Ontario's finance minister says the provincial government is not ruling out tax hikes in an effort to eliminate the deficit by 2017-18 but will be focused on finding examples of tax avoidance before increasing rates.

"We have a lot of arrows in our quiver," Finance Minister Charles Sousa said Thursday in the fall economic update. "We're going to look at the underground economy."

The province has revised its deficit to $7.5 billion, a figure that is down from the earlier projection of $8.5 billion. The deficit was previously at $10.3 billion for 2014-15 and was revised in September. The final deficit figure will not be known until the end of the fiscal year in March 2016.

The Liberal government maintains it can balance the budget by 2018.

"We know the challenge that is before us," Sousa said. "We're on track to achieve the results we said we would."

This government continues to refuse to admit that its promise to balance the budget by 2017-18 is a sham. - Vic Fedeli , PC finance critic

The government said non-tax revenue, including the net revenue from the recent Hydro One initial public offering, is projected to be about $1.1 billion higher than in the budget.

Sousa said funds received from the sale of Hydro One "exceeded expectations" because it was a "tremendous IPO." Sousa said the money will be pumped back into the provincial economy.

Finance Minister Charles Sousa on province's financial position and ongoing deficit 7:18 "This is about reinvesting our funds into our economy," Sousa told reporters. "We still own 84 per cent of this company with substantially greater value now."

Province 'not relying on assets'

Vic Fedeli, the finance critic for the Progressive Conservatives, said the Liberals are using $1 billion in reserve funding and $1.1 billion from the Hydro One sale to make it seem like the deficit is lower than it is.

Finance Minister Charles Sousa says the Ontario Retirement Pension Plan is going forward despite the election of Justin Trudeau's Liberal government. (Chris Young/Canadian Press) "It's hard to believe a government that's claiming revenue will be $2.2 billion higher this year than the Financial Accountability Officer said it would be, based on slower than predicted growth," Fedeli said in a statement. "This government continues to refuse to admit that its promise to balance the budget by 2017-18 is a sham."

Sousa said non-tax revenues are not being used to reduce the deficit because all of it is going into the provincial Trillium Fund.

Ontario Finance Minister Charles Sousa discusses his province's finances on the day of his economic update 7:40 "We're not relying on assets to control our deficits," the MPP for Mississauga South said.

Pension plan moving forward

Interest on debt is also now forecast to be $140 million below the estimate in the budget because of low interest rates.

The province's net debt is still projected to nearly hit $300 billion by March 31, 2016, though the current projection is now slightly lower than the estimate in the budget.

Sousa also announced that the government will establish a committee to look at improving the representation of women on boards and in senior executive positions, as well as a committee on the sharing economy, encompassing ride-hailing services such as Uber.

The finance minister said the Ontario Retirement Pension Plan is going forward despite the election of Justin Trudeau's Liberal government, who has vowed to increase contributions to the federal pension plan.

"To get there, it's going to take a while," he admitted.