Ontario finance chief warns deficits will persist amid US trade tensions

Ontario’s finance minister, Peter Bethlenfalvy, signaled that the province will continue to run budget deficits while it adapts to a prolonged trade war with the United States. Recent findings from the province’s Financial Accountability Office indicate billions more are required simply to sustain existing service levels, and forecasts suggest more than $35 billion in deficits between 2027 and 2035. Bethlenfalvy described the deficits as inevitable given today’s “changed world” and the evolving US-Canada relationship, while also warning that federal funding cuts could force service reductions.

Green Party leader Mike Schreiner criticized the approach, saying higher interest payments are unsustainable and divert money from health, education, affordable housing and climate preparedness. He also accused the government of relying too heavily on federal transfers and of using tax cuts that mainly benefit wealthier citizens. The Ford administration is expected to present a mini-budget in November.