UPDATE 1-Ontario eyes potential sale of some gov't assets, GM stake

(Adds details and background on GM stake, provincial budget, paragraphs 3-8)

TORONTO, April 11 (Reuters) - The Ontario government said on Friday it is examining options to generate funds, including the possible sale of certain real estate assets and government-owned entities.

Speaking at a business lunch in Toronto, provincial finance minister Charles Sousa also said the government would look to sell its stake in General Motors Co over the next year or so.

The center-left provincial Liberal government is expected to unveil its 2014-15 budget in the coming weeks, which could lead to an election sometime in the next few months.

Last week, Sousa reaffirmed the Ontario government's plan to eliminate the deficit by 2017-18. He estimated that the province's budget deficit was about C$11.3 billion in 2013-14, smaller than the government's previous target of C$11.7 billion.

Ontario is Canada's most populous province and home to many of the country's largest financial institutions and the heartland of the country's auto sector.

The Canadian and Ontario governments became shareholders of GM in 2009 when they contributed more than C$10 billion ($9.13 billion) to a bailout to keep GM afloat.

Last September, the two governments announced they were selling nearly a quarter of their common shares in GM. Ontario sold 10 million shares, leaving it with about 36.7 million common shares and about 5.4 million preferred shares through Canada GEN Investment Corp., the holding vehicle for the GM stock owned by the two governments. ($1 = 1.0954 Canadian Dollars)

(Reporting by Cameron French; Writing by Solarina Ho)