Ontario delivers record $214 billion budget, carrying massive deficit

The Ontario government is unveiling a record $214 billion budget but has a deep hole to fill.

The new budget has just over $74 billion for health care and large allocations for housing.

However, the province is projecting a $9.8 billion deficit, mainly due to slower economic growth and less money coming in.

“Like the rest of the world, Ontario continues to face economic uncertainty due to high-interest rates and global instability,” said Finance Minister Peter Bethlenfalvy. “These challenges are putting pressure on Ontario families and their finances, as well as on the province’s finances.”

“As we invest in key public services and infrastructure, including new roads, highways and the largest public transit expansion in North America, we refuse to offload the costs onto hardworking Ontario families or municipalities.”

Highlights of the Province’s actions include:

Investing an additional $100 million in 2024–25 in the Skills Development Fund Training Stream and continuing to implement the $224 million Skills Development Fund Capital Stream to support workers and continue developing Ontario’s world-class workforce.
Building Ontario’s skilled trades pipeline by investing an additional $16.5 million annually over the next three years through the Skilled Trades Strategy to support a variety of programs that attract more young people into the skilled trades, simplifying the system and encouraging employer participation in apprenticeships.
Keeping costs down for people and businesses by proposing to extend the temporary cuts to the gasoline tax rate by 5.7 cents per litre and the fuel (diesel) tax rate by 5.3 cents per litre until December 31, 2024. This would save Ontario households $320 on average over the two-and-a-half years since the cuts were introduced in July 2022. This relief is especially important as the federal carbon tax is set to increase on April 1, 2024.
Establishing the first medical school in Canada that is primarily focused on training family doctors at York University.
Helping more people access convenient health care by investing an additional $965 million in operating funding in 2024–25, including through a four per cent increase in total base hospital operations for an unprecedented second year in a row.
Connecting approximately 600,000 more people to primary health care through new and expanded interprofessional primary care teams with a total additional investment of $546 million over three years, starting in 2024–25.
Investing an additional $2 billion in the home and community care sector to support expansion and increase compensation for frontline workers.
Strengthening and growing the healthcare workforce by investing $743 million over three years to help address immediate healthcare staffing needs and prepare for the future.
Adding more healthcare workers in underserved communities with more than $30 million in funding to date through the expanded Ontario Learn and Stay Grant, and investing $50 million over three years to recruit and retain healthcare workers in Northern communities.
Enhancing the health and well-being of Indigenous and Northern communities with $94 million over three years for programs that provide culturally responsive care tailored to the needs of these communities.
Improving mental health and addiction services through an additional investment of $396 million over three years, building on the existing historic investment of $3.8 billion over 10 years.
Providing financial support to about 100,000 additional low-income seniors by expanding the Ontario Guaranteed Annual Income System (GAINS) program and, for the first time in the province’s history, indexing the GAINS benefit to inflation.
Making electricity more affordable for thousands of additional low-income families by increasing income eligibility thresholds for the Ontario Electricity Support Program (OESP) up to 35 per cent as of March 1, 2024.
Keeping costs down for drivers by proposing to ban any new tolls on new and existing provincial highways and freezing fees on driver’s licences and Ontario Photo Cards, saving drivers an estimated $66 million over the next five years.
Modernizing auto insurance to provide Ontario drivers with more affordable options, improved access to benefits and a more modern system.
Increasing housing supply and addressing housing affordability by extending authority to all single- and upper-tier municipalities to impose a municipal tax on vacant homes. A new policy framework will also set out best practices for implementing a Vacant Home Tax and encourage municipalities to set a higher Vacant Home Tax rate for foreign-owned vacant homes.
Deterring foreign investors from speculating on the province’s housing market by strengthening Ontario’s Non-Resident Speculation Tax — the most comprehensive tax of its kind in Canada — with amendments to support compliance and improve fairness.
Supporting individuals facing unstable housing conditions and dealing with mental health and addiction challenges by investing an additional $152 million over the next three years towards various supportive housing initiatives designed to support vulnerable people.
Protecting people and businesses by introducing legislation that would require the provincial government to first ask Ontario voters, via a referendum, before implementing any new provincial carbon pricing program.
Getting students back to basics with close to $172 million for the 2024–25 school year for targeted math and reading supports and an updated kindergarten curriculum starting in September 2025.
Increasing the government’s investment in the Ontario Autism Program by $120 million in 2024–25, which will double the increase provided in 2023–24.
Fighting auto theft with a plan that includes $49 million over three years to help police put auto thieves behind bars.
Providing an additional $13.5 million over three years, on top of existing investments of $1.4 billion over four years, to enhance initiatives that support women, children, youth and others who are at increased risk of violence or exploitation.

“We will keep investing prudently to help create stronger communities and better opportunities for future generations,” said Bethlanfalvy.

The entire document can be found on the Ontario government website.

The opposition was quick to denounce the budget.

NDP leader Marit Stiles says it was a missed opportunity by the Ford government to bring much-needed change.

“If you’re looking for change, Ford’s budget is not for you,” said Stiles. “People are looking for better health care and homes they can afford. Instead, they got an uninspired statement from a government that is out of touch and out of ideas.”

Liberal leader Bonnie Crombie called it a do-nothing budget that does little to help families and businesses that are struggling.

“The sad reality is Doug Ford has no intention of making life better for Ontario families and businesses,” said Crombie. “He is deliberately refusing to fund healthcare, education and the public services we all rely upon. He is choosing to undercut our public institutions so he can further his privatization agenda and help his rich insider friends make more money.”

Similar sentiments from the Green Party.

“Presented with the opportunity to deliver real relief to the millions of Ontarians facing a cost-of-living crisis, the Ford government has responded with a resounding no,” said leader Mike Schreiner.