Ontario tables big spending budget
- 1 day ago
- 4 min read
By Lee Griffi
Ontario’s finance minister tabled the 2026 provincial budget last week, and reaction from a pair of area Conservative MPPs has been 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. Kitchener-Conestoga MPP Mike Harris called the spending budget a safety net for Ontarians.
“When you look at what’s happening with the U.S., trade, tariffs and jobs, it’s to make sure we are bolstering the manufacturing sector, jobs in the trades and housing – all of the things that employ a lot of people, especially in our area here – to be able to make sure if the economic slowdown continues and if we still have a president in the United States who is hellbent on making life difficult for Canadians, that we’re there to support Ontarians as much as we can.”
Harris admitted it is an intentionally big budget to help the industries going through hard times. He added processes are built into funding streams to ensure only those who need the money will get it.
“They’ll have to apply for it … and there are a lot of checks and balances. If the programs are there, we hope they are taken advantage of. It’s a good plan for Ontario and for our area.”
One of the funding streams available is the Tariff Impacted Industries Fund, a provincial financial support program aimed at supporting businesses hit by international trade tariffs. Harris added removing the HST on new homes sold up to $1 million will also make a big difference.
“It could save up to $130,000 off the purchase price, which is fantastic. There is also a small-business tax cut, and almost 90 per cent of Ontarians are employed by a small business. This will help owners reinvest or put a little bit more money in their pockets.”
The small business corporate income tax (CIT) rate is being cut by more than 30 per cent, from 3.2 per cent to 2.2 per cent, effective July 1. The government claims over 375,000 Ontario small businesses would benefit from the $1.1 billion in tax relief over the next three years.
The Gazette asked Harris if there was anything in the budget Wilmot residents could be excited about. He pointed to funding to connect more people in the township to primary care through Woolwich Community Health.
“It will connect several thousand patients with primary care in Wilmot Township. I know it is a big issue here, not just in the township, but in the region as a whole. We have some of the longest wait times in the province, so we are doing what we can to help with that.”
Oxford MPP 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 health-care 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.”
Oxford County’s top politician said the budget appears to address current economic uncertainty, with an emphasis on building a resilient economy and supporting families. Warden Marcus Ryan added he’s hopeful the document will make life a little easier for county residents.
“The budget acknowledges the infrastructure challenges for municipalities related to growth, an area of discussion and advocacy recently identified by Oxford County council. We’re also optimistic about additional funding for supportive housing and long-term care operating funding, both of which are key needs in Oxford.”
He added that it does not address long-term municipal fiscal sustainability.
“That was something we were hoping to see. As a municipality, we’re committed to working with the provincial government to address this issue to ensure we truly are building strong and resilient communities.”
Waterloo regional Chair Karen Redman also weighed in on the budget, releasing a statement last week.
“I am pleased to see investments to support small businesses, critical housing-enabling infrastructure, hospitals and long-term care in Budget 2026. As we continue to grow as a community, our needs deepen. It’s important that housing-enabling infrastructure, well-paying jobs and health-care support remain at the forefront as we remain committed to ensuring wellbeing, affordability and prosperity for all in Waterloo Region.”
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.