Ontario’s net debt could top $501B by 2027, sparking concern over government spending and the long-term impact on taxpayers and public services.
Ontario on Track for Historic $501 Billion Debt by 2027
Ontario is projected to surpass $501.7 billion in net debt by 2027, according to its newly released 2025-26 fiscal plan. This would mark a record-breaking milestone, sparking renewed scrutiny of the province’s financial direction under Premier Doug Ford’s leadership.
$150 Billion Added Since 2018: Critics Raise the Alarm
Since the Progressive Conservatives assumed office in 2018, Ontario’s net debt has increased by nearly $150 billion. Critics argue the government’s fiscal path contradicts its previous pledges of restraint.
Nicolas Gagnon from the Canadian Taxpayers Federation didn’t mince words:
“So much for fiscal prudence. Just this year, the debt costs every Ontario taxpayer around $1,000.”
Interest Payments Outpacing Public Investment?
A growing portion of the budget is now dedicated to debt servicing. Between 2025 and 2028, the province will spend $51 billion on interest alone—making it the fourth-largest expenditure in the provincial budget.
Liberal Finance Critic Stephanie Bowman warned that this mounting interest burden is “squeezing Ontario’s ability to fund basic services”, including healthcare and education.
Ford Government Defends Big Spending Strategy
Despite mounting debt and criticism, Premier Doug Ford insists that slashing the budget is not an option during economically uncertain times.
“I don’t like debt,” Ford told reporters. “But I believe in reinvesting into our infrastructure, health care, and schools rather than cutting programs.”
This approach has drawn comparisons to past criticisms by Ford’s own party, which once lambasted the Liberals for growing debt to $350 billion in 2017.
A Change in Tune: Past Criticism vs. Present Reality
Back in 2017, then-finance critic Vic Fedeli warned that Ontario could face a half-trillion-dollar debt crisis due to Liberal overspending. Fast forward to today, and Fedeli—now a senior cabinet minister—is defending the same milestone under a different government.
This shift has raised eyebrows, with critics accusing the Ford government of moving the goalposts on fiscal accountability.
Big Projects, Big Questions
One major point of contention is Ford’s proposed $50 billion tunnel project under Highway 401, which the NDP says is an unnecessary expense.
NDP Finance Critic Jessica Bell argued, “I haven’t met a single person who supports this tunnel—except Doug Ford.” The opposition is calling for redirection of funds toward critical needs such as housing, hospitals, and public schools.
What’s the Path Forward?
In response to the criticism, the government points to Ontario’s improved credit ratings and relatively low debt-to-GDP ratio compared to other provinces.
Still, Premier Ford acknowledges the daunting reality “Is half a trillion a huge amount? It is,” he admitted.
But his plan remains focused on driving revenue through infrastructure and economic growth rather than austerity.
As Ontario edges closer to a historic debt threshold, the debate continues: Is the province investing in the future—or borrowing from it? With taxpayers footing a growing bill, the pressure is on the Ford government to balance economic ambition with fiscal responsibility.
