As provincial governments across Canada have announced plans to run deficits amid challenges due to U.S. tariffs and global economic uncertainty, Premier Doug Ford and Finance Minister Peter Bethlenfalvy are set to unveil the 2026 Ontario budget at Queen’s Park on Thursday.
One of the big questions hanging over the Ford government ahead of the budget is how large its deficit will be heading into the upcoming fiscal year.
According to the Ontario fall economic statement tabled in November, the projected deficit for 2026-2027 was $7.8 billion — down from an estimated $13.5 billion in 2025-2026. At the time, officials projected the provincial government would post a $200-million surplus in the 2027-2028 fiscal year.
British Columbia recently saw its credit rating downgraded after NDP Premier David Eby’s government tabled a budget with a $13.3-billion deficit. United Conservative Party Premier Danielle Smith’s government tabled a 2026-2027 budget in the Alberta legislature with a $9.4-billion deficit. In Quebec, CAQ Premier François Legault’s government posted an $8.6-billion deficit.
In advance of the budget, provincial officials have unveiled certain elements of the budget. For example, Bethlenfalvy said there would be an additional $325 million toward primary care. On Wednesday, the Ford government confirmed there would be $1.4 billion to cover the provincial share of the HST for some homebuyers over the period of a year as part of a push to bolster home construction.
The temporary measure would see homes valued up to $1.5 million qualify for the maximum $130,000, decreasing proportionally to homes valued at $1.85 million, which would qualify for $24,000.
The Ford government previously introduced rebates for first-time homebuyers on new homes valued up to $1.5 million, with homes valued at $1 million or less qualifying for the maximum amount of $130,000 when combined with a federal rebate.
The tabling of the Ontario budget also raises questions about the status of several major capital projects proposed by the Ford government, including whether or not there will be funding to advance projects like a massive new convention centre in Toronto, a potential Highway 401 tunnel, and improvements and changes to the Ontario Place grounds, including a new Ontario Science Centre.
The government also still needs to detail the full costs involved with building major transportation projects like Highway 413 and the Bradford Bypass.
What opposition parties are looking for in the Ontario budget
Ahead of the release of the Ontario budget on Thursday, members of the provincial opposition parties released their priorities for the upcoming fiscal year.
Ontario NDP leader Marit Stiles and shadow finance minister Jessica Bell released a “report card” they’ll be using to judge the budget.
They said they want to assess whether it will address the cost of rent and groceries, health care, education, building affordable homes, creating jobs, and spending money “responsibly.”
“Ontarians want their government to make life more affordable, deliver better care faster, and create opportunities so you and your family can actually get ahead,” Bell said in a statement.
John Fraser, the interim leader of the Ontario Liberal Party, said in a statement that the party is focused on “real relief for families,” arguing for accountability and affordability measures.
“After eight long years of Doug Ford’s Conservative government, the cost-of-living crisis is out of control. Groceries, housing, electricity — everything costs more,” he said.
The statement also talked about addressing issues such as recent changes to OSAP, health care, education, housing and jobs.
Meanwhile, Green Party of Ontario leader Mike Schreiner said the Ford government isn’t doing enough to address affordability issues.
“Ontarians have been abandoned by a government that continually puts corporate interests above the well-being of everyday people,” he said in a statement.
Schreiner said the party is seeking action to address priorities, such as building affordable homes, protecting farms and the water supply, improving health care, expanding renewable energy, improving education, and lowering post-secondary student debt.
Coverage of the budget on CityNews
CityNews will have complete coverage of the 2026 Ontario budget at Queen’s Park.
Bethlenfalvy’s address to the legislature after the budget is tabled will be carried live on CityNews 24/7, as will an Ontario budget special hosted by Cynthia Mulligan.
As soon as Bethlenfalvy starts speaking (which is expected to happen just after 4 p.m.), reporters will be released from a budget lock-up. We’ll have all the details online at that time.
With files from The Canadian Press
