Ontario expected to face lower deficit of $14.4 billion: finance minister

TORONTO – Ontario faces a $14.4-billion deficit this year, about $400 million lower than projected in last spring’s budget.

Finance Minister Dwight Duncan’s fall economic update predicts higher-than-expected revenues — due to a higher estimated tax base — will help shrink the deficit.

But it won’t accelerate his plan to eliminate the red ink in 2017-18, as deficit projections for the next few years remain unchanged.

Duncan says he’s working with the Progressive Conservatives to gain their support for draft legislation that would freeze pay for public sector workers.

Gross domestic product is projected to grow at 2.0 per cent this year, up from 1.7 per cent forecast in the budget.

The government has also lowered its outlook for economic growth in 2013 and 2014, at 1.9 per cent and 2.3 per cent respectively.