TORONTO – Ontario Premier Doug Ford is signalling that his government’s budget will favour spending over balanced books, as a way to keep the economy afloat in light of U.S. President Donald Trump’s tariffs.
Finance Minister Peter Bethlenfalvy is set to table the 2025-26 budget later today.
Ford has said the province can always balance the budget in a year or two, but for now he wants to spend on infrastructure and programs to keep people employed or get them retrained.
He says he doesn’t believe in slashing and burning, especially during tough economic times.
The province’s last major fiscal update, the fall economic statement, had eyed a balanced budget for 2026-27, but that came before the election of Trump and the implementation of tariffs.
A recent report from Ontario’s Financial Accountability Office said American tariffs will reduce demand for Ontario’s exports, slowing real GDP growth from the projected 1.7 per cent to 0.6 per cent, which “implies that a modest recession would occur in 2025.”
This report by The Canadian Press was first published May 15, 2025.
