Ontario tables massive deficit in 2025 budget amid Trump tariffs
CBC
Doug Ford's new budget is awash in red ink, with a $14.6-billion deficit planned for the next fiscal year largely to deal with the economic pain of a trade war with the United States.
The $232-billion budget delivers on a promise the premier made during his reelection campaign in February to spend big on tariff relief programs. It also presents a starkly different picture of Ontario's financial future than the one shared in the 2024 fall economic statement, with a longer path to balance.
"Now is the time to invest in business and workers as we face this challenge, it is not the time to take our foot off the pedal of building infrastructure," Finance Minister Peter Bethlenfalvy said to reporters at Queen's Park.
In the legislature, much of the finance minister's speech focused on the actions of U.S. President Donald Trump, who in a viral exchange, told Ukrainian President Volodymyr Zelenskyy his country did not "have any cards" without the United States.
"Here in Ontario, we have all the cards we need," Bethlenfalvy told his fellow MPPs, referencing the province's natural resources and workforce.
As recently as last fall, the province predicted a $1.5-billion deficit in this spending plan.
The budget also includes previously promised measures like a $9-billion tax deferral and a $5-billion fund for businesses.
Tariff relief measures include:
The government's path to a balanced budget has been extended by a year in part due to the impact of American tariffs.
After projecting a small surplus in 2026-27 in the fall economic statement, the government now expects to run a nearly $8-billion deficit that year, before balancing the budget in 2027-28.
The province has also lowered its revenue expectations for the next few years, as Ontario is poised to be hit particularly hard by tariffs.
"When I tabled the fall economic statement, Donald Trump hadn't been elected," Bethlenfalvy said. He added a balanced budget is "on my wishlist every Christmas."
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