(Bloomberg) -- Ontario posted its first budget surplus in 14 years as inflation and resilience in the economy bolstered revenue above projections in fiscal 2021-2022.

The world’s largest sub-sovereign debt issuer reached a C$2.1 billion ($1.6 billion) surplus in the year ended March 31, 2022. That compares with previous expectations for a deficit of C$13.5 billion, the government said in an emailed statement. 

“This surplus puts Ontario in a stronger fiscal position in the short-term,” Ontario’s government said in the statement. 

However, it cautioned that the surplus has only “temporarily” eliminated the provincial deficit.

“Ontario’s situation is not unique,” it said. “Other provinces that have released updates to their 2021-22 deficit figures, including Quebec, Saskatchewan, Alberta and British Columbia, are also seeing revenues in excess of their initial forecasts.”

Furthermore, the 2021-2022 fiscal performance isn’t indicative of the current fiscal outlook, as it doesn’t include any forward-looking factors, including the impact of more recent changes in the economy or future spending decisions, it said.

Ontario had been expected to return to a balanced budget in fiscal 2027-2028.

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