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Ontario budget likely won’t be balanced after this fiscal year: watchdog

Premier Kathleen Wynne looks on as Ontario Finance Minister Charles Sousa delivers the 2017 Ontario budget at Queen's Park in Toronto on April 27, 2017.
Premier Kathleen Wynne looks on as Ontario Finance Minister Charles Sousa delivers the 2017 Ontario budget at Queen's Park in Toronto on April 27, 2017. THE CANADIAN PRESS/Nathan Denette

TORONTO – Ontario’s budget watchdog says the province’s budget will steadily deteriorate into deficit after this fiscal year.

The Liberal government delivered a balanced budget this year, and projects it will stay in the black for at least the next two years.

READ MORE: Ontario Budget 2017: Debt rises to $312B as province balances budget

But the financial accountability officer says in a report today that staying in balance will likely require additional fiscal measures.

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The report says this year there is strong tax revenue — such as income tax and land transfer tax due to a hot housing market — and there is one-time revenue, such as from the partial sale of Hydro One.

READ MORE: Ontario Budget 2017: How will it affect your wallet?

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But after this year, the financial accountability officer is projecting more moderate growth and higher expenses, leading to deficits.

Finance Minister Charles Sousa says his projections are prudent and take into account the growing economy.

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