Ontario projects $38.5B deficit due to COVID-19

Ontario is projecting its budget deficit will jump to $38.5 billion this year due to COVID-19.

The government provided a fiscal update Wednesday morning.

The previous fiscal update delivered in March projected the deficit would reach $20.5 billion in 2020-2021.

The increase is attributed to higher spending in the health-care sector, economic stimulus measures, and billions less in revenue.

“Dealing with COVID-19 wasn’t a choice for any of us, but how we responded was,” said Minister of Finance Rod Phillips.

“From the very beginning, we chose to do whatever was necessary to protect the people of Ontario from this pandemic and support them as they deal with the unprecedented impact on their lives.”

In March, the province announced a $17 billion spending package to provide aid during the global pandemic.

The government now says its COVID-19 relief spending will total $30 billion by the end of the fiscal year.