Ontario has released its final audited financial results for the fiscal year that ended March 31, 2026, showing a deficit smaller than originally forecast even as the province increased spending across major public services.
The 2025-26 Public Accounts show total program spending rose 4.7 per cent, reaching $220.9 billion, an increase of $10.0 billion from the prior fiscal year. The province attributed the growth largely to higher investment in health care, education and infrastructure.
Spending Increases Across Key Sectors
Health care investment rose by $6.6 billion, or 7.2 per cent, compared with the previous fiscal year, while education spending increased by $2.3 billion, or 6.1 per cent. Infrastructure investment climbed by $1.9 billion, which the province said supported hospitals, public transit, highways, broadband connectivity and housing-related construction.
Kinga Surma, President of the Treasury Board, said the government is pursuing a plan to strengthen Ontario’s economy while continuing to invest in health care, education, infrastructure, justice and other public services.
Revenue Dips While Deficit Shrinks
Total revenue for the year came in at $223.3 billion, down $1.6 billion, or 0.7 per cent, from the prior year. The province said the decline was largely due to one-time revenue recognized in 2024-25 from a tobacco legal settlement, along with lower revenue reported by the broader public sector. Taxation revenue was also affected by the federal government’s enactment of Bill C-15 on March 26, 2026, which included accelerated capital cost allowance measures.
Despite the revenue decline, Ontario recorded a $13.0 billion deficit for the year, an improvement from the $14.6 billion deficit projected in the 2025 Budget. The province said the smaller-than-expected shortfall reflected stronger-than-anticipated tax revenue and higher income from government business enterprises and other non-tax sources. Interest and debt servicing charges also came in $747 million below the 2025 Budget forecast, which the province attributed to lower borrowing costs and higher-than-forecast returns from its holdings of its own bonds.
Fiscal Approach Amid Tariff Uncertainty
Peter Bethlenfalvy, Ontario’s Minister of Finance, described the results as reflecting a prudent and targeted fiscal approach during a period of global economic uncertainty and tariff-related risks. The province said it is continuing to pair service spending with measures intended to support investment and jobs, including tax and fee relief valued at $12.0 billion annually and a $236 billion infrastructure plan.
Ontario said it plans to release its 2026 Ontario Economic Outlook and Fiscal Review, known as the Fall Economic Statement, on or before November 15, 2026.
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