Amid global economic uncertainty, Finance Minister Peter Bethlenfalvy is signalling his March 26 budget could have some sobering news for Ontarians.
“Geopolitical forces that may have once felt distant now reach our doorstep. Trade pressures, supply chain disruptions, and shifting markets are sending unpredictable shocks through economies everywhere,” Bethlenfalvy told an Empire Club of Canada luncheon Tuesday at the Fairmont Royal York Hotel.
“The world has changed — and Ontario must be ready for what change may bring, even if that means being prepared for tougher times,” the treasurer warned the 1,000 people in attendance.
“We’re already starting to see the impacts across the country. Other provinces so far this year have published record deficits while hiking taxes and cutting public sector jobs,” he said, referring to British Columbia, Alberta and New Brunswick.
U.S. President Donald Trump’s tariffs on Canadian goods — especially auto parts and steel — as well as ongoing wars in Ukraine and the Middle East are all having an impact on provincial treasuries.
“Here in Ontario, we don’t believe in raising taxes, and we will continue to build on our record of making life more affordable for people and businesses — and support job growth — while ensuring we deliver government programs and services efficiently and sustainably.”
Bethlenfalvy will table a record fiscal blueprint in two weeks that is expected to spend around 40 per cent more than premier Kathleen Wynne’s Liberals did in their last budget before being defeated by Premier Doug Ford’s Progressive Conservatives in 2018.
The finance minister — who Ford often acknowledges is more fiscally conservative than he is, calling him “tight as skin on a grape” — insisted his budget “includes prudence and puts us in a strong position to weather economic shocks.”
Its measures “do not remove the bumps but they keep us secure and on course,” said Bethlenfalvy.
Stressing Ontario businesses must improve “productivity and innovation,” he said Queen’s Park was working to reduce the burden of red tape on job creators.
“Ontario’s long-term prosperity depends on increasing our output per worker and per dollar of capital. That means accelerating technology adoption, attracting private investment and commercializing Ontario-made research,” the treasurer said.
“We are supporting growth in AI, advanced manufacturing, energy, life sciences, defence and security technologies and critical minerals, anchored by world-class research institutions and supply chains stretching from the Ring of Fire to our innovation corridors,” he added.
“Our goal is simple: turn ideas into investment, and investment into jobs and exports. We know that businesses invest boldly when rules are clear and timelines are reliable,” said Bethlenfalvy.
“As a government, we are doing our part by cutting red tape, speeding up approvals for major projects and reducing interprovincial barriers so firms can better access markets across Canada,” he said, echoing the calls from Prime Minister Mark Carney’s Liberal government, with which Ford is working closely.
“But we remain clear-eyed. Growth is uneven. The outlook is uncertain. Recent job trends show many still feel pressure. That is exactly why a pragmatic, steady plan matters. From a fiscal perspective, stability matters.”
