A Plan to Protect Ontario
In the face of continued tariffs and economic uncertainty, our government has put our plan to protect Ontario into action — and we are seeing the results.
Ontario continues to be challenged. Workers, families and businesses in every corner of the province are feeling the impact of the unwarranted U.S. tariffs and their impacts on Canada, and government finances are not immune. Given these external factors, Ontario’s fiscal outlook, as presented in the 2026 Ontario Economic Outlook and Fiscal Review, has deteriorated since the 2026 Budget, with the path to a balanced budget delayed to 2029–30.
Despite ongoing economic challenges, Ontario’s fiscal plan continues to enable the government to respond to changing conditions, while continuing to invest in priorities that matter most to families and communities.
Moreover, our government’s plan to protect Ontario by building the most competitive, resilient and self-reliant economy in the G7 is delivering real results, from Northern mines and road networks that are now under construction to factories and businesses that are reshoring supply chains, building new trading partnerships overseas and competing on a global stage to attract and create the jobs of the future.
Fortifying Ontario’s Industrial Base
The government has moved quickly to respond to U.S. trade actions, providing nearly $30 billion in tariff relief and support for workers and businesses since April 2025, including measures to build long-term economic resilience and prosperity.
Ontario continues to fortify our industrial base by supporting our auto, steel, and forestry industries to ensure they can keep operations running, keep workers on the job, reshore supply chains and build for the future. These actions are not just helping businesses keep their doors open in the face of tariffs, they are revitalizing these sectors and solidifying their place as a foundation for Ontario’s future economic growth. Whether the Ontario steel is used to build the first small modular reactor in the G7, or by Ontario manufacturing workers directing their expertise to new breakthroughs in defence technology, Ontario’s historic strengths are creating new opportunities for future generations.
By expanding the eligibility for programs, such as the Ontario Together Trade Fund (OTTF), the Trade-Impacted Communities Program (TICP) and the Protect Ontario Financing Program (POFP), the government is helping impacted businesses to protect jobs, support investment and maintain stability during this period of heightened economic uncertainty. Ontario also continues to work with the federal government on additional opportunities to support our key sectors, helping to protect and defend Canada’s economic security and sovereignty. Our Buy Ontario policy is ensuring that Ontario tax dollars are being used to support Ontario workers wherever possible, as the government continues to deliver on our $210 billion capital plan.
Building Ontario for Growth
Our government is also delivering on our commitment to protect Ontario’s economy for the long term by creating the conditions for growth, investing in workers and creating a business environment that will help Ontario welcome the jobs of the future in fields such as defence, artificial intelligence (AI), critical minerals, energy, agriculture and agribusiness and more.
Ontario already has early advantages in these fields, with a range of cutting-edge defence technology companies from Ottawa to Toronto to London. Our province also has a skilled AI workforce, graduating 1,100 AI Masters students every single year. We’re ranked first in Canada and second in the world when it comes to attracting mining investment. Shovels are now in the ground on the roads to the Ring of Fire, which are on track to be completed five years ahead of schedule to unlock mining activity that will add 70,000 jobs and $22 billion to Ontario’s economy.
Ontario’s nuclear buildout is another historic growth opportunity that will add $800 billion and 150,000 jobs to our economy through projects like the refurbishment of the Bruce, Pickering and Darlington nuclear generating stations, the construction of the first small modular reactor in the G7 and the construction of the first new large-scale nuclear generating stations in generations. Ontario is strengthening the nuclear supply chain that will employ workers for decades.
We are building on this record by increasing our competitiveness, giving businesses the confidence they need to set up, invest and create jobs here in Ontario. Furthering our ongoing work to cut red tape, we are reviewing every single business-facing permit in Ontario to speed up approval timelines and cut back on wait times. This work over the past year has already resulted in more than 50 per cent of permits being reviewed and the elimination of nearly 220,000 permitting days. We’ve transformed the province’s species at risk rules, are bringing common sense and consistency to conservation authorities and have eliminated the backlog in archeology assessments — all to speed up approvals and make Ontario’s economy more competitive. This is on top of our previous red tape reduction and supports, which are saving businesses $10.2 billion and 1.8 million hours every year and setting Ontario apart as a competitive environment in which to invest and create businesses.
Through our multi-year Tax Action Plan, we are also lowering costs for families and businesses. To strengthen our competitiveness, we are planning to lower the cost of capital investments for Ontario businesses by providing over $8 billion in additional relief over the next five years. Combined with accelerated writeoff measures announced earlier this year, this will bring the total Ontario tax relief for capital investments to more than $12 billion over the next five years, supporting competitiveness and helping businesses grow and create jobs.
We are also providing more than $50 million in additional tax support over the next three years to lower the cost of research and development (R&D). By allowing businesses to write off capital costs sooner and expanding R&D support, our government is unlocking new opportunities for growth, attracting investment and positioning Ontario as a leading destination to do business.
We have cut Ontario’s small business tax rate by more than 30 per cent, providing more than 375,000 small businesses a $1.1 billion tax cut over the next three years, saving each of them up to $5,000 every single year.
To make it easier for families to own a home and support our housing and construction sector, we are lowering the cost of homeownership and providing relief of up to $200,000 or more in many Ontario municipalities, through a combination of our temporary Harmonized Sales Tax (HST) relief on new homes, as well as our Development Charge Reduction Program, which is reducing municipal fees that would otherwise add hundreds of thousands of dollars to the cost of new homes. Collectively, these actions are helping more Ontario families make one of the most important purchases of their lives and are keeping thousands of workers on the job across Ontario.
We know that Ontario families are also feeling the strain of ongoing economic uncertainty, which is why this year alone, we are providing over $12.5 billion to support families and individuals. From permanently cutting gas and fuel taxes, scrapping the licence plate renewal fee and stickers, removing and banning tolls and lowering transit fares through One Fare, our government will take every opportunity to keep costs low for families.
By keeping taxes and fees low, we are increasing Ontario’s competitiveness, giving businesses the confidence they need to invest in Ontario and helping families keep more of their hard-earned money.
Ontario is a national leader in promoting free trade across Canada by removing internal trade barriers that have been holding back trade between the provinces, opening new opportunities for workers from Ontario and across Canada to work, trade and do business across the country. Ontario’s expectations are that other provinces and territories will continue eliminating all internal trade barriers, which are estimated to cost the nation’s economy up to $200 billion every year in forgone economic activity and gross domestic product (GDP).
Ontario is building the skilled workforce of the future by investing in the Skills Development Fund, which has supported more than 1,000 training projects, and aimed to help over 700,000 workers train for in-demand sectors. We are also investing $1.7 billion to support 70,000 additional seats at publicly assisted colleges and universities in high-demand fields like science, technology, engineering and mathematics (STEM), AI, health care and the trades.
Ontario continues to get shovels in the ground, keep workers on the job and drive economic growth through our $210 billion 10-year capital plan, which is the largest plan to build in Ontario’s history. We are building critical new highways, including Highway 413 and the Bradford Bypass, and we are expanding roads and highways across the province to keep people and goods moving. We are also building the largest expansion of public transit in North America. Work is now well underway on historic transit projects, including the Ontario Line, the Yonge North Subway Extension, the Scarborough Subway Extension, the Eglinton Crosstown West Extension, the Hazel McCallion Line and the Hamilton Light Rail Transit (LRT). Fourteen years after it was cancelled, our government is also bringing back the Northlander, connecting communities from Timmins and Cochrane all the way to Toronto.
A strong economy is the basis of strong services that Ontario families rely on. Our government is continuing to invest to improve these services, including by making historic progress on our $3.4 billion Primary Care Action Plan. This plan has already connected more than 500,000 Ontario patients to a family doctor or primary care provider and is on track to connect everyone in the province by 2029. Ontario leads the country with the shortest wait times for key surgeries in Canada.
Respecting Taxpayers
Our government’s plan to protect Ontario relies on responsible fiscal management and respect for taxpayer dollars.
During this time of heightened global economic uncertainty, it is more important than ever that the government remain prudent. This means ensuring government spending is sustainable over the long term while continuing to deliver the greatest value for taxpayer dollars.
Ontario has a plan to improve the efficiency and reliability of public services, while ensuring responsible stewardship of resources by simplifying processes, reducing administrative burdens and strengthening oversight.
Progress is being made in reviewing priority areas to identify efficiencies, manage growing cost pressures and improve frontline program and service delivery.
Ontario’s public service employee growth has remained below comparable provinces and the federal government, and the government has taken action to review our provincial agency sector to strengthen oversight and cost management.
We will continue to identify opportunities to reduce error, waste, abuse and fraud across government programs to guarantee respect for taxpayer dollars.
Our Plan to Protect Ontario in Action
Ontario is being challenged, but Ontario is up to the challenge.
We have everything we need right here at home to build the most competitive, resilient and self-reliant economy in the G7, supporting good-paying jobs for Ontario workers and keeping Canada’s future in Canadians’ hands. The people of this great province gave us a mandate. We’re delivering. Our government will continue implementing our plan to protect Ontario, leveraging our province’s incredible resources, expertise and world-class workforce to support workers and families in every corner of the province.
Original signed by
The Honourable Peter Bethlenfalvy
Ontario’s Minister of Finance