A Fireside Chat with the Hon. Peter Bethlenfalvy, Ontario’s Minister of Finance
June 6, 2025
Ontario is at a pivotal moment, with the threat of tariffs having a direct impact on critical sectors of the provincial economy. It was against this backdrop that the Ford government, on May 15th, released its 2025 budget: A Plan to Protect Ontario. The budget outlined the government’s fiscal and economic plans for the years ahead including support measures for businesses and workers impacted by volatile U.S. trade policy.
On May 22nd, CPA Ontario welcomed the Hon. Peter Bethlenfalvy, Ontario’s Minister of Finance and Vassy Kapelos, Chief Political Correspondent for CTV News to our offices for a fireside chat about the budget, interprovincial trade, and the long-term prospects for the province’s economy and fiscal position in an unpredictable economic environment.
U.S. Tariff Response
Minister Bethlenfalvy described the 2025 budget as a plan to “meet the moment” as the Ontario economy grapples with U.S. tariffs and general uncertainty. He noted his government’s focus and priority is to support businesses and workers, touting immediate measures such as $9 billion in deferred taxes, $2 billion in WSIB rebates, and $1 billion towards the Skills Development Fund.
Minister Bethlenfalvy also discussed the Protecting Ontario Account, a $5 billion liquidity backstop available to businesses impacted by tariffs.
However, even as the government looks to support those who are affected by tariffs, the Minister noted that the changing relationship with the U.S. presents an opportunity for Canada to address long-standing economic issues like interprovincial trade barriers.
“The status quo is no longer an option. I think these tariffs have been a wake-up call for our economy and so we have this opportunity to not just talk, but to get things done,” he said. “I think that’s good for Ontario but I think that’s good for Canada too.”
Some estimates suggest that the removal of interprovincial trade barriers could grow the Canadian economy by up to $200 billion annually.
The Future of Ontario’s Economy
When it comes to key issues like housing, gridlock, construction, energy, and critical minerals, Ontario needs to think about how it is laying the foundation for its long-term economic success. According to Minister Bethlenfalvy, the province has the resources, talent, and mindset required to move forward and build a more prosperous economy.
He reinforced the importance of moving quickly on key projects and infrastructure, including critical mineral projects in the Ring of Fire, citing the Ford government’s controversial Bill 5 as an example.
“We take 15 years to permit a mine and get a shovel on the ground. You look at the OECD and they put us in the bottom quintile on a lot of measures in terms of permitting and regulation,” said Minister Bethlenfalvy. “So, we’ve put legislation in place. One project, one process.”
As Canada's relationship with the U.S. continues to evolve, so will our economy. When asked about what the future holds, the Minster noted electric vehicles, battery technology, nuclear power and the critical mineral supply chain as some of Ontario’s major economic advantages.
“We have the talent, we have the Indigenous partners, we have a mindset to do it reliably and ethically and responsibly,” he said. “So, this is our opportunity to really work together to not just dig up critical minerals but process them here as well.”
Ontario’s Deficit and Spending
When asked about the state of the province’s books, Minister Bethlenfalvy said that the projected $14.6 billion deficit this year, when weighed against a $1.2 trillion economy and factoring in the impact of the U.S. tariffs, is understandable.
“If government is not there during a financial crisis or a tariff trade war, what is government there to do?” he noted.
“The markets look at something called the debt to GDP, how much debt against your economy, our numbers have actually come down,” he continued. “And if you think about Ontario in the last three years, our population has grown by a net 1.3 million people. They have to go to school. They have a claim on health services and social services. So, we’ve had to adjust our footprint to accommodate.”
The Minister reinforced that he is confident the government will be able to balance the budget in their current mandate.
“We've got a path to balance, and we're committed to a path to balance…. It's just extended by one year.”
To learn more about the 2025 Ontario budget, visit 2025 Ontario Budget: Highlights & Takeaways.