Finance Minister Dwight Duncan announced on Tuesday that recession-hit Ontario will post a deficit in the range of $18 billion over two years. This news comes three weeks ahead of listing of spring budget.

"We'll report our best estimates in the budget, but I can tell you now that the combined Ontario deficit over this year and next, over the next two years, be around that $18-billion figure," Duncan said in a lunch-hour speech to an audience comprising business people.

"A deficit is not something that we take lightly. It is however, a necessity in these challenging times," he said.

Much of this crisis can be attributed to plunging revenues in combination with the inception of the global crisis and which are much lower than the province's expenditure on health care, education and other programs.

Progressive Conservative finance critic Tim Hudak is of opinion that Ontario wouldn't have to face such a crisis situation had McGuinty put something away for a rainy day.

With the upcoming spring budget, the economists are of opinion that reducing tax revenues and increasing the expenditure on health care and infrastructure projects designed to the troubled economy going will put a lot of pressure on Ontario's finances.

However, McGuinty is of opinion that it is imperative for the government to use the budget to fuel the economy, create jobs and provide aid to people trapped in the recession.