Rae says Provincial Budget will Protect Ontario and Support Rural Communities

May 16, 2025

[Queen’s Park]— Yesterday, Ontario’s Minister of Finance, the Honourable Peter Bethlenfalvy introduced the provincial budget for the 2025-26 fiscal year.

“Our provincial government has tabled a budget that will protect Ontario, and ensure we build a stronger province and country,” said Matthew Rae, Member of Provincial Parliament for Perth-Wellington. “Budget 2025 outlines vital investments in our rural communities, such as housing enabling infrastructure, primary care expansion, and support for our small businesses. We will be there to support families, workers, and communities during these challenging economic times.”

“Our government is delivering on our mandate to protect Ontario and help workers and businesses weather the storm, while creating the long-term foundations for a strong, resilient and competitive economy,” said Minister Bethlenfalvy. “We’re making the investments in workers, infrastructure and services that will protect Ontario, no matter what.”

The 2025 Budget furthers the government’s goal to transform Ontario into the most competitive place to invest, create jobs and do business in the G7, while investing more in health care, education and other critical services.

The budget also makes the Gas Tax cut permanent, saving Ontario families $115 per year annually.

“Our government is focused on making life more affordable and cutting red tape,” MPP Rae added. “In the face of economic uncertainty, I will continue to advocate for ways to improve affordability and make Ontario the most competitive place to do business. I will also continue to advocate for Perth-Wellington’s fair share of these new investments.”

Budget 2025 will:

  • Defer select provincially administered taxes for six months from April 1 to October 1, to help businesses weather the economic turmoil caused by the impact of U.S. tariffs.
  • Invest $50 million, over three years, to create an Ontario Together Fund. The fund will focus on expanding interprovincial trade by supporting investments in infrastructure, equipment and processes to enhance competitiveness in the face of U.S. tariffs.
  • Invest an additional $1 billion over the next three years in the Skills Development Fund Capital and Training Streams, bringing the total funding commitment to $2.5 billion.
  • Provide $20 million in 2025-26 to mobilize new training and support centres, formerly known as action centres, providing immediate transition supports for more laid-off workers, including those impacted by U.S. tariffs.
  • Inject an additional $400 million in the Municipal Housing Infrastructure Program and Housing-Enabling Water Systems Fund in the immediate term, to address high demand for these existing programs to help build the local infrastructure needed to make way for new homes.
  • Provide more than $235 million in 2025-26 to establish and expand up to 80 additional primary care teams across the province, connecting 300,000 more people to primary care this year.

Ontario’s 2024-25 deficit is projected to be $6 billion – $3.8 billion lower than the outlook published in the 2024 budget. The provincial government’s plan remains prudent and responsible and retains a path to balance the budget by 2027-28.

Budget 2025