Background
On March 15th, 2025, Ontario’s Minister of Finance, Peter Bethlenfalvy, delivered the Ford Government’s 2025 Budget, titled A Plan to Protect Ontario. This is the first budget following the PC Party’s majority re-election earlier this year and comes as the province grapples with the economic fallout from the tariffs imposed by U.S. President Donald Trump.
The $232 billion budget represents a significant shift in fiscal direction. Ontario now forecasts a $14.6 billion deficit in 2025–26, up from a $1.5 billion shortfall projected in last year’s fall economic statement. The path to balance has been pushed back to 2027–28. Bethlenfalvy framed the document as a wartime-style response to global instability, stating: “This is not the time to retreat or hit pause. It’s the time to move forward and protect Ontario.”
The budget is built around shielding businesses from trade disruption, sustaining growth through infrastructure spending, and positioning Ontario as a resilient, self-reliant economy. It continues the government’s commitment to affordability and economic competitiveness while introducing targeted measures to assist workers, families, and key industries.
What’s in the Budget?
Tariff Relief and Economic Resilience
The government is launching over $11 billion in support for businesses and workers affected by new U.S. tariffs:
- $9 billion in tax deferrals for approximately 80,000 businesses between April and October 2025
- A new $5 billion Protecting Ontario Account, including $1 billion in immediate liquidity and $4 billion in sectoral stabilization funding
- $40 million for trade-impacted communities to support local adaptation projects
- $20 million for retraining centres in regions experiencing mass layoffs
Building Infrastructure and Enabling Growth
Ontario is advancing a $200 billion, 10-year capital plan focused on long-term growth:
- Nearly $30 billion for highway expansions and upgrades, including Highway 413, the Bradford Bypass, and the QEW Skyway
- $56 billion for health infrastructure, with more than 50 hospital projects and 3,000 new beds
- $2.3 billion for housing-enabling water and wastewater infrastructure, including $400 million in new funding and $1 billion in municipal loans
- A $975 million investment in Toronto waterfront revitalization, in partnership with the federal government and the City of Toronto.
Health Care and Better Services
The budget continues Ontario’s health care investments with a focus on access and modernization:
- $2.1 billion Primary Care Action Plan to connect every Ontarian to a family doctor or care team by 2029
- Up to $1.1 billion in base hospital and surgical funding in 2025–26
- $280 million for new Integrated Community Health Service Centres to increase access to MRI, CT scans, and surgeries
- A new Ontario Fertility Treatment Tax Credit, covering 25% of eligible expenses up to $5,000
Housing and Development
Despite provincial efforts, Ontario projects only 72,000 housing starts in 2025, well short of its annual target. New initiatives include:
- $50 million to support modular housing construction through Invest Ontario
- Expanded use of digital twin technologies to streamline infrastructure approvals and planning
Affordability and Consumer Relief
To support households amid rising costs, the government is delivering several measures:
- Making the 9¢/L gas and fuel tax cut permanent as of July 1, 2025
- Removing all remaining provincial tolls on Highway 407 East
- Delivering $12.9 billion in total family and individual supports, including child care affordability, housing assistance, and enhanced ODSP benefits
Modernizing Markets and Communities
Ontario is introducing new consumer-facing reforms alongside investments in public safety and community infrastructure:
- Alcohol and cannabis policy changes, including lower LCBO mark-ups for ready-to-drink beverages and a new “Ontario Made” cannabis label
- $57 million for two new H-135 police helicopters to enhance enforcement in Niagara and Windsor
- $400 million through the Ontario Community Infrastructure Fund to support 423 rural and small municipalities
What’s the Government Saying?
“This budget is our plan to protect Ontario from the global economic uncertainty caused by U.S. tariffs. We’re taking strong, decisive action to support Ontario workers and businesses and keep building the province.” — Peter Bethlenfalvy, Minister of Finance
“What I can say is you have two options in a budget: you can start cutting and slashing, which I’ve never believed; in tougher times, you go out there, you put money into infrastructure, keeping building … we can always balance in a year or two.” — Premier Doug Ford
What’s the Opposition Saying?
“For families wondering how they’ll make ends meet this summer, for overworked health care or education workers, for auto workers who are worried about their livelihoods, this budget delivers little hope and no reassurance.” — Marit Stiles, Leader of the Ontario NDP
“Time and time again, Doug Ford has failed Ontarians … I’m frustrated watching yet again this Premier care more about alcohol, which is mentioned more than 100 times in the budget, than health care.” — Bonnie Crombie, Leader of the Ontario Liberal Party