Despite all that spending, the province said Thursday the deficit this year is now projected at $13.5 billion, compared to a projected $14.6 billion in the spring budget. The smaller deficit comes amid higher-than-expected revenue for 2025-26 of $223.1 billion — $3.2 billion more than forecast in the spring budget. The province says the increase is driven mainly by stronger tax revenue and broader public sector revenue. <\/p>\n
Bethlenfalvy says the province is providing a $100 million injection into the Ontario Together Trade Fund \u2013 an initiative meant to help businesses impacted by trade disruptions \u2013 bringing it up to a total of $150 million. <\/p>\n
While it wasn\u2019t included in the economic update, the Ministry of Transportation confirmed Thursday that it has awarded $9.1 million to a Waterloo, Ont., company to do a feasibility study on Premier Doug Ford\u2019s proposed Highway 401 tunnel<\/a> \u2013 a project the premier has touted as a major initiative to stimulate the economy and fight gridlock. <\/p>\n The province is also looking at carrying out consultations on standardizing the rules for ride-share services, which can vary across municipalities, and is eyeing the creation of a new pension option. <\/p>\n Previously announced initiatives include removing the HST on new homes up to $1 million for first-time homebuyers, $1.1 billion for home care, scrapping fixed election dates and raising the political donation limit to $5,000. <\/p>\n Weaker economic indicators<\/p>\n While there were no major changes to the government\u2019s plan, the economic update does reflect a situation where tariffs continue to chip away at Ontario\u2019s finances, though government officials caution it is very difficult to factor in the tariffs precisely because they keep changing. <\/p>\n Real GDP growth is expected to dive from 1.4 per cent in 2024 to 0.8 per cent this year. It\u2019s projected to climb to 0.9 per cent in 2026 and 1.8 per cent in 2027. <\/p>\n Housing starts are worse than projected in the spring, just 64,300 compared to a projection in May of 71,800. The projection for housing starts for the next three years has also been adjusted downward by a few thousand each year compared to projections in the spring. <\/p>\n Ontario is also projecting higher unemployment rates over the next few years, compared to the spring budget. The 2025 estimate has been adjusted to 7.8 per cent from 7.6 per cent in the spring. A rate of 7.6 per cent is expected in 2026, up an extra 0.3 per cent from the budget. That\u2019s expected to drop to 7 per cent in 2027 and 6.5 per cent in 2028. <\/p>\n When it comes to job numbers, the province is projecting fewer new jobs created this year. While the spring budget forecast 73,000 new jobs this year, the government now says that number will be closer to 70,000. <\/p>\n While the province is now projecting 2,000 more jobs will be created in 2026 than the budget suggested, that number is still low — just 35,000. It is also projecting just 66,000 new jobs in 2027, compared to 74,000 projected in the spring. <\/p>\n Long-term, it has a rosier projection for 2028 \u2013 83,000 new jobs compared to a spring projection of 75,000. <\/p>\n Ontario\u2019s overall debt stands at $460.8 billion for 2025-26 and is expected to climb to $487 billion in 2026-27, reaching $501 billion in 2027-28<\/p>\n Opposition parties say government has \u2018thrown in towel\u2019 on housing, environment<\/p>\n Opposition parties at Queen\u2019s Park slammed the update Thursday, saying it does little to help workers and families. <\/p>\n Pointing to the dismal housing starts, Ontario NDP Leader Marit Stiles said, \u201cIt looks like the government has thrown in the towel on building housing in the province of Ontario.\u201d<\/p>\n Speaking with reporters, Bethlenfalvy acknowledged that Ontario\u2019s original target of building a minimum of 1.5 million new homes by 2031<\/a> is now considered a \u201csoft target.\u201d<\/p>\n The government had previously insisted that it would maintain the target, despite building far fewer homes annually than would be needed to meet it. The fall update omits the target altogether. <\/p>\n \u201cNot only does it mean that we\u2019re not building homes, any homes, let alone affordable homes that people can truly afford in the province of Ontario, but it also means that we have people who are home construction workers that can\u2019t find work at a time when we know there is a housing crisis,\u201d Stiles said. \u201cWe desperately need homes.\u201d<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/11\/P2IRWM66URHADAPNRPX5YORNIQ.JPG\")
Doug Ford Ontario Premier Doug Ford and Finance Minister Peter Bethlenfalvy arrive at the legislature for the tabling of the 2025 Ontario Economic Outlook and Fiscal Review at Queen\u2019s Park, in Toronto, Nov. 6, 2025.
THE CANADIAN PRESS\/Eduardo Lima <\/p>\n