Called “A Plan to Protect Ontario,” the 2026 budget has the same name as last year’s, but features more spending and a lot more red ink.The 231-page financial blueprint lays out plans for a record $226 billion in total program spending, and projects a deficit that’s expected to grow to $13.8 billion this year – up from the $7.8 billion initially projected in the 2025 budget.Ontario’s net debt is forecast to top more than $500 billion next year for the first time.“I prefer to have a smaller deficit,” said Ontario Finance Minister Peter Bethlenfalvy.“But we have to live in the world we’re in.” The Ontario NDP’s finance critic Jessica Bell says, “The Conservatives love to pretend they’re prudent fiscal managers but this budget is telling us something else.”The budget features a small business tax cut, and more funding for the Ontario Autism Program, hospitals, and home care. It sets aside billions for big capital projects but doesn’t break down how much things like the Highway 413 or the Highway 401 tunnel study will cost. There are no new affordability measures for Ontarians beyond previously announced measures like removing the HST tax on new homes, and extending the One Fare transit program.The document doesn’t specifically outline funding for Billy Bishop Toronto City Airport nor a new convention centre potentially to be built on an island as the premier has talked about in recent days. There are no personal tax hikes or cuts.Last year’s budget focused on containing and mitigating the impact of U.S. tariffs, but that doesn’t seem to have impacted the Ontario economy as much as feared. Bureaucrats said unemployment is coming in at a better-than-expected projection of 7.4 per cent in 2026-2027, and falling to 6.9 per cent next year.2026 Ontario Budget:Read the full documentGROWING RED INKOntario’s deficit is expected to balloon 77 per cent to a projected $13.8 billion this year, up from the projected $7.8 billion in the 2025 Ontario budget. It’s projected to fall to $6.1 billion in 2027-2028, before planning for a surplus of $600 million in 2028-2029, meaning the government has pushed its planned return to balance back a year. Ontario is one of the only provinces that lays out a path to balance.For the first time in Ontario history, the province’s net debt is forecast to cross the half-trillion-dollar mark with the government forecasting net debt of $514 billion next year.The unallocated reserve fund now stands at $1.5 billion.SMALL BIZ TAX CUTThe small business corporate income tax (CIT) rate is being cut by more than 30 per cent to 2.2 per cent from 3.2 per cent effective July 1, 2026. The government claims that over 375,000 Ontario small businesses would benefit from an additional $1.1 billion in CIT relief over the next three years as a result.The government also says it intends to allow businesses to accelerate the income tax deduction for the cost of depreciable assets.ONTARIO AUTISM PROGRAM FUNDING UPThe Ford government is hiking funding for the Ontario Autism Program by $186 million to nearly $1 billion annually, which the budget claims will enable more children and youth to access core clinical services.LCBO NOT MAKING AS MUCHLCBO revenues appear set to never recover from where they were before the Ford government opened up the alcohol market to allow corner stores to sell beer and wine. LCBO net revenue has fallen to $1.8 billion this year, down from $2.3 billion last year. The government is is blaming a confluence of factors, including people drinking less alcohol, the fact that American booze has been removed from LCBO store shelves, and that alcohol taxes have been cut.NEW INVESTMENT FUNDThe government is creating what it calls the “Protect Ontario Account Investment Fund,” in which the province will invest up to $4 billion to “attract investment from pension funds and other private capital.” Officials say the fund will help attract investment and help businesses upscale though details are sparse. It replaces the “Protect Ontario fund,” which was intended to dole out money directly to businesses affected by tariffs.HEALTH CAREFunding for the province’s hospitals totals $28.9 billion, up by $1 billion. There is $1.1 billion earmarked for home care.SPORTSThe budget lays out an additional $300 million over six years for the Community Sport and Recreation Infrastructure Fund, which is intended to upgrade or build new sport and recreation facilities across the province.HIGHWAYS, 401 TUNNELThe government has set aside $31 billion for highway projects (much of this was previously announced), but won’t break down specifically what’s being spent on the new Highway 413, Bradford Bypass, or on the feasibility study for the Highway 401 tunnel. The budget does state that testing for the purposed 401 tunnel will begin in the spring, focusing on things like soil and core samples.JOBSOntario’s unemployment rate now forecasted to hit 7.4 per cent this year, and 6.9 per cent next year.PREVIOUSLY ANNOUNCEDThe Ford government had already laid out a number of budget measures, including classroom supply spending cards for elementary school teachers, a one-year break on HST for those buying a new home, and a ban the reselling of event tickets for more than face value. Ontario’s One Fare Program, which enables free transfers between the TTC, GO Transit, Brampton Transit, Durham Region Transit, MiWay, and York Region Transit using a single payment method, is being extended by two more years. The government says this can save transit users up to $1,600 per year.