Doug Ford’s government is preparing to announce its 2025-26 budget this Thursday. This presentation marks an exciting time for the province as it navigates through economic obstacles and seeks to find different opportunities. The next budget is expected to include big infrastructure investment as well as stimulus policies to boost the economy.
Recently, in public statements, both Premier Doug Ford and Finance Minister Peter Bethlenfalvy have revealed what should be considered as the budget’s hallmarks. They framed the province’s promise about increasing longterm economic development. This will be accomplished through a dramatic expansion of the manufacturing investment tax credit. This new program is intended to stimulate private investment in the U.S. manufacturing base. It could hardly be better tailored to Ford’s hope that a deeply-rooted economic recovery will take hold.
Furthermore, the budget will tackle rising transportation costs by eliminating tolls on the eastern, provincially owned part of Highway 407. In turn, this decision will bring down commuting costs for residents and businesses, boosting local economies even more.
External factors have substantially shifted the landscape of this budget. Perhaps most prominently, the tariffs slapped on under Donald Trump’s presidency have been a key factor in this reversal. These tariffs have played a substantial role in Ford’s direction, causing changes to fiscal plan since the last full fiscal update. As you may recall, the last fall economic statement committed to a balanced budget by 2026-27. The terrain completely changed once Trump was elected and tariffs on a variety of materials went into effect.
Premier Ford has made clear through repeated proclamations that his new government’s first budget will prioritize massive new infrastructure investments. These investments are essential for maintaining a strong economy now and in the future. By focusing on infrastructure, the provincial government is trying to create jobs and stimulate economic activity province-wide.
In addition to this, the government seems hell-bent on making cuts that will have a painful effect on GDP in the immediate term. Together, the growing infrastructure spending and economic stimulus initiatives of today mark a response to domestic needs combined with political vulnerability from external stimulus and change.
