Oct. 22 (Bloomberg) -- Ontario Finance Minister Dwight Duncan raised his deficit projections for Canada’s largest province as an economic slump cuts revenue.

The province will run a record deficit of C$24.7 billion ($23.6 billion) in the current fiscal year, compared with a June forecast of C$18.5 billion, Duncan said in an update released today in Toronto. The province will have budget gaps of C$21.1 billion in 2010-11 and C$19.4 billion in 2011-12. Ontario’s fiscal year starts April 1.

“The recession has had a significant impact on the global economy -- and on Ontario,” Duncan said to lawmakers in the province’s legislature.

Ontario is spending on infrastructure and job training while cutting business and personal income taxes to revive the provincial economy, Duncan said. Ontario’s economy will grow 2 percent next year and 3 percent in 2011, rebounding from a 3.5 percent decline this year, according to government projections.

Ontario expects revenue to fall to C$90.2 billion for the current fiscal year, 6 percent lower than its initial forecast in March. Program spending will rise to C$104.3 billion in the current year, a 4.7 percent increase from the original plan.

The province plans to increase its borrowing by 22 percent in the year to C$42.6 billion, according to the budget update.

Ontario’s C$65.2 billion of projected cumulative deficits is almost twice the C$36 billion three-year gap that Duncan forecast when he released his budget in March.

For Related News and Information: Ontario government bonds: ONT <Govt> <GO> Canada economy profile: CBQ12 <GO> Top Canada news: TOPC <GO> Canada government news: TNI CANADA GOV <GO> Canadian dollar: CAD <CURNCY> GP <GO>

Last Updated: October 22, 2009 16:52 EDT