Ontario fiscal defict likely to contract by FY2016-17

Weaker Canadian dollar, lower oil prices, and improvement in U.S. economic likely supported the economic outlook of Canada.

Ontario Economic Outlook and Fiscal Review for 2015 were released yesterday. While releasing the report, Charles Sousa, the Finance Mininster of Ontario announced that the economy is on track and its budget will be balanced by FY2017-18, despite the poor economic performance. 

"The deficit is anticipated to clock in at $7.5 billion (1.0% of GDP) in FY2015-16, or about $1 billion less than was projected in 2015 Budget. The deficit is expected to narrow to just $4.5 billion by FY2016-17 with the budget balanced in FY2017-18", says TD Economics in a research note.