The federal government has seemingly ditched the debt-averse approach that largely prevailed in Ottawa since the mid-1980s.
The province faces a projected $779 million budget deficit for 2020.
Ontario will spend an estimated $13 billion on government debt interest costs in 2020/21.
A one percentage point increase in the effective interest rate would increase Ottawa's annual debt interest costs by $13.8 billion.
The update projects a $21.3 billion provincial budget deficit in 2020/21.
Debt interest will cost Ottawa an estimated $19.5 billion this year.
In the 1990s, federal debt-interest costs routinely eclipsed 30 per cent of revenues.