billion for FY26/27, down from $58.6 billion in FY25/26.