|Ontario's Economy:||Provincial Finances:|
|Projected Real GDP Growth, 2011||2.4%||2011–12 Deficit Projection||$16.3 billion|
|Avg. Private-Sector Growth, 2011||2.6%||2011–12 Revenue Plan||$108.5 billion|
|Projected Real GDP Growth, 2012||2.7%||2011–12 Expense Plan||$124.1 billion|
|Jobs since May 2009||233,400||2011–12 Reserve||$0.7 billion|
|Jobs since October 2003||452,000||Accumulated Deficit-to-GDP Ratio (2003–04)||25.2%|
|Increase in Real GDP (2010 above 2003)1||8.1%||Accumulated Deficit-to-GDP Ratio (2010–11)||24.1%|
|Increase in Real Disposable Income (2010 above 2003)1||22.1%||Deficit-to-GDP Ratio (2010–11)||2.7%|
Since 2003, the government has improved education and health care, which had been neglected for too long. The government worked with Ontarians to deliver results in hospitals, schools and the electricity system, and did so while eliminating a $5.5 billion inherited deficit. In fact, until the global recession hit, Ontario’s financial performance was consistently strong.
The government has overachieved on its budget targets in five of the last seven fiscal years. It was only after the global recession hit, and the government took decisive actions to stimulate jobs and economic growth, that Ontario — like many jurisdictions around the world — experienced a deficit again.
Key indicators, such as real gross domestic product (GDP) and employment, are approaching pre-recession levels. The province has recovered 91 per cent of the jobs lost during the global downturn and the economy is poised for a period of sustained growth.
As the economy recovers and turns the corner, the Province is well positioned to tackle the deficit. The government’s responsible plan to balance the budget is working.
The deficit for 2010–11 is now projected to be $3.0 billion lower than outlined in the 2010 Budget, an improvement of about 32 per cent from the 2009–10 deficit of $24.7 billion forecast in the fall of 2009. Over the next two years, the government is on track to improve on its deficit projections by $1.7 billion, for a total cumulative improvement of $4.7 billion over three years.
Beyond 2012–13, the government remains on track to meet the fiscal targets outlined in the 2010 Budget. This includes a $13.3 billion deficit in 2013–14, followed by steadily declining deficits and return to a balanced budget by 2017–18.