Ontario’s debt is nearing half a trillion dollars. Failing to curb spending only deepens the burden taxpayers already carry

OTTAWA, Ont.: The Canadian Taxpayers Federation outlined a path for the Ford government to end government borrowing while providing significant tax cuts in a pre-budget report released today.

“Ontario’s next budget is a chance for government to turn the page after years of overspending and big borrowing,” said Noah Jarvis, CTF Ontario Director. “The next budget should stop the debt dive while cutting taxes for families and workers.”

The province’s debt has hit $459 billion this year. That means each Ontarian’s share of the provincial debt is about $28,208. Provincial debt interest charges will cost taxpayers about $16.2 billion this year. The Financial Accountability Office estimates that debt interest charges will rise by 6.1 per cent annually.

The sharp growth in Ontario’s debt is being driven by a rapid rise in government spending. Government spending has grown 27.6 per cent over the past five years, amounting to $50.8 billion.

The CTF’s 2026 pre-budget proposal outlines costed proposals the government can cut to save taxpayers over $27 billion. These include:

  • Ending all corporate welfare
  • Scrapping the Building Ontario Fund
  • Reducing overall government spending by 15 per cent, excluding health care and education

These cuts would allow the Ford government to deliver tax cuts for Ontarians that would return over $19 billion to Ontario taxpayers. These include:

  • A two-percentage-point cut to the provincial portion of the HST
  • A three-percentage-point cut to the corporate tax rate
  • Ending tax-on-tax charges on gasoline

If Finance Minister Peter Bethlenfalvy adopts the CTF’s recommendations, the government would replace its projected $7.8 billion deficit with a modest surplus while cutting taxes for families.

“Taxpayers can’t afford more debt and more interest charges on that debt,” Jarvis said. “Ford needs to put down the taxpayer credit card, pick up a pair of scissors and cut government spending.”

You can read the CTF’s Ontario pre-budget submission by clicking the link here.

📢 For press release submissions and distributions, click here.

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