Ontario Tables 2025 Budget with New Infrastructure Spending and Support Programs

Ontario Minister of Finance Peter Bethlenfalvy released the 2025 provincial budget on May 15. According to Ministry of Finance documents, the budget outlines funding for infrastructure projects, health care, job training, and business support measures in response to economic uncertainty and U.S. tariffs.

The budget sets out how provincial resources will be allocated for the coming year. The budget contains new and ongoing programs that may impact services, infrastructure, and costs for Ontario residents and businesses.

According to the Ministry, $500 million is allocated to create a Critical Minerals Processing Fund, aimed at attracting mineral processing investment in the province. The Indigenous Opportunities Financing Program’s loan guarantees are set to triple to $3 billion, with expanded eligibility for projects in energy, pipelines, mining, and resource development. The government will provide $70 million over four years to the Indigenous Participation Fund, supporting Indigenous involvement in regulatory processes for mining projects, and $10 million over three years for scholarships for First Nations postsecondary students in resource development programs.

The budget proposes a temporary increase in the Ontario Made Manufacturing Investment Tax Credit for Canadian-controlled private corporations, raising the rate from 10 percent to 15 percent. It also temporarily extends a 15 percent non-refundable credit to public corporations. The Ministry estimates these changes would result in $1.3 billion in additional support over three years.

The Protecting Ontario Account will be established with up to $5 billion to assist businesses experiencing tariff-related disruptions. An additional $1 billion over three years will be added to the Skills Development Fund for capital and training programs for skilled workers, bringing the fund’s total to $2.5 billion.

The budget proposes making provincial gasoline and fuel tax cuts permanent. The Ministry estimates this would save households an average of $115 per year. Permanent removal of tolls from Highway 407 East is also planned, with an estimated annual savings of $7,200 for daily commuters.

Over the next ten years, Ontario’s capital plan includes more than $200 billion in planned investments. These include nearly $30 billion for highway expansion and rehabilitation, about $61 billion for public transit, approximately $56 billion for health infrastructure, and over $30 billion for building schools and child care spaces.

The Ministry projects a provincial deficit of $6.0 billion for 2024–25, which is $3.8 billion lower than the previous outlook. Deficits of $14.6 billion in 2025–26 and $7.8 billion in 2026–27 are forecast, with a projected surplus of $0.2 billion in 2027–28. Real GDP in Ontario increased by 1.5 percent in 2024 and is projected to rise by 0.8 percent in 2025. The net debt-to-GDP ratio is projected to be 37.9 percent in 2025–26.

All figures and projections are from official Ontario Ministry of Finance budget documents for 2025.