After a year of political turmoil, sticky inflation and higher interest rates, Ontario’s Minister of Finance has tabled the Ontario PC’s second budget of their mandate, Building a Better Ontario.
After two deficits, the government is on track to post a surplus in 2026-27, two years later than forecast in the 2023 Budget.
With economic uncertainty facing the province, the Ford government has doubled down on its key priorities—an ambitious agenda to build critical infrastructure faster, attract large-scale investments that bring better jobs, and keep costs down for families and businesses.
These key priorities are reflected throughout Budget 2024, with investments focused on housing-enabling infrastructure, skills development training, and bolstering healthcare.
Here’s what you need to know about the 2024-25 Ontario Budget:
By the Numbers
- Total revenues: $205.69 billion, $7.4 billion lower than forecast in the 2023 Budget.
- Program Expenses: $214.49 billion, $3.69 billion higher than forecast in the 2023 Budget.
- Total Deficit: $9.8 billion in 2024-25, $10 billion higher than the outlook published in the 2023 Budget.
Key Investments
Building the Economy
Budget 2024 re-doubles the PC’s efforts to continue building the economy, with:
- an additional $100 million to attract large-scale investments and create investments through the Invest Ontario Fund,
- $15 million in the Critical Minerals Innovation Fund to spur research and development in the mining sector, and
- The launch of a new grant program to upscale the shipbuilding industry.
Building Critical Infrastructure
The government has recommitted to building the roads, highways, and infrastructure Ontario needs to keep up with growth. Budget 2024 re-commits to building roads and transit in growing cities like Windsor, Ottawa, Milton, Mississauga, and Pickering. The PCs also look to develop communities through a new $200 million investment in the Community Sport and Recreation Infrastructure Fund to build and expand sports and community facilities.
Building More Housing
Answering municipalities’ calls, the government is continuing its investments in housing-enabling infrastructure, launching the Municipal Housing Infrastructure program with a $1 billion budget.
The PCs are also topping up the Housing-Enabling Water Systems Fund, helping municipalities build the infrastructure needed to support the government’s goal of building 1.5 million homes before 2031.
Building the Workforce
The Ford Conservatives continue to invest in the skilled trades, with an additional $100 million in the Skills Development Fund training stream, $16.5 million more through the Skilled Trades Strategy to attract young people into the skilled trades, and $62.9 million to expand the Ontario Youth Apprenticeship Program.
Building Better Services
Amid a shortage of primary and hospital care, the PCs are investing in healthcare and social services to tackle pandemic-driven backlogs.
Budget 2024 invests another $965 million in healthcare this year while focusing on expanding home and community care with a $2 billion investment over the next 3 years.
On the education front, the government has thrown $23 billion over 10 years to build and expand schools and childcare spaces, including $1.4 billion this year to repair schools.
The Tories are also investing an additional $155 million to build and redevelop long-term care homes, as the province grapples with an aging population.
Opposition View
Don’t expect any support from Marit Stiles’ New Democrats or Bonnie Crombie’s Ontario Liberals.
While investments in healthcare, post-secondary education, and social services align with both parties’ pre-budget asks, the Opposition has already positioned them as insufficient and failing to keep pace with inflation. Similarly, both parties wanted more affordability measures for families struggling with higher costs, to which the PCs would respond with the extension of the gas tax cut that’s saved families over $2 billion since its inception.
What’s Next
The PCs hope these investments are enough to change the channel from the most contentious and politically damaging year its faced post-pandemic. Budget 2024 doubles down on the government’s goal of building and seeks to bolster their “get it done” mantra in the lead-up to the 2026 election.
While today’s budget sets out the government’s roadmap for spending over the next year, the legislation will still need to pass through the legislature, including scrutiny at committee, before the allocated funding flows.
Given the Ford government’s continued commitment to its key priorities, three questions remain: What happens to government dollars not allocated within the budget? How do my organization’s policy needs become prioritized? How does my organization get into the next budget cycle? McMillan Vantage is here to help your organization answer these questions, navigate Queen’s Park, and keep your issues at the top of the agenda. To find out more, contact us at info@mcmillanvantage.com
