Ontario Premier Doug Ford has brought down his government’s budget for the next 12 months.
The province plans to spend more than $244 billion in the face of what it calls unpredictable economic shocks.
But it also suggests there will be a nearly $14 billion deficit for 2026-27 — nearly double what was originally projected, and critics say it doesn’t include some key spending to help people in Ontario.
The budget highlights include a 1% tax cut for small business, more than $1 billion in new funding for hospitals, money for health care and education, AI development, robotics and defense manufacturing — plus a plan to boost housing with temporary rebates on the 13% harmonized sales tax for the purchase of new homes priced up to $1.5 million.
Ontario Finance Minister Peter Bethlenfalvy said this year’s budget reflects the resilience Ontario’s economy showed in 2025.
"Prosperity ... is Ontario’s path," he said. "And we were able to choose this path because our fiscal firepower allowed us to do so. Our government’s prudent and responsible management of Ontario’s finances has allowed us to protect and grow our economy — all without having to raise taxes or fees on the people and businesses who worked day in, day out to make this the greatest province, the greatest country in all of the world."
But opposition members of the legislature were quick to point out what is lacking in this year’s budget.
"It does nothing to address the number one concerns of Ontarians, which are the cost of living, groceries, rent," said Marit Stiles, leader of the New Democratic Party in Ontario. "The fact that we don’t have enough affordable homes being built in this province at all and the state of our health care and education system. In fact, there’s a pretty significant cut to our classrooms for our schools, our post secondary institutions and the amount of funding that’s coming in for health care, particularly for our hospitals is far beneath what they’ve asked for. It means that we’re going to keep seeing more and more people being treated in hallways."
Mike Schreiner, leader of the Green Party of Ontario, echoed Stiles' sentiments.
"Nothing about making homes more affordable, nothing about lowering costs for students who are seeing OSAP cuts," he said. "I feel for the frontline health care and education workers who are struggling with overcrowded hospitals and classrooms. This budget’s not going to fix that for them."
The CEO of the Toronto Region Board of Trade, Giles Gherson, said the provincial economy has been slowing down because of U.S. tariffs and trade uncertainty and that’s affected private sector investment, especially in developing new technology.
"What is this budget really doing to support business investment in their own growth at a time when that is pretty challenging?" he said. "And I guess I’d say there is some good things in the budget certainly, some good moves to support business investment. But I think the big question is: Is it enough and is it going to happen fast enough?"
One item on the budget getting positive reviews is the tax cut for small businesses.
"So the percentages look small but, overall, it will typically see up to $5,000 tax relief for small businesses, who really need this," said Rachel Braithwaite, Executive Director of the Ontario Business Improvement Area Association. "You know a lot of the tariff relief systems that have been out there in the programs and the grants available were just not accessible for them. So we’re really happy and excited to see that this one is. For our small businesses, every dollar counts."
The budget, called a Plan to Protect Ontario, with its $244 billion in spending comes at a time of global instability, and that includes economic and trade tensions, supply chain disruptions and looming talks aimed at renegotiating a North American trade agreement.
