Ontario and Nova Scotia Report Rising Provincial Deficits

The Province of Ontario and the Government of Nova Scotia both reported substantial fiscal deficits for the 2025-26 fiscal year, citing increased program expenses in health and education.

Ontario revealed a $13 billion deficit, a sharp increase from the $1.1 billion deficit recorded in 2024-25. While the figure was lower than the $14.6 billion originally projected, the province saw a $10 billion rise in program expenses, including $97.5 billion for health care and $40.1 billion for education. Higher-than-expected revenues from the Liquor Control Board of Ontario and the Ontario Lottery and Gaming Corporation helped offset some of these costs.

In Nova Scotia, the government closed the fiscal year with a record-high $1.4 billion deficit, as $19.4 billion in spending outpaced revenues of just under $18 billion. The province spent a record $1.9 billion in additional appropriations—spending approved by the cabinet without a legislative vote. Finance Minister John Lohr defended these expenditures as necessary for flexibility, citing wildfire emergency management and public works.

Opposition leaders Iain Rankin and Lisa Lachance criticized the Nova Scotia government for bypassing the legislature and failing to control departmental spending. The province's projected deficit for 2026-27 has already risen to $1.44 billion, driven by increased utilization of emergency services and long-term care.