A Plan to Protect Ontario

On Thursday, October 29, 2026, Minister of Finance Peter Bethlenfalvy released the 2026 Ontario Economic and Fiscal Review: A Plan to Protect Ontario, which furthers the government’s plan to protect Ontario workers, businesses and communities while building the most competitive, resilient and self-reliant economy in the G7. The government is investing to fortify key tariff-impacted industries while improving Ontario’s competitiveness in order to attract good-paying jobs in strategic sectors including advanced manufacturing, critical minerals mining and refining, artificial intelligence, defence and more.

Ontario’s workers, families and businesses continue to face significant challenges from ongoing U.S. trade actions, geopolitical instability and broader global economic uncertainty. Despite these challenges, Ontario’s fiscal plan maintains the flexibility to respond to changing conditions, while continuing to invest in the priorities that matter most to families and communities. Given these external factors, Ontario’s fiscal outlook, presented in the 2026 Ontario Economic and Fiscal Review, projects a path to a balanced budget in 2029-30.

“Ontario continues to face significant economic uncertainty driven by U.S. tariffs on Canada, but our government has a plan to protect workers, businesses and communities while building a stronger economy for the future,” said Minister Bethlenfalvy. “Through responsible fiscal stewardship we are fortifying key provincial industries as we attract the jobs of the future, protecting key public services and ensuring our province remains competitive in an increasingly uncertain global economy.”

Through responsible fiscal management and targeted investments, Ontario is strengthening domestic economic opportunities, reducing internal trade barriers, supporting workers and job creators, investing in critical infrastructure through our $210 billion capital plan, and maintaining the flexibility needed to respond to evolving economic challenges. The government’s fiscal plan maintains a sustainable path forward while supporting the long-term growth and competitiveness of Ontario’s economy.

Highlights of the 2026 Fall Economic Statement include:

• Strengthening Ontario’s competitiveness through the Ontario Competitiveness Tax Cut, part of Ontario’s multi-year Tax Action Plan. This measure would provide $8 billion in provincial tax relief, which is the provincial component of the federally announced Productivity Mega Deduction, which would lower the cost of business investment by permanently allowing businesses to immediately write off 100 per cent of the value of a wide range of assets. Following the passage of federal legislation, the measure is estimated to attract at least $11 billion in additional capital investment to the province, creating 30,000 new jobs and adding $6 billion to gross domestic product (GDP). Combined with the accelerated write off measures included in the 2026 Budget, this would bring Ontario’s total tax relief in support of business investment to more than $12 billion over five years.
• Continuing to fortify Ontario’s industrial base and attract jobs and investment through the new $8.7 billion Canada-Ontario action plan to strengthen the province’s steel, automotive and critical minerals sectors. The plan will help protect workers and businesses affected by U.S. tariffs, support the modernization of key industries, unlock critical mineral development and prepare Ontario to compete in the industries of the future, including advanced manufacturing, defence, energy, electric vehicles and strategic infrastructure. By strengthening domestic supply chains, expanding market opportunities and supporting major investments, Ontario is building a more competitive, resilient and self-reliant economy.
• Cutting red tape to build the most competitive economy in the G7 by reducing regulatory burden and accelerating approvals for businesses. This includes a commitment to review every one of the province’s 375 business-facing permits over three years, with the goal of eliminating, streamlining or transforming 35-50 per cent by the end of 2028. In the first year, the government has already reviewed 51 per cent of the 375 business-facing permits, of which it has eliminated, streamlined or transformed 65 per cent of permits reviewed. Ontario is also eliminating nearly 220,000 days’ worth of permit processing times, accelerating the delivery of critical infrastructure projects and supporting labour mobility.
• Taking swift action by announcing nearly $30 billion in tariff relief and supports for workers and businesses since April 2025, including measures to build long-term economic resiliency and prosperity. This includes a six-month interest and penalty-free deferral period from April 1 to October 1, 2025, for select provincially administered taxes, making up to $9 billion in liquidity relief available to approximately 80,000 businesses to help ease financial pressures. The government has also expanded eligibility for the Ontario Together Trade Fund (OTTF) and the Protect Ontario Financing Program (POFP) to provide businesses with the critical support to keep their doors open, keep workers on the job and reshore their supply chains.
• Enhancing support for research and development by restoring capital expenditures as eligible expenditures under the Ontario Research and Development Tax Credit and the Ontario Innovation Tax Credit, in parallel with recent federal enhancements. This is estimated to provide more than $50 million over the next three years in additional tax support, helping to lower the cost of R&D for about 700 businesses.
• Respecting taxpayer dollars through responsible fiscal management and ongoing efforts to improve government efficiency, strengthen oversight and reduce administrative burden. The government measures include reviewing priority programs and services to identify efficiencies, reduce error, waste, abuse and fraud, and to improve investment outcomes and ensure resources are focused on delivering high-quality public services for Ontario families and businesses.
• Supporting Ontario’s film and television sector by proposing to update eligibility for the Ontario Computer Animation and Special Effects (OCASE) Tax Credit. To help streamline support and simplify access to the 18 per cent refundable corporate income tax credit, the government is proposing to transition eligibility for this credit to film and television producers only. This proposed approach would more closely align with eligibility in other Canadian jurisdictions and continue to support special effects and animation activity in Ontario.

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