Ontario’s project deficit for the year has nearly doubled with the government saying it will be $13.8 billion down in 2026-27.
This is up from the projected $7.8 billion deficit projected for 2026-27 in last year’s budget.
This all comes following the Ford government revealing the spring budget dubbed A Plan to Protect Ontario which also showcased new spending on programming such as post secondary, home care and relief for new home buyers.
Finance Minister Peter Bethlenfalvy says to help the province navigate the economic challenges and come out stronger they are investing in strategic priorities such as energy, critical minerals, key infrastructure and critical technologies which will make the economy stronger.
Highlights of the budget include;
- Delivering on the province’s Tax Action Plan to make Ontario the most competitive jurisdiction in the G7 and lower costs by:
- Providing further relief for home buyers by removing the full 13 per cent of the Harmonized Sales Tax (HST) for all eligible buyers of new homes valued up to $1 million for a maximum rebate of $130,000 in relief to an eligible buyer and the amount would be maintained for new homes valued up to $1.5 million. The federal government has agreed to cost-share with Ontario in support of provincial housing initiatives, subject to passage of federal legislation, which would approximately cover the federal five per cent portion for the HST that is being removed from new homes in Ontario. This partnership would provide almost $2.2 billion in total joint tax relief for housing in Ontario.
- Ensuring Ontario’s small businesses continue to stay competitive and resilient by proposing to cut the small business corporate income tax (CIT) rate from 3.2 per cent to 2.2 per cent effective July 1, 2026. By cutting the rate by more than 30 per cent, over 375,000 Ontario small businesses would benefit from an additional $1.1 billion in CIT relief over the next three years.
- Intending to lower the cost of capital investments by allowing businesses to accelerate the income tax deduction for the cost of depreciable assets, in parallel with changes announced by the federal government. These changes would lower the cost for investment in a broad range of assets and would take effect following the passage of federal legislation.
- Establishing the Protect Ontario Account Investment Fund, in which the province will invest up to $4 billion to attract investment from pension funds and other private capital to advance Ontario’s long-term economic and strategic priorities.
- Increasing funding for the Ontario Autism Program to nearly $1 billion annually, which will enable more children and youth to access core clinical services while further strengthening sector capacity across the province.
- Expanding Ontario’s four-year investment in the Primary Care Action Plan to $3.4 billion from 2025 to 2029, furthering the province’s plan to connect everyone in Ontario to a family doctor or primary care provider. Initiatives through the Primary Care Action Plan will close the gap for the remaining people of Ontario who want to connect to primary care, achieving the goal of connecting every person in Ontario to primary care.
- Investing in the most ambitious provincial capital plan in Canadian history, with planned investments over 10 years totalling more than $210 billion, including $37 billion in 2026–27. This includes building highways, hospitals, transit and community infrastructure to keep workers on the job, strengthen Ontario’s economy and ensure communities thrive for generations to come.
- Providing an additional $300 million over six years through the Community Sport and Recreation Infrastructure Fund, to help meet the needs of growing communities by supporting the repair, upgrade or construction of new sport and recreation facilities across the province. Ontario’s investments through the program now total $500 million.
- Improving student achievement and preparing students for the future by investing $66 million per school year to create the Classroom Supplies Fund for elementary school homeroom teachers to receive a Classroom Supplies Card that provides access to $750 annually to reduce out-of-pocket expenses.
- Saving daily transit users in the Greater Toronto and Hamilton Area (GTHA) up to $1,600 per year, by extending the Ontario One Fare Program for an additional two years to continue keeping costs down for commuters.