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Ontario projects steeper $14.6 billion deficit, promises supports for business impacted by tariffs

Ontario is projected to record a $14.6 billion deficit in 2025-26, up from the $6 billion shortfall anticipated in the last fiscal year

Published May 15, 2025 at 5:55pm

Marco Vigliotti
By
Marco Vigliotti
Ontario projects steeper $14.6 billion deficit, promises supports for business impacted by tariffs

Ontario Minister of Finance Peter Bethlenfalvy gives a thumbs up as he walks on stage at the Ottawa Board of Trade's Mayor's Breakfast Series, in Ottawa, on Thursday, March 28, 2024. THE CANADIAN PRESS/Justin Tang

Finance Minister Peter Bethlenfalvy's latest budget includes billions in supports to shore up the province's economy in the face of costly tariffs from the U.S., plunging Ontario deeper into deficit and deferring a planned return to balance by another year.

Some of the biggest ticket items in Thursday's budget include the new $5 billion Protect Ontario Fund to support businesses harmed by the tariffs, $50 million to help businesses find new trading markets, an additional $1 billion for skills training and $500 million to spur growth in the critical mineral processing sector.

The province also vowed to defer some taxes on businesses, offer up tax credits for manufacturers and shortline rail operators, slash Workplace Safety and Insurance Board premiums, and make gas and fuel tax cuts permanent.

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