Ontario’s Debt Could Pass $500 Billion by 2027, Raising Concerns
Ontario taxpayers may face more than $500 billion in provincial debt by 2027, according to the latest budget from Premier Doug Ford’s government. That would be the highest debt level in the province’s history, and it’s raising questions about how Ontario plans to deal with such a big financial problem.
Finance Minister Peter Bethlenfalvy shared the government’s latest financial plan, which shows the debt could hit $501.7 billion in just two years. If that happens, it means the Ford government will have added nearly $150 billion in debt since taking office in 2018.
Critics say this goes against the government’s promise to manage money carefully.
“So much for being responsible with money,” said Nicolas Gagnon from the Canadian Taxpayers Federation. He said the rising debt will be a burden for future taxpayers. “This year alone, each Ontario taxpayer is paying about $1,000 just in interest on the debt,” he added.
Interest payments are becoming a big problem. Between 2025 and 2028, the province will spend $51 billion just to pay interest. Critics warn that this will take money away from other important services like health care and education.
“We’re now spending more on interest than almost anything else,” said Liberal Finance Critic Stephanie Bowman. “That number will only go up if the government keeps spending more than it earns.”
Despite this, Premier Ford doesn’t seem too worried. At Queen’s Park, he said he won’t cut spending, especially during uncertain economic times.
“I don’t like debt,” Ford said. “But I also won’t slash budgets. I believe in investing in infrastructure, health care, hospitals, and schools.”
This has led some to point out that Ford’s party is doing exactly what they criticized past governments for. Back in 2017, when former Liberal Premier Kathleen Wynne raised the debt to nearly $350 billion, Ford’s team called it reckless.
At the time, Vic Fedeli — now Ford’s minister of economic development — warned that the province could one day face a $500 billion debt if spending wasn’t controlled.
Today, that prediction is coming true under the Progressive Conservative government. Still, Ford says Ontario is in better shape than other provinces and pointed to good credit ratings and a low debt-to-GDP ratio.
“We’re doing okay compared to others, but we always have to be careful,” Ford said.
Some critics say it’s time to cut unnecessary projects and start saving. The NDP, for example, supports spending on hospitals, schools, and housing, but wants Ford to cancel one of his expensive projects — a $50 billion tunnel under Highway 401.
“I haven’t met anyone who thinks that tunnel is a good idea, except for Doug Ford,” said NDP finance critic Jessica Bell.
Ford responded by saying his plan is to grow the economy, invest in infrastructure, and increase revenue to help pay off the debt over time.
When asked if $500 billion was a “huge” number, Ford admitted: “It is.”
