Facing mounting economic uncertainty and an escalating trade dispute with the United States, the Ontario government is bracing for a significantly weaker fiscal outlook, one that will see the province’s deficit jump sharply in the years ahead.
Finance Minister Peter Bethlenfalvy tabled the province’s 2026 budget at Queen’s Park on Thursday, outlining a plan that projects a $13.8-billion deficit for 2026–27, a steep increase from earlier forecasts and nearly double what had been anticipated just a year ago.
The fiscal update also pushes Ontario’s path to balance further into the future. The government now expects to remain in deficit through 2027–28, when it forecasts a $6.1-billion shortfall, before returning to a modest $600-million surplus the following year.