October 31, 2026
184
Thursday, the Ontario finance minister released the 2026 Ontario Economic and Fiscal Review: A Plan to Protect Ontario, which furthers the government’s plan to protect Ontario workers, businesses and communities while building the most competitive, resilient and self-reliant economy in the G7.
According to a press release by Huron-Bruce MPP Lisa Thompson, the provincial government is investing to fortify key tariff-impacted industries while improving Ontario’s competitiveness in order to attract good-paying jobs in strategic sectors, including advanced manufacturing, critical minerals mining and refining, artificial intelligence, defence and more.
Ontario’s workers, families and businesses continue to face significant challenges from ongoing United States (U.S.) trade actions, geo-political instability and broader global economic uncertainty. Despite these challenges, Ontario’s fiscal plan maintains the flexibility to respond to changing conditions, while continuing to invest in the priorities that matter most to families and communities.
Given these external factors, Ontario’s fiscal outlook, presented in the 2026 Ontario Economic and Fiscal Review, projects a path to a balanced budget in 2029-30.
“Under the leadership of premier Doug Ford and minister Peter Bethlenfalvy, the fall economic statement reinforces our commitment to safeguarding our local economy while setting a clear path toward a balanced budget,” said Thompson. “Through key initiatives, such as expanding tax relief for small businesses, investing in critical infrastructure, and reducing administrative red tape, we are protecting local workers, strengthening primary industries, and ensuring Huron-Bruce and rural Ontario communities remain a competitive place to live, work, and grow.”
Through responsible fiscal management and targeted investments, Ontario is strengthening domestic economic opportunities, reducing internal trade barriers, supporting workers and job creators, investing in critical infrastructure through the $210-billion capital plan, and maintaining the flexibility needed to respond to evolving economic challenges. The government’s fiscal plan maintains a sustainable path forward while supporting the long-term growth and competitiveness of Ontario’s economy.
Highlights of the statement include:
Strengthening Ontario’s competitiveness through the Ontario Competitiveness Tax Cut, part of Ontario’s multi-year Tax Action Plan. This measure would provide $8-billion in provincial tax relief - the provincial component of the federally-announced Productivity Mega Deduction - which would lower the cost of business investment by permanently allowing businesses to immediately write off 100 per cent of the value of a wide range of assets. Following the passage of federal legislation, the measure is estimated to attract at least $11-billion in additional capital investment to the province, creating 30,000 new jobs and adding $6-billion to gross domestic product (GDP). Combined with the accelerated write-off measures included in the 2026 Budget, this would bring Ontario’s total tax relief in support of business investment to more than $12-billion over five years.
Continuing to fortify Ontario’s industrial base and attract jobs and investment through the new $8.7-billion Canada-Ontario action plan to strengthen the province’s steel, automotive and critical minerals sectors. The plan will help protect workers and businesses affected by U.S. tariffs, support the modernization of key industries, unlock critical mineral development and prepare Ontario to compete in the industries of the future, including advanced manufacturing, defence, energy, electric vehicles and strategic infrastructure. By strengthening domestic supply chains, expanding market opportunities and supporting major investments, Ontario is building a more competitive, resilient and self-reliant economy.
Cutting red tape to build the most competitive economy in the G7 by reducing regulatory burden and accelerating approvals for businesses. This includes a commitment to review every one of the province’s 375 business-facing permits over three years, with the goal of eliminating, streamlining or transforming 35-50 per cent by the end of 2028. In the first year, the government has already reviewed 51 per cent of the 375 business-facing permits, of which it has eliminated, streamlined or transformed 65 per cent of permits reviewed. Ontario is also eliminating nearly 220,000 days’ worth of permit processing times, accelerating the delivery of critical infrastructure projects and supporting labour mobility.
Taking swift action by announcing nearly $30-billion in tariff relief and supports for workers and businesses since April, 2025, including measures to build long-term economic resiliency and prosperity. This includes a six-month interest and penalty-free deferral period from April 1 to Oct. 1, 2025, for select provincially-administered taxes, making up to $9-billion in liquidity relief available to approximately 80,000 businesses to help ease financial pressures. The government has also expanded eligibility for the Ontario Together Trade Fund (OTTF) and the Protect Ontario Financing Program (POFP) to provide businesses with the critical support to keep their doors open, keep workers on the job and reshore their supply chains.
Enhancing support for research and development by restoring capital expenditures as eligible expenditures under the Ontario Research and Development Tax Credit and the Ontario Innovation Tax Credit, in parallel with recent federal enhancements. This is estimated to provide more than $50-million over the next three years in additional tax support, helping to lower the cost of research and development for about 700 businesses.
Respecting taxpayer dollars through responsible fiscal management and ongoing efforts to improve government efficiency, strengthen oversight and reduce administrative burden. The government measures include reviewing priority programs and services to identify efficiencies, reduce error, waste, abuse and fraud, and to improve investment outcomes and ensure resources are focused on delivering high-quality public services for Ontario families and businesses.
Supporting Ontario’s film and television sector by proposing to update eligibility for the Ontario Computer Animation and Special Effects (OCASE) Tax Credit. To help streamline support and simplify access to the 18-per-cent refundable corporate income tax credit, the government is proposing to transition eligibility for this credit to film and television producers only. This proposed approach would more closely align with eligibility in other Canadian jurisdictions and continue to support special effects and animation activity in Ontario.
Advancing the largest capital plan in Ontario’s history, with planned investments of more than $210-billion in planned investments over 10 years beginning in 2026-27. By keeping shovels in the ground, investments in highways, transit and community infrastructure are supporting jobs, driving economic growth and building stronger communities across the province. In Huron-Bruce, communities such as the Town of Saugeen Shores and Municipality of Brockton are excellent examples of benefitting from Ontario's commitment to build.
Investing about $30-billion over the next 10 years to build new and redeveloped schools and child-care spaces, to help ensure growing communities are provided with healthy learning environments and modern spaces. In Huron-Bruce for example, the province has recently announced its support toward developing a new Port Elgin elementary school, continuing to focus on and meet the local priority needs in rural communities.
Investing approximately $64-billion in health infrastructure over the next decade, including nearly $50-billion in capital grants to support more than 50 hospital projects and approximately 3,000 new hospital beds across Ontario. For example, the provincial government and South Bruce Grey Health Centre recently announced their joint partnership toward the redevelopment of the Kincardine hospital, that will transform emergency care, diagnostics, and patient experience for residents of Kincardine and surrounding communities.
Under Ford’s leadership, the government has never raised a tax, and remains committed to protecting rural Ontario from unnecessary financial burdens. This year alone, the province is saving people and families across the province nearly $12-billion. The government has:
o Cut the income tax for 1.1-million low-income workers.
o Removed the full 13-per-cent HST for eligible buyers of new homes to provide up to $130,000 in relief
o Further cut the Small Business Tax to 2.2 per cent from 3.2 per cent, saving more than 375,000 businesses $5,000/year
o Introduced the Low-income Individuals and Families Tax Credit (LIFT) to reduce income tax for 1.7-million low-income Ontarians
At the same time, the government is making targeted investments that matter to rural Ontario, including:
o Increasing the Ontario Municipal Partnership Fund (OMPF) to $600-million
o Doubling the Ontario Transit Investment Funding (OTIF) to $30-million
o Investing $400-million through the Ontario Community Infrastructure Fund (OCIF)
Through the Rural Ontario Development (ROD) Program, the government is continuing to help rural communities strengthen local economies, attract new investments, and help create and protect good-paying jobs close to home.
ADDITIONAL RESOURCES
Related Stories
No related stories.