A Budget Season for the Books - Four Strong Winds Blew Through the 2023 Fiscal Plans in Canada’s Provinces

Budget season is always closely watched in Canada, but this year’s edition was particularly eventful. Government revenues again got a starting point boost, improving some balance projections for fiscal year 2023–24, but we see plenty of potential downside risk this fiscal year. Policymakers generally scaled back on measures to combat the high cost of living, and also increased spending projections. But markets clearly interpreted Ontario as the winner of budget season 2023 and heading into a period of economic and financial market uncertainty, Canada’s largest province holds several advantages despite its economic risks.