finance

The Ontario government is projecting budget deficits larger than originally planned.

Finance Minister Peter Bethlenfalvy reveals in a fall economic statement on the state of the province’s finances that the deficit for this budget year will reach $16.9 billion, over $3 billion more than suggested in this spring’s budget.

The government is not projecting a balanced budget until 2029-30.

Bethlenfalvy blames the U.S. trade tariffs and the need to protect workers, industries and communities from the impacts.

“No doubt the world has changed,” says Bethlenfalvy.

“But…we have a plan. A plan that we started on day one. A plan that is working.”

Bethlenfalvy reiterated a commitment made earlier this week, allowing companies to immediately write off certain capital investments for tax purposes, through an $8 billion Ontario Competitiveness Tax Cut program.

The government’s focus is also on securing Ontario’s industrial base that attracts new jobs and investment through the new $8.7 billion Canada-Ontario action plan signed earlier this month.

Bethlenfalvy says they also plan to continue to reduce regulatory burdens to accelerate investment, including a goal to eliminate, streamline or transform most permit policies within the next two years.

The government also intends to review public services and programs for efficiencies and improve oversight.

Bethlenfalvy says it is not necessarily about cutting jobs.

“Every job in the Ontario Public Service is important,” says Bethlenfalvy.

“Similarly in our agencies and the broader public sector, but we have the ability to move people around, find efficiencies, get more productive use out of the existing footprint that we have.”

The opposition was quick to dismiss the statement for failing to address affordability and jobs protection.

“I think it’s pretty clear Ontarians do not want the scandals and the waste, the five-star hotels,” says NDP critic Jessica Bell.

“They don’t want that anymore. What they want is a full economic statement that is going to invest wisely and responsibly in the things that matter: jobs, affordability, education and healthcare.”

“People are worried. They’re worried about their jobs. They’re worried about their kids. They’re worried about whether or not they’ll ever be able to afford a home. They’re worried about crumbling public services,” adds Liberal critic Stephanie Bowman.

“And what do we have here? No credible plan. No credible plan to help those families, those workers.”

The statement comes as the government prepares for a series of public consultations on next spring’s budget.

Details on location and dates are expected to be revealed later in November.

The provincial NDP is ready to give a grade to the Ford government’s budget.

MPPs return to Queen’s Park on Monday with Finance Minister Peter Bethlenfalvy prepared to bring down a new budget on March 26th.

The NDP want it to address several key areas, including affordability, healthcare, education and jobs.

The party’s Finance Critic Jessica Bell says it is why they have decided to launch a budget report card to test the government’s priorities.

“We’re going to be grading Doug Ford’s budget, and we have released a pre-budget report card with five tests we are going to use to grade his budget to determine if this budget helps or hurts Ontarians,” says Bell.

“Our report card looks at whether the Ford government’s latest budget makes life more affordable, whether they’re investing in health care and education, and whether they actually stop wasting people’s hard-earned tax dollars,” says NDP leader Marit Stiles.

The NDP wants to see stronger rent control measures, measures that lead to more affordable and non-profit housing, and initiatives that address unemployment, especially among youth.

“We understand that we have a Trump tariff war and global economic uncertainty, but we do know that there are more practical steps the Conservative government can take to protect jobs and stabilize the economy,” says Bell.