By 2027, the Ontario taxpayers will have a debt exceeding half a trillion dollars, as per the latest provincial budget from the Ford government, leading to concerns about managing this growing financial burden.
The Finance Minister Peter Bethlenfalvy’s fiscal plan for 2025-26 revealed the province’s projections, indicating that Ontario’s net debt is anticipated to reach $501.7 billion in just a couple of years.
This unprecedented sum would mean an increase of almost $150 billion in debt since the government took office in 2018, drawing criticism from fiscal conservatives and the opposition.
According to Nicolas Gagnon from the Canadian Taxpayers Federation, the Ford government’s decisions have contributed to the “burden” that future taxpayers will have to bear.
Gagnon also noted that this year alone, each Ontario taxpayer is facing costs of about $1,000 just for the debt itself.
Critics highlight that the province’s escalating interest payments on the debt, totaling $51 billion from 2025 to 2028, will constrain the government’s capacity to fund essential services.
“A substantial portion of the budget is allocated to interest expenses, ranking as the fourth-largest expenditure, and this situation will only worsen as the government continues to outspend its revenues,” remarked Liberal Finance Critic Stephanie Bowman.
During a brief interview at Queen’s Park, Premier Doug Ford seemed unperturbed, expressing reluctance to reduce the provincial budget, especially amid economic uncertainties.
“I am not in favor of accumulating debt,” Ford told Global News. “When it comes to budgeting, we can either make cuts, which I am not inclined to do, or invest in our infrastructure, healthcare, hospitals, and schools.”
Contrary to their criticism of the former Liberal government’s debt accrual, the Progressive Conservative government is now justifying their spending by highlighting the province’s improved credit ratings, low net debt compared to GDP, and comparisons with other regions.
“Compared to some provinces, our financial standing is still strong, but we must always monitor our deficit and debt levels,” Ford explained to Global News.
Critics are urging the government to manage the provincial debt more effectively by reducing unnecessary projects and saving resources.
While the NDP advocates for continued investments in hospitals, schools, and housing to stimulate job growth and maintain services, they believe the premier’s favored project should face budget cuts.
“I have yet to encounter anyone who supports the idea of constructing a $50 billion tunnel under the 401, except Doug Ford,” remarked NDP finance critic Jessica Bell.
Ford asserts that the government’s plan to reduce the provincial debt will concentrate on investments, infrastructure, and revenue growth.
“We need to generate more revenue, as we have done previously, and use a portion of it to gradually reduce the debt,” Ford told Global News.
When asked about the significance of half a trillion dollars, Ford acknowledged, “It is a substantial amount.”
