In his third term, Ontario Premier Doug Ford has become more aggressive about his vision for the province and particularly, Toronto.Nathan Denette/The Canadian Press
Ontario Premier Doug Ford and Finance Minister Peter Bethlenfalvy released their 2026 budget Thursday – the eighth for Mr. Ford’s government – which they frame as a cautious but ambitious plan for uncertain economic times. Here are six key takeaways:
Deficit
Ontario is in the red. The province is predicting a higher deficit for the coming fiscal year – much higher. The $13.8-billion deficit in 2026-27 is $6-billion more than Ontario had projected just last fall. Ontario also now expects to remain $6.1-billion in the red in 2027-28, when it had previously said it expected a surplus that year. Ontario’s books aren’t set to be balanced until 2028-29.
Help for businesses
Small businesses will get a break in Mr. Ford’s latest budget. The province is promising a 30-per-cent cut to the tax rate for small businesses, slashing the small-business corporate income tax rate to 2.2 per cent from 3.2 per cent starting in July. The government is also launching a previously pledged $4-billion fund, to be run with a private-sector partner, to invest in industries that the government sees as key to future growth, including artificial intelligence and biotech.
Health care funding
Hospitals are getting a funding boost – but not as much as they wanted. The government is promising $1.1-billion for the province’s hospitals next fiscal year, which is lower than they said they needed. The Ontario Hospital Association, which represents 135 hospital corporations, has said its members are in dire financial straits, and needed nearly $2.8-billion just to stabilize the sector. The province also says it is boosting funding to the Ontario Autism Program by $186-million, for almost $1-billion in spending next year, and is pledging $1.1-billion in additional spending for home care over the next three years.
Housing
New homeowners will be getting a bigger tax break thanks to combined relief from the provincial and federal governments. The province says it is temporarily expanding its HST rebate on new homes to all buyers to a maximum rebate of $130,000 for homes up to $1-million. Homes worth up to $1.5-million would also be eligible for a rebate, but it would be capped at $130,000, with smaller tax breaks for homes worth up to $1.85-million.
Ontario hospitals face dire financial straits, association says ahead of provincial budget
Border money
Ontario says it will continue to strengthen its border with the United States to prevent illegal crossing by land, air and water. The budget pledges to expand the province’s “Operation Deterrence” with an influx of $32.5-million to help municipal and First Nations police services acquire drones, marine vessels and surveillance technologies. It is also creating a “border integrity investigation fund” to address enforcement gaps, with a focus on unmonitored aviation fields and “other vulnerable entry points.”
Ford’s priorities
The budget also touches on previously announced proposals from Mr. Ford, who in his third term has become more aggressive about his vision for the province and particularly, Toronto. The document reiterates Mr. Ford’s pledge to take over Toronto’s ownership of the lands at downtown Billy Bishop airport, in order to get around the city’s objections to expanding the facility to allow jets. The budget mentions the previously announced “feasibility study” for the Premier’s concept of a massive, multibillion-dollar tunnel expressway under a stretch of Highway 401 through Toronto, saying that fieldwork is set to start this spring.
The document also highlights the government’s pledge to allow stores – which previously were mandated to close – to open on Family Day and Victoria Day. And it reiterates the province’s plans to introduce legislation that would exempt the Premier’s office, cabinet ministers and parliamentary assistants from freedom-of-information laws – allowing them to keep e-mails, documents and Mr. Ford’s cellphone records secret.