Ontario is projecting a larger-than-expected $13.8-billion deficit for the coming fiscal year while again pushing back its plan to balance the books, as the province’s sluggish economy feels the effects of U.S. tariffs.

Finance Minister Peter Bethlenfalvy delivered a budget on Thursday that he says is prudent but still includes spending increases for key priorities, including health care, and new tax breaks for small businesses.

The $13.8-billion that the province expects to be in the red in 2026-27 is $6-billion more than Ontario had projected just last fall. Ontario also expects to remain $6.1-billion in the red in 2027-28, when it had previously said it expected a surplus that year – the latest in a series of delays in its plans to balance the books. The province now says it won’t run a surplus until 2028-29.

Ontario is the latest province to issue a red-ink-soaked budget for the coming year, with British Columbia, Alberta and Quebec all warning that they planned to spend billions more than they collect and cut costs as they grapple with economic uncertainty driven by U.S. President Donald Trump’s tariffs on autos, aluminum and steel and concerns about trade talks between Ottawa and Washington.