Ford government outlines $244 billion budget
Record spending from the provincial government.
Finance Minister Peter Bethlenfalvy tabled the 2026 budget at Queen’s Park on Thursday afternoon, which calls for $244 billion in spending over the next year.
“Ontario is navigating economic challenges with a pragmatic and prudent fiscal plan,” says Bethlenfalvy.
“To help the province navigate these times and come out stronger, we are investing in strategic priorities such as energy, critical minerals, key infrastructure and critical technologies that will make our economy stronger, while cutting red tape and creating the conditions for businesses to grow, supporting workers and strengthening Ontario’s economy.”
The budget includes a new investment fund to attract investment from pension funds and other private capital.
The province is giving the fund a $4 billion kick-start.
To spur investment among the business community, the province intends to allow businesses to accelerate the income tax deduction for the cost of depreciable assets, keeping in line with changes announced at the federal level.
Small businesses will get a tax break, starting on July 1st.
The small business corporate income tax rate is being lowered by a full percent to 2.2%.
This is an additional $1.1 billion for home and community care, with a similar amount for hospitals.
Education also sees a slight increase in funding from the previous year.
The province is also prepared to increase funding for autism services to nearly $1 billion, which it says will allow more children and youth to access core clinical services.
The increased spending will result in the deficit reaching $13.8 billion over the next year.
Last year’s budget forecast a surplus by 2028.
This budget pushes that outlook ahead another year, with a modest surplus of about $600 million.
Bethlenfalvy says while other provinces and the federal government have opted for funding cuts, reduced the civil service or increased taxes, Ontario has opted for a plan that increases competitiveness and spurs investment and job creation.
