Financial markets are responding to an induced recession.
Ontario's net debt is set to hit $354 billion this year.
The deficit is now pegged at $26.6 billion for 2019/20—$6.8 billion more than originally planned in last spring's budget.
If the conditions of the 2008-09 recession were repeated, the annual deficit would skyrocket to $120.5 billion.
Ontario spends about nine per cent of all revenue on government debt-service payments.
The federal government expects the deficit in 2018-19 to reach $18.1 billion and grow next year to $19.6 billion.
The higher-than-expected inflation of the late-1980s was one reason the bank switched to inflation targeting.
According to recent estimates, the government won’t achieve a balanced budget until 2045.