Today, Minister of Finance Peter Bethlenfalvy released the 2026 Ontario Economic and Fiscal Review: A Plan to Protect Ontario, which furthers the government’s plan to protect Ontario workers, businesses and communities while building the most competitive, resilient and self-reliant economy in the G7. The government is investing to fortify key tariff-impacted industries while improving Ontario’s competitiveness in order to attract good-paying jobs in strategic sectors including advanced manufacturing, critical minerals mining and refining, artificial intelligence, defence and more.
Ontario’s workers, families and businesses continue to face significant challenges from ongoing U.S. trade actions, geopolitical instability and broader global economic uncertainty. Despite these challenges, Ontario’s fiscal plan maintains the flexibility to respond to changing conditions, while continuing to invest in the priorities that matter most to families and communities. Given these external factors, Ontario’s fiscal outlook, presented in the 2026 Ontario Economic and Fiscal Review, projects a path to a balanced budget in 2029-30.
“Under the leadership of Premier Ford and Minister Bethlenfalvy, Ontario’s 2026 Fall Economic Statement reinforces our commitment to safeguarding our local economy while setting a clear path toward a balanced budget,” said Lisa Thompson, MPP for Huron-Bruce. “Through key initiatives like expanding tax relief for small businesses, investing in critical infrastructure, and reducing administrative red tape, we are protecting local workers, strengthening primary industries, and ensuring Huron-Bruce and rural Ontario communities remain a competitive place to live, work, and grow.”
“Ontario continues to face significant economic uncertainty driven by U.S. tariffs on Canada, but our government has a plan to protect workers, businesses and communities while building a stronger economy for the future,” said Minister Bethlenfalvy. “Through responsible fiscal stewardship we are fortifying key provincial industries as we attract the jobs of the future, protecting key public services and ensuring our province remains competitive in an increasingly uncertain global economy.”
Through responsible fiscal management and targeted investments, Ontario is strengthening domestic economic opportunities, reducing internal trade barriers, supporting workers and job creators, investing in critical infrastructure through our $210 billion capital plan, and maintaining the flexibility needed to respond to evolving economic challenges. The government’s fiscal plan maintains a sustainable path forward while supporting the long-term growth and competitiveness of Ontario’s economy.
Highlights of the 2026 Fall Economic Statement include:
- Strengthening Ontario’s competitiveness through the Ontario Competitiveness Tax Cut, part of Ontario’s multi-year Tax Action Plan. This measure would provide $8 billion in provincial tax relief, which is the provincial component of the federally announced Productivity Mega Deduction, which would lower the cost of business investment by permanently allowing businesses to immediately write off 100 per cent of the value of a wide range of assets. Following the passage of federal legislation, the measure is estimated to attract at least $11 billion in additional capital investment to the province, creating 30,000 new jobs and adding $6 billion to gross domestic product (GDP). Combined with the accelerated write off measures included in the 2026 Budget, this would bring Ontario’s total tax relief in support of business investment to more than $12 billion over five years.
- Continuing to fortify Ontario’s industrial base and attract jobs and investment through the new $8.7 billion Canada-Ontario action plan to strengthen the province’s steel, automotive and critical minerals sectors. The plan will help protect workers and businesses affected by U.S. tariffs, support the modernization of key industries, unlock critical mineral development and prepare Ontario to compete in the industries of the future, including advanced manufacturing, defence, energy, electric vehicles and strategic infrastructure. By strengthening domestic supply chains, expanding market opportunities and supporting major investments, Ontario is building a more competitive, resilient and self-reliant economy.
- Cutting red tape to build the most competitive economy in the G7 by reducing regulatory burden and accelerating approvals for businesses. This includes a commitment to review every one of the province’s 375 business-facing permits over three years, with the goal of eliminating, streamlining or transforming 35-50 per cent by the end of 2028. In the first year, the government has already reviewed 51 per cent of the 375 business-facing permits, of which it has eliminated, streamlined or transformed 65 per cent of permits reviewed. Ontario is also eliminating nearly 220,000 days’ worth of permit processing times, accelerating the delivery of critical infrastructure projects and supporting labour mobility.
- Taking swift action by announcing nearly $30 billion in tariff relief and supports for workers and businesses since April, 2025, including measures to build long-term economic resiliency and prosperity. This includes a six-month interest and penalty-free deferral period from April 1 to October 1, 2025, for select provincially administered taxes, making up to $9 billion in liquidity relief available to approximately 80,000 businesses to help ease financial pressures. The government has also expanded eligibility for the Ontario Together Trade Fund (OTTF) and the Protect Ontario Financing Program (POFP) to provide businesses with the critical support to keep their doors open, keep workers on the job and reshore their supply chains.
- Enhancing support for research and development by restoring capital expenditures as eligible expenditures under the Ontario Research and Development Tax Credit and the Ontario Innovation Tax Credit, in parallel with recent federal enhancements. This is estimated to provide more than $50 million over the next three years in additional tax support, helping to lower the cost of R&D for about 700 businesses.
- Respecting taxpayer dollars through responsible fiscal management and ongoing efforts to improve government efficiency, strengthen oversight and reduce administrative burden. The government measures include reviewing priority programs and services to identify efficiencies, reduce error, waste, abuse and fraud, and to improve investment outcomes and ensure resources are focused on delivering high-quality public services for Ontario families and businesses.
- Supporting Ontario’s film and television sector by proposing to update eligibility for the Ontario Computer Animation and Special Effects (OCASE) Tax Credit. To help streamline support and simplify access to the 18 per cent refundable corporate income tax credit, the government is proposing to transition eligibility for this credit to film and television producers only. This proposed approach would more closely align with eligibility in other Canadian jurisdictions and continue to support special effects and animation activity in Ontario.
- Advancing the largest capital plan in Ontario’s history, with planned investments of more than $210 billion in planned investments over 10 years beginning in 2026-27. By keeping shovels in the ground, investments in highways, transit and community infrastructure are supporting jobs, driving economic growth and building stronger communities across the province. In Huron-Bruce, communities such as the Town of Saugeen Shores and Municipality of Brockton are excellent examples of benefitting from our commitment to build.
- Investing about $30 billion over the next 10 years to build new and redeveloped schools and child care spaces, to help ensure growing communities are provided with healthy learning environments and modern spaces. In Huron-Bruce for example, our government has recently announced it’s support towards developing a new Port Elgin elementary school, continuing to focus on and meet the local priority needs in rural communities.
- Investing approximately $64 billion in health infrastructure over the next decade, including nearly $50 billion in capital grants to support more than 50 hospital projects and approximately 3,000 new hospital beds across Ontario. For example, the provincial government and South Bruce Grey Health Centre recently announced their joint partnership towards the redevelopment of the Kincardine hospital, that will transform emergency care, diagnostics, and patient experience for residents of Kincardine and surrounding communities.
- Under Premier Ford’s leadership, our government has never raised a tax, and we remain committed to protecting rural Ontario from unnecessary financial burdens. This year alone, we’re saving people and families across the province nearly $12 billion. Our government has:
- Cut the income tax for 1.1 million low-income workers
- We have removed the full 13% HST for eligible buyers of new homes to provide up to $130,000 in relief
- We further cut the Small Business Tax from 3.2% to 2.2% saving over 375,000 businesses $5,000/year
- We introduced the Low-income Individuals and Families Tax Credit (LIFT) to reduce income tax for 1.7 million low-income Ontarians.
- At the same time, our government is making targeted investments that matter to rural Ontario, including:
> Increasing the Ontario Municipal Partnership Fund (OMPF) to $600 million
> Doubling the Ontario Transit Investment Funding (OTIF) to $30 million.
> Investing $400 million through the Ontario Community Infrastructure Fund (OCIF).
- Through the Rural Ontario Development (ROD) Program, our government is continuing to help rural communities strengthen local economies, attract new investments, and help create and protect good-paying jobs close to home.
Despite ongoing economic uncertainty, Ontario’s economy is expected to continue growing, with real GDP projected to increase by 0.5 per cent in 2026 and 1.5 per cent in 2027.
Ontario’s fiscal plan has built in additional prudence to maintain flexibility and respond to challenging economic conditions. The deficit is projected to be $16.9 billion in 2026–27, $12.7 in 2027-28 and $6.7 billion in 2028–29 before returning to balance in 2029–30.
Supporting Ontario’s forest sector through more than $90 million in investments to strengthen competitiveness and innovation, alongside over $86 million in support for forest biomass projects that secure and increase long-term wood utilization across the province.
Ontario continues to make progress in managing its debt burden, with the net debt-to-GDP ratio forecast to remain below the government’s 40 per cent target throughout the outlook period.
Keeping costs down for families and individuals by providing more than $12.5 billion in supports in 2026–27, including investments in housing, education, transit and transportation, energy affordability, child care and family benefits, and supports for vulnerable populations.
The government will launch consultations this November to help inform the 2027 Budget and the next phase of its plan to protect Ontario, grow the economy, build critical infrastructure and deliver better services.
ADDITIONAL RESOURCES
