Ontario's 2025 Budget Unveiled by Premier Doug Ford

In a bold move, Ontario Premier Doug Ford and Finance Minister Peter Bethlenfalvy have unveiled the province's 2025 budget, positioning it as a robust strategy to counter U.S. tariffs and fortify the economy. Here’s a closer look at six crucial takeaways from this significant financial plan.

1. Delayed Deficits and Surplus Plans

Facing mounting challenges from U.S. tariffs, Ontario has pushed back its timeline for achieving a balanced budget. Although the projected deficit for 2024-25 has decreased compared to previous forecasts, the financial outlook is concerning. The budget reveals a staggering $14.6 billion deficit expected in 2025-26, followed by $7.8 billion in 2026-27. Plans for a return to surplus have been postponed by a year.

2. Support for Businesses Facing Tariffs

Building on recent promises, the budget introduces significant relief measures for businesses impacted by tariffs. In addition to an already announced $11 billion in aid involving six months of tax deferrals, Ontario is launching a new $5 billion fund dubbed the 'Protecting Ontario Account'. This initiative aims to offer $1 billion in immediate relief for businesses struggling to stay afloat amidst tariff disruptions.

3. Investment in Indigenous Partnerships and Minerals

A notable aspect of this budget is the commitment to Indigenous partnerships and the development of Ontario's critical minerals sector. The government plans to inject $500 million into a new critical minerals processing fund to attract investment. Furthermore, the province is tripling loan guarantees for Indigenous projects to an impressive $3 billion, expanding eligibility to include energy, pipelines, and mining initiatives.

4. Changes in Alcohol and Cannabis Regulations

In a transformative update to the liquor market, the government is reducing the basic tax on spirits sold at distilleries by 50%. Additionally, taxes for microbreweries and ciders will be lowered. While the Liquor Control Board of Ontario anticipates a revenue drop of about $300 million due to increased market competition, initiatives like a $35 million support program for Ontario grapes aim to boost the local industry.

5. Housing Market Hits a Snag

The housing sector is facing a serious downturn, putting the government's ambitious goal of building 1.5 million homes by 2031 in jeopardy. Current projections indicate only 72,000 new housing starts this year, far below the required average of 150,000 annually. The new Housing Minister, Rob Flack, acknowledges these challenges and the urgent need to reform housing building processes.

6. Enhanced Border Security Initiatives

In a move to bolster security at the U.S. border, the government is allocating $57 million for two new H-135 helicopters stationed in Niagara and Windsor. This investment follows a previous $134 million spent on five police helicopters aimed at enhancing monitoring and addressing violent crimes in the Greater Toronto Area and Ottawa.