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A Plan to Protect Ontario

March 27, 2026
Three people wearing white hard hats and high‑visibility safety vests stand on a concrete construction site reviewing a large set of blueprints spread out in front of them. One person points to a section of the plans while the others look on. The background shows a lightly textured construction surface with a faint overlay of the Ontario flag. On‑image text reads “A Plan to Protect Ontario,” and the Protect Ontario logo appears in the bottom right corner.

2026 Ontario Budget delivering on plan to protect Ontario workers and families by building a more competitive, resilient and self-reliant economy

Finance

Table of Contents

  1. Content
  2. Quick Facts
  3. Additional Resources

Content

TORONTO — Today, Minister of Finance Peter Bethlenfalvy released the 2026 Ontario Budget: A Plan to Protect Ontario. In the midst of tariffs and economic uncertainty, the government continues to deliver on its plan to protect Ontario by building the most competitive, resilient and self-reliant economy in the G7, including through significant tax relief contained in the next phase of Ontario’s Tax Action Plan. The 2026 Budget furthers the government’s plan to attract jobs and investment, lower costs for workers and businesses, keep life affordable for families and individuals and make targeted investments in key public services that support the province’s long-term prosperity.

“Ontario is navigating economic challenges with a pragmatic and prudent fiscal plan,” said Minister Bethlenfalvy. “To help the province navigate these times and come out stronger, we are investing in strategic priorities such as energy, critical minerals, key infrastructure and critical technologies that will make our economy stronger, while cutting red tape and creating the conditions for businesses to grow, supporting workers and strengthening Ontario’s economy.”

Despite challenging global economic circumstances. Ontario’s 2026 Budget reflects the benefits of the province’s resilience and prudent fiscal management to date. While other provinces and the federal government have made significant funding cuts, reductions in the size of the civil service or increased taxes, Ontario’s 2026 Budget continues to increase funding for key priorities like infrastructure, health care and education, while providing substantial tax relief to make life more affordable for Ontario families, increase competitiveness and spur investment and job creation in the province.

The government’s approach maintains a path to balance as part of its fiscal plan. The 2026 Budget continues to take a prudent and financially responsible approach through sustained investments in key public services, while maintaining the fiscal flexibility needed to respond to changing conditions and support for the people of Ontario.

Highlights include:

Quick Facts

  • Ontario’s 2025–26 deficit is projected to be $12.3 billion — an improvement of $2.3 billion compared to the outlook published in the 2025 Budget.
  • Ontario’s prudent plan does not raise taxes or cut services, and Ontario is one of the only provinces that retains a path to balance.
  • Over the medium term, the government is projecting deficits of $13.8 billion in 2026–27 and $6.1 billion in 2027–28, before planning for a surplus of $0.6 billion in 2028–29.
  • Ontario’s real GDP rose by an estimated 1.2 per cent in 2025 and is projected to rise by 1.0 per cent in 2026, 1.7 per cent in 2027, 1.8 per cent in 2028 and 2.0 per cent in 2029.
  • Ontario’s 2025–26 net debt-to-GDP ratio is now forecast to be 36.8 per cent, a decrease of 1.1 percentage points from the 37.9 per cent forecasted in the 2025 Budget, which is primarily due to a lower-than-projected deficit. Over the medium-term outlook, the net debt-to-GDP ratio is forecast to stay below the target of 40.0 per cent, demonstrating that Ontario continues to make positive progress towards reducing the debt burden.

Additional Resources