2026 Ontario Budget

What You Need to Know

Today, Ontario’s Finance Minister Peter Bethlenfalvy tabled the province’s 2026 Budget: A Plan to Protect Ontario.

• In the face of tougher economic times, the government is taking a balanced approach with targeted new spending.
• Competitiveness and jobs are key themes in this year’s budget.
• Budget 2026 maintains a path to a balanced budget by 2028–29.
• Health care is the largest spending item, with a focus on primary care, home care and a 4% increase in hospital funding.

Fiscal Outlook

• Real gross domestic product (GDP) is estimated to have increased by 1.2 percent, up from 0.8 percent at the time of the 2025 Budget. Ontario’s GDP rebounded strongly in the third quarter of 2025 after a decline in the second quarter of 2025. 
• Deficit projection of $13.8 billion in 2026–27 and $6.1 billion in 2027–28, followed by a surplus of $0.6 billion in 2028–29.
• Program expense outlook is projected to be $222.4 billion, which is $6.1 billion higher than the 2025 Budget.
• Revenues in 2025–26 are projected to be $226.6 billion, $6.7 billion higher than projected in the 2025 Budget.
• Interest and Other Debt Servicing Charges are forecast to be $16.0 billion in 2025–26, which is down from the 2025 Budget.

Analysis

The 2026 Ontario Budget is grounded in a prudent fiscal approach focused on maintaining stability amid continued global economic uncertainty. Released mid-mandate, the Ontario government faces less pressure to deliver immediate political wins, allowing for a measured and flexible response to potentially tougher economic conditions ahead.

Against a backdrop of persistent economic uncertainty, heightened geopolitical risk, and ongoing trade disruptions with the United States, the path to a balanced budget has lengthened. This budget uses targeted measures, such as HST rebates for new homebuyers and increased funding for primary care, to address voter priorities without broad spending commitments that could jeopardize fiscal targets.

Health care remains the province’s largest area of spending, though most new funding is focused on home care and primary care, with limited investment in broader systemic reforms.

Overall, the budget balances fiscal prudence with strategic incentives, maintaining flexibility while addressing key public and sectoral priorities.

The following outlines the action Premier Ford's government is taking to manage volatility and support long‑term economic stability.

Click here to read the full analysis to see what Ontario’s 2026 Budget may mean for your sector, upcoming policy decisions, and areas of opportunity.