Ontario projects a balanced budget by 2029-30 and backs key industries

Ontario’s 2026 Fall Economic Statement projects the province will return to a balanced budget in 2029-30, after deficits of $16.9 billion in 2026-27, $12.7 billion in 2027-28 and $6.7 billion in 2028-29.

Key measures include:

• Business investment: A proposed $8 billion Ontario tax cut would let businesses immediately write off the full value of a wide range of assets. After federal legislation passes, the measure is estimated to attract at least $11 billion in additional investment and create 30,000 jobs.
• Industry support: An $8.7 billion Canada-Ontario plan targets the steel, automotive and critical minerals sectors, including support for workers and businesses affected by U.S. tariffs.
• Permit changes: The province aims to eliminate, streamline or transform 35 to 50 per cent of its 375 business-facing permits by the end of 2028.
• Research and development: Restoring capital spending as an eligible expense for two provincial tax credits is expected to provide more than $50 million in added tax support over three years to about 700 businesses.

The statement also reports more than $12.5 billion in supports for families and individuals in 2026-27, including housing, education, transit, energy affordability and child care.