Even with ongoing trade uncertainties, the Ontario government has rolled out a budget aimed at boosting the province’s development.
Finance Minister Peter Bethlenfalvy unveiled the draft 2026 budget at Queens Park on Thursday afternoon, continuing to embrace the Ford government’s “Protect Ontario” theme.
In his address, Bethlenfalvy highlighted that the province’s credit rating has improved by two levels, signaling sound financial management. He did point out that some difficult decisions may lie ahead.
“While our province has been meeting these challenges head-on, we need to recognize that Ontario does not operate in isolation,” said Bethlenfalvy. “On the contrary, we’re part of a vast network of global trade that until now, has created certainty and growth for generations of workers, families, and businesses in this province and around the world.. the world has changed, and we must change with it.”
To address difficulties faced by small businesses and manufacturers impacted by tariffs, the draft budget proposes lowering the small business corporate income tax rate from 3.2 per cent to 2.2 per cent starting July 1.
As announced on Wednesday, every home buyer in Ontario will qualify for a rebate as the 13 per cent HST is removed for homes priced up to $1 million.
Other key points from the budget included:
Creating the Protect Ontario Account Investment Fund, which will have up to $4 billion allocated to attract investments from pension funds and other private capital.
Extending Ontario’s four-year commitment to the Primary Care Action Plan to $3.4 billion from 2025 to 2029 as efforts continue to connect all residents with a family doctor.
Boosting funding for the Ontario Autism Fund to $1 billion annually.
$37 billion set aside for capital projects in 2026-2027 aimed at constructing roads, highways, hospitals, and various infrastructure.
The projected deficit for 2025-2026 stands at $12.3 billion without service cuts or tax hikes.
The Official Opposition in Ontario reacted swiftly to the budget. NDP Leader Marit Stiles gave it an “F”.
“Young people and families are struggling with sky-high rents, fewer opportunities, and soaring costs,” said Stiles. “Budget 2026 was an opportunity to deliver hope and relief for our province during a difficult moment.”
Shadow Finance Minister Jessica Bell expressed disappointment over missed targets in the budget.
“Premier Ford had a clear test for this budget: lower costs, fix health care and education, build homes that folks can afford, and create good jobs. He failed on all counts,” said Bell. “This budget delivers cuts where Ontarians need support the most.”
The education unions of Ontario have also shared their concerns indicating that once again conditions in classrooms are being overlooked by the Ford government.
“Chronic underfunding has led to large classes, rising violence, and an urgent need to address teacher and education worker retention and recruitment,” read a joint statement signed by all presidents of major education unions in Ontario. “Students with special education needs wait years for assessments and supports while our members stretch themselves beyond reasonable limits to meet increasingly complex needs without adequate resources required. These are not signs of ‘historic’ investment but rather predictable outcomes of long-term neglect.”
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