Province Unveils $14.6 Billion Deficit Budget to Support Workers, Businesses, and Communities Amid U.S. Tariff Pressures

THUNDER BAY, ON – The Ontario government has tabled its 2025 Budget: A Plan to Protect Ontario, outlining a strategy to support workers, businesses, and communities amid escalating U.S. tariffs and global economic uncertainty.

Delivered Thursday by Finance Minister Peter Bethlenfalvy, the budget prioritizes building a more resilient, self-reliant economy while investing in key sectors like health care, education, critical minerals, and infrastructure.

Despite projecting a $14.6 billion deficit for 2025-26, the government says its plan remains fiscally responsible and prudent, with a path to balance by 2027-28.

“Our province has faced challenges before, and we’ve always come out stronger,” said Minister Bethlenfalvy. “This budget is about protecting Ontario—our workers, our businesses, and our communities.”

Key Budget Measures with Northern Ontario Focus

Supporting Northern Ontario’s Critical Mineral and Resource Economy

• $500 million Critical Minerals Processing Fund to support new processing facilities in Ontario—creating opportunities in regions like the Ring of Fire and Thunder Bay District.

• Tripling the Indigenous Opportunities Financing Program to $3 billion, enabling Indigenous communities to invest in energy, mining, and resource projects.

• $70 million over four years for Indigenous capacity building in mineral development, plus $10 million in scholarships for First Nations students pursuing careers in resource industries.

Infrastructure and Skills Training Investments

• Ontario continues its record-breaking $200 billion 10-year capital plan, including:

  • $30 billion for highway expansion and rehabilitation.

  • $61 billion for public transit projects.

  • $56 billion for new hospitals and health infrastructure.

  • $30 billion for schools and childcare spaces.

• An additional $1 billion over three years for the Skills Development Fund, supporting training for skilled trades in priority sectors across Ontario, including Northern Ontario communities.

Support for Businesses Facing Tariff Pressures

• $5 billion Protecting Ontario Account, an emergency fund providing liquidity relief to businesses hit hard by tariffs and trade disruptions.

• Enhanced Ontario Made Manufacturing Investment Tax Credit, temporarily increasing the rate to 15% for Canadian-controlled private corporations, and expanding eligibility to public corporations—offering $1.3 billion in additional support over three years.

Cost Savings for Households and Commuters

• Making gas and fuel tax cuts permanent, saving households about $115 annually.

• Removing tolls from Highway 407 East, saving daily commuters up to $7,200 per year.

Other Notable Measures

• $280 million for new private-sector health clinics for diagnostic tests and surgeries.

• Investments to modernize red-light and speed camera programs.

• $57 million for two new police helicopters to assist with border and smuggling enforcement.

Fiscal Outlook and Economic Projections

While Ontario’s economy grew by 1.5% in 2024, growth is forecast to slow to 0.8% in 2025 as tariffs weigh on key industries. The province’s net debt is projected to reach $460 billion, with a net-debt-to-GDP ratio of 37.9% in 2025-26, still below the province’s 40% target.

Opposition leaders criticized the budget as failing to offer meaningful relief for families and public services, while focusing on tax cuts and business supports.

However, the government insists the plan is designed to protect jobs, secure Ontario’s long-term economic strength, and invest in key sectors that drive growth in communities like Thunder Bay, Kenora, and across Northern Ontario.