The 2024-25 Mid-Year Report forecasts a deficit of $743.5 million at mid-year, an increase of $470.4 million from budget.
Overall, total expense is forecast to increase by $745.5 million, or 3.7 per cent, from budget.
In addition to increases related to the unfavourable weather conditions on the province's crops, the Protection of Persons and Property expense theme increased $128 million, primarily due to operating pressures in correctional facilities and wildfire response efforts. The Health expense theme also increased $100 million to address service and volume pressures.
Partially offsetting the expense increase, total revenue is forecast to increase by $275.1 million, or 1.4 per cent, from budget.
The largest areas of growth are in the Other Own-Source and Taxation revenue themes. Other Own-Source is forecast to increase by $235.5 million compared to budget due to improvements across this category, including increases in investment and insurance income. Taxation is also forecast to increase by $133 million, primarily due to an increase in corporate income taxes. This increase is a result of larger than anticipated 2023 tax assessments, which were supported by the province's strong economy.
Total gross debt at mid-year is forecast to be $35.2 billion, an increase of $388.5 million from budget, but a $12.3 million decrease from the first quarter. The increase in gross debt is entirely attributable to the self-supported or Crown sector, as reported in the first quarter.
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