Friday, March 27, 2026
The Government of Ontario tabled its 2026 Budget, which includes a balanced budget being pushed back and committing more than $200 billion over 10 years for infrastructure, focusing on highways, transit, and community projects to support growth, with $37 billion planned for 2026–27 alone. Key investments include accelerating Highway 413 and Bradford Bypass construction, substantial hospital expansion, and a $300M community sport/recreation fund.
Last year, the province projected a balanced budget in 2027-28. Officials now project a deficit of $13.8 billion next year and $6.1 billion the year after, pushing the possibility of running a small surplus to 2028-29. The 2025 budget had predicted a $7.8-billion deficit for this upcoming year.
For projects such as Highway 413 and plans for a new convention centre in Toronto and the expansion of Billy Bishop Airport, there is no breakdown of costs.
“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.”
The Province also announced it is providing further relief for home buyers by removing the full 13 per cent of the Harmonized Sales Tax (HST) for all eligible buyers of new homes valued up to $1 million for a maximum rebate of $130,000 in relief to an eligible buyer and the amount would be maintained for new homes valued up to $1.5 million. The federal government has agreed to cost-share with Ontario in support of provincial housing initiatives, subject to passage of federal legislation, which would approximately cover the federal five per cent portion for the HST that is being removed from new homes in Ontario. This partnership would provide almost $2.2 billion in total joint tax relief for housing in Ontario.
Featured image: (Government of Ontario)
