Ontario’s fiscal situation is slowly improving, but there’s still no way to avoid a public service wage freeze, Finance Minister Dwight Duncan says.

The treasurer revealed Thursday that the final deficit figure for 2011-12 was $13 billion, which is $3.3 billion lower than his estimate of $16.3 billion in last year’s budget.

“A $13 billion deficit is a large deficit and it is not sustainable,” said Duncan, defending the need for upcoming legislation to impose a two-year wage freeze for public servants.

In all, about 1.06 million Ontarians, including teachers, doctors, nurses, police, firefighters and bureaucrats, would be affected.

The revised figure includes the $190 million the Liberals paid to close a gas-fired power plant near Sherway Gardens to save four seats in Mississauga and Etobicoke during last fall’s election.

Despite being two years ahead of schedule toward getting out of the red, the treasurer said the deficit is not slated to be eliminated until 2017-18 due to worldwide economic “uncertainty.”

As well, the estimated shortfall for this fiscal year remains unchanged at $14.8 billion.

“While economic growth has returned to Ontario, it is more modest than we would like, so strong action is necessary to eliminate the deficit,” he said.

On Tuesday, the Liberals rammed through an imposed freeze for 136,000 public elementary and high school teachers.

Revenues for last year were $109.8 billion — $500 million above forecast thanks to Chrysler Canada repaying its loan from the 2009 auto bailout.

Progressive Conservative Leader Tim Hudak said Ontario remains in rough shape financially thanks to a “dramatically out of touch” government.

“Only the Liberals would applaud a deficit that is greater than all the other deficits in Canada combined, times two,” said Hudak.

NDP MPP Gilles Bisson (Timmins–James Bay) accused the Grits of playing fast and loose with the numbers by predicting a higher than anticipated deficit last year then coming in below.