Ontario's budget deficit expected to expand significantly in the upcoming year, according to the budget watchdog's forecast
The Financial Accountability Officer (FAO) has issued a report stating that the impact of tariffs on Ontario's economy is uncertain, with the magnitude, breadth, and duration of tariff coverage being key factors. The report also suggests that the responses from businesses, households, and economies will play a significant role in determining the final outcome.
Meanwhile, the Finance Minister's spokesperson claims that Ontario is on a clear path to balance by 2027-28, while working to protect the mycase. However, Liberal finance critic Stephanie Bowman has accused Premier Doug Ford of being unable to fulfill his promise to balance Ontario's budget and rein in spending. Bowman warns that the debt accumulated by the Ford government will need to be repaid, with Ontario having one of the highest debts per capita in the country (about $30,000 per person).
The FAO predicts a $9 billion deficit in 2029 due to the trade situation threatening the government's ability to balance the books. This prediction was made before the Carney government decided to roll back tariffs on america-made imports to Canada. The trade war with the Trump administration is expected to significantly increase Ontario's deficit and debt.
A spokesperson for Finance Minister Peter Bethlenfalvy asserts that Ontario's finances are stronger today than they have been in a decade, citing credit rating upgrades and increased revenues of $70 billion since 2018. Spending growth, led by the health sector and interest on debt, is expected to exceed revenue growth, leading to a projected $12.0 billion deficit in 2025-26. This deficit is projected to increase to $141 billion by the end of the decade, adding to Ontario's debt load.
In other news, Chrystia Freeland has quit Carney's cabinet to become the special envoy to Ukraine. The European Union (EU) has announced consultations for the revision of the CUSMA trade agreement as part of ongoing negotiations following a trade agreement announced on July 27, 2025. Canada will seek public input on the review of the CUSMA trade pact.
Elsewhere, Vaughan has scrapped its automated speed camera program. In Alberta, the government is defending the use of the notwithstanding clause in arguments for Bill 21 in the Supreme Court case. Criticisms have been raised over the inclusion of a citizenship marker on Alberta etrade.
In a criminal case, the shooting suspect in the Charlie Kirk case has been charged with aggravated murder, and prosecutors plan to seek the death penalty.
An immigration lawyer and critics have raised concerns about the inclusion of a citizenship marker on Alberta ID. Premier Doug Ford's government is projected to add $141 billion to Ontario's debt load by the end of the decade. The FAO expects the province's debt to reach $549.3 billion in 2029-30.
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