Overview

• Ontario's 2025 budget introduces an $11 billion tariff relief package, including a $5 billion Protect Ontario fund aimed at providing emergency liquidity and job protection for businesses impacted by U.S. tariffs.
• The province forecasts a $14.6 billion deficit for 2025-26, a significant increase from the $1.5 billion projected last fall, citing economic strain from tariffs and slower GDP growth.
• Unemployment has climbed to 7.8%, the highest since the pandemic, with the Financial Accountability Office warning of up to 68,100 job losses this year if trade disruptions persist.
• The budget delays a return to balanced books until 2027-28 while expanding the manufacturing tax credit to 15% and increasing infrastructure spending to stimulate economic growth.
• Critics argue the budget neglects housing and healthcare needs, as housing starts continue to fall short of targets and key public services face funding challenges.