Ontario's deficit now stands at $7.4 billion, down from the $11.7 billion stated in the spring budget.

The government says the 2018-19 deficit improved due to higher-than-expected tax revenues and lower spending.

The deficit is still projected to be $10.3 billion in 2019-20.

Expenses last year were lower than anticipated in education, children's and social services and justice.

Today's public accounts financial update also says household disposable income increased by 5.4 per cent.

The government says that's due to a number of factors, including the previous Liberal government's minimum wage increase.