Ontario Ends Fiscal Year with Lower Deficit, to Implement Controlled Hiring Freeze
Ontario concluded the 2024-25 fiscal year with a significantly reduced deficit compared to initial projections, as announced by Treasury Board President Caroline Mulroney. Despite this positive outcome, the province is taking steps to manage growing agencies through a modified hiring freeze.
Public accounts revealed that Ontario closed the year with a deficit of $1.1 billion, a stark contrast to the forecasted $9.8 billion deficit in the 2024 budget. Mulroney emphasized the need for controlled growth within provincial agencies, leading to the decision to enforce a hiring freeze across all agencies in Ontario.
The staffing levels at Ontario’s 143 agencies, including notable names like Metrolinx and the Liquor Control Board of Ontario, have expanded by five percent in recent years. Mulroney stressed the importance of aligning agency growth with taxpayers’ interests and implementing a culture of fiscal responsibility with hiring decisions.
While not a complete halt, the hiring freeze will now require agencies to seek government approval for any new hires, following a similar model to the existing public service freeze. This measure extends to provincial boards and commissions as well.
Ontario’s revenue for the past fiscal year reached $226.2 billion, marking a $17.2 billion increase from the previous year. Finance Minister Peter Bethlenfalvy attributed this improvement to robust tax revenues from better-than-expected economic growth and increased sector revenues.
Bethlenfalvy highlighted the province’s prudent financial management, resulting in $1.3 billion less borrowing costs than anticipated. These savings are earmarked for essential priorities such as the economy, job creation, infrastructure, and managing the cost of living.
While Ontario’s debt is projected to hit half a trillion dollars by 2027, Bethlenfalvy defended the economic outlook, pointing to a growth of $350 million in the economy under Premier Doug Ford’s leadership. He emphasized the strategic nature of the province’s $220-billion infrastructure plan as an investment in crucial long-term assets.
The financial landscape also benefited from Ontario’s share of a settlement with tobacco companies, noted by Liberal finance critic Stephanie Bowman. However, New Democrats’ finance critic Jessica Bell expressed concerns about the province’s spending priorities, urging a focus on improving services for Ontarians rather than inflating administrative ranks.
Keyphrase: Ontario fiscal year