The ratings on the Province of Ontario reflect the following factors: Ontario produced its second consecutive solid operating surplus in fiscal 2007 (year ended March 31) of 5.6% of operating revenues, which followed an equally solid 5.4% operating surplus in fiscal 2006. The 2007 surplus exceeded the previous year's budget forecast (3.9%) thanks to stronger-than-expected revenue growth. Income tax receipts, both corporate and personal, and federal government transfers were stronger than expected for fiscal 2007, and easily outpaced the modest in-year spending growth. For fiscal 2008, the province expects a similar operating surplus of 4.2%, as revenue growth has remained healthy throughout 2007 and into early 2008. Looking to the current fiscal year (2009), economic activity, and therefore revenue growth,
