Ontario Tables 2025 Budget Amid Global Uncertainty, Targets Resilience and Growth

$200B Infrastructure Push, Tax Relief and Critical Minerals Investment Anchor “Plan to Protect Ontario”

TORONTO — Facing ongoing U.S. trade tensions and economic uncertainty, Ontario Finance Minister Peter Bethlenfalvy unveiled the 2025 provincial budget this week, promising bold investments to shield workers and businesses while positioning Ontario as an economic leader.

Titled “A Plan to Protect Ontario,” the $200-billion roadmap outlines a decade-long capital investment strategy that aims to grow strategic sectors, accelerate job creation, and reinforce key public services. Central to the plan are new funds for infrastructure, skills development, and critical minerals processing — all part of what Bethlenfalvy called a “resilient and self-reliant” economic path forward.

“We’re making the investments in workers, infrastructure and services that will protect Ontario, no matter what,” said Bethlenfalvy.

Infrastructure and Industry: Big Spending to Build

Ontario’s 10-year capital plan includes:

• $61 billion for public transit

• $30 billion for schools and childcare spaces

• $56 billion for health care infrastructure

• Nearly $30 billion for highway projects

For 2025–26 alone, $33 billion in capital spending is earmarked — the largest annual figure in Ontario history.

A new $5 billion “Protecting Ontario Account” will offer emergency support to businesses impacted by U.S. tariffs or other global disruptions. Another $500 million is being allocated to launch the Critical Minerals Processing Fund, aimed at ensuring Ontario-mined resources are processed domestically to strengthen local supply chains.

Tax Cuts and Cost Relief

The province is also taking steps to lower household costs and incentivize business investment. The budget proposes:

• Making gas and fuel tax cuts permanent, saving households about $115 annually

• Removing tolls on Highway 407 East, which could save commuters up to $7,200 per year

• Enhancing the Ontario Made Manufacturing Investment Tax Credit, with a temporary increase from 10% to 15% for private firms and a new 15% non-refundable credit for public corporations

These measures are expected to return an additional $1.3 billion to businesses over three years.

Indigenous Investment and Equity

The 2025 Budget triples the value of loan guarantees under the Indigenous Opportunities Financing Program, raising the total to $3 billion and expanding its scope beyond electricity to include energy, mining, and pipelines.

In addition, $70 million over four years will go toward the Indigenous Participation Fund to support engagement in resource development, while $10 million will be invested in new scholarships for First Nations postsecondary students pursuing careers in the sector.

Skilled Trades and Training

Another $1 billion will be added to the province’s Skills Development Fund, bringing the total to $2.5 billion through 2028. The funding will support training programs and the construction of new trades-focused training centres across Ontario.

Fiscal Outlook

While projecting a $6 billion deficit in 2024–25 — nearly $4 billion lower than last year’s forecast — the province expects deeper shortfalls in the coming years: $14.6 billion in 2025–26, and $7.8 billion in 2026–27, before balancing the budget with a $200 million surplus in 2027–28.

The net debt-to-GDP ratio is projected to remain below 39% over the medium term, reflecting cautious optimism and a measured approach to long-term fiscal balance.

Follow GTA Today on social media for more local news and updates. #GTAToday