Despite continued uncertainty surrounding trade, the Ontario government has presented a budget designed to feed the province's growth.
Finance Minister Peter Bethlenfalvy presented the province's draft 2026 budget at Queens Park on Thursday afternoon, which continued to follow the Ford government's theme of "Protect Ontario".
During his remarks, Bethlenfalvy called attention to the province's credit rating being improved by two levels, an indication of financial prudence. He did acknowledge that tougher choices may need to be made.
"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."
In response to the challenges facing small businesses and manufacturers affected by tariffs, the draft budget includes a cut in the small business corporate income tax rate from 3.2 per cent to 2.2 per cent, effective July 1.
As announced on Wednesday, all home buyers in Ontario will be eligible for a rebate as the 13 per cent HST is dropped for buyers of homes valued up to $1-million.
Other budget highlights included the following.
Establishing the Protect Ontario Account Investment Fund, in which up to $4-billion will be placed to attract investment from pension funds and other private capital.
Expanding Ontario’s four-year investment in the Primary Care Action Plan to $3.4-billion from 2025 to 2029, as the province continues efforts to connect every resident with a family doctor.
Increasing funding in the Ontario Autism Fund to $1-billion a year.
$37-billion on capital projects for 2026-2027, for the building of roads, highways, hospitals, and other infrastructure.
The province's deficit for 2025-2026 will be $12.3-billion, without cutting services or raising taxes.
Ontario's Official Opposition has responded to the budget. NDP Leader Marit Stiles has given the budget 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 said the budget missed the mark.
"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."
Ontario's education unions have also weighed in, suggesting that the Ford government is once again ignoring conditions in the classroom.
"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 the presidents of all of Ontario's major education unions. "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 the resources required. These are not signs of ‘historic’ investment, but the predictable outcomes of long-term neglect."
