Local MPP said budget may be expensive

Lee Griffi, Post Contributor

Ontario’s finance minister tabled the 2026 provincial budget last week, and the reaction from Oxford County’s Conservative MPP is positive.

The 231-page document lays out plans for a record $226 billion in program spending while projecting a deficit that is expected to reach $13.8 billion this year, up from the $7.8 billion projected last year.

Ernie Hardeman said he doesn’t always like spending so much money, but at this point, the government needs to help build a strong economy.

“It doesn’t just happen. We are going to build a lot of new infrastructure and that means there will be a lot of people earning a good paycheque. Building at a time when we need to increase employment is a great way of dealing with it.”

Hardeman said the government is investing in transportation, education, and healthcare infrastructure and added the budget is about protecting the people of Ontario.

“We have to find a way to make life more affordable, and there are two ways we can do that. One is to make sure people have jobs to go to and also to make sure we don’t have products being more expensive than they need to be.”

The government said it is protecting communities through a multi-year Tax Action Plan and the removal of the full 13 per cent Harmonized Sales Tax (HST) for all eligible buyers of new homes, providing a maximum rebate of $130,000.

“Reducing the administration costs of building a new home is so important. Not only is the tax reduction going to help, but we are going to make sure municipalities look at reducing the cost of development charges to reduce the cost of homes,” said Hardeman.

He added the budget will build Ontario’s economy while, at the same time, reducing the tax burden.

“This is a great way to present a budget. I think this is number 31 for me as an MPP, and I think it’s one of the best.”

The small business corporate income tax (CIT) rate is being cut by more than 30 per cent to 2.2 per cent, from 3.2 per cent, effective July 1. The government claims that over 375,000 Ontario small businesses would benefit from an additional $1.1 billion in CIT relief over the next three years.

“Ontario is navigating economic challenges with a pragmatic and prudent fiscal plan,” said Minister Peter 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.”

Tillsonburg Mayor Deb Gilvesy said the budget sends an important signal about the need to support jobs, attract industry and keep the economy strong.

“Measures like lowering the small business tax rate from 3.2 per cent to 2.2 per cent will make a real difference for local entrepreneurs, helping them grow, hire, and reinvest in our community,” she said. “The additional investment in the Invest Ontario Fund is also a positive step. By supporting key sectors like advanced manufacturing, AI, and defense, the province is positioning Ontario to compete for the kinds of jobs and industries that drive long-term economic growth.”

With the recent completion of the second phase of the VanNorman Innovation Park being online, the mayor believes Tillsonburg is well positioned.

“Tillsonburg is ready to be part of that growth,” Gilvesy said. “Tillsonburg has available industrial land and a strong track record of supporting business expansion. These provincial supports are welcomed and will help communities like ours attract new employers and create good local jobs.”

She does realize competition for industrial business is fierce, though.

“Jurisdictions like Michigan are putting forward aggressive incentive packages to attract investment. It’s critical that Ontario continues to stay competitive so we don’t lose opportunities to other regions.”

The government is expanding investment in the Primary Care Action Plan to $3.4 billion from 2025 to 2029. The plan’s goal is to connect everyone in Ontario to a family doctor or primary care provider.

An additional $300 million over six years will be available through the Community Sport and Recreation Infrastructure Fund to help meet the needs of growing communities as they foster healthier and more active lifestyles for families.

$9.4 million is also being invested over three years to renew grants for the Summer Company and Starter Company Plus programs delivered through the Small Business Enterprise Centres network.

For the first time in Ontario history, the province’s net debt is forecast to cross the half-trillion-dollar mark, with the government forecasting a $514 billion debt.

- With files from Jeff Helsdon