Chapter 03 · Economy

An Opportunity Economy

Restore Ontario's place as Canada's growth engine: simpler taxes, faster permits, fewer subsidies, and a real comparative advantage in the industries that will drive the next economy.

Net savings · $12.4B–$16.9B3 goals10 commitments
At a glance

The goals

Goal 1

Spend Smarter and Tax Better

Get more out of every public dollar, move the tax burden off work and investment, and fix a procurement system that overpays and waits.

Goal 2

Make Ontario The Place To Build

Clear away the delay, duplication, and cost that drive off the people who want to start a business, invest, and hire here.

Goal 3

Competing and Winning Globally

Concentrate our firepower on the industries where Ontario can genuinely lead, instead of subsidizing whoever lobbies hardest.

The case

Why this, why now

Twenty years ago Ontario pulled the rest of the country forward. We made things, sold them to the world, and set the pace for Canada. Today our income per person has barely moved while other places kept climbing, and the province that used to lead now weighs the country down. You feel it in wages that fall behind the cost of living, and in young talent that leaves for somewhere hungrier.

This is not a story about Ontarians running short on ability. It is a story about a province that made itself a hard place to build in. We taxed work and investment in the wrong places, buried builders in process, and handed public money to whoever lobbied hardest instead of backing the industries where we can genuinely win.

This section is about getting that edge back. Spend the public's money like it belongs to the public. Tax in ways that reward effort and investment rather than punishing them. Let someone open a business or break ground on a factory in months instead of years. A growing economy is not a vanity project. It is what pays for every other promise in this book.

The plan

What we'll do

Spend Smarter and Tax Better3 commitments · +$9.5B to +$13.0B

Review every program for whether it works, simplify the tax code, and modernize procurement. Stop paying for things that don't deliver.

Launch a program spending review targeting $8B+ in savings. Identify up to 5% of the existing budget for deficit reduction and reinvestment in key priorities. Cut low-performing programs and redirect to where Ontarians actually see results.
Establish a tax reform commission. Simplify Ontario's tax code, reduce carve-outs, and improve competitiveness, with a goal of lowering the combined top marginal income tax rate below 50% while shifting taxes toward growth-friendly forms.
Modernize public procurement. Buy faster, cheaper, and from more competitive vendors. Standardize repeat purchases, publish vendor performance, and stop rewarding incumbents.
Make Ontario The Place To Build3 commitments · +$2.9B to +$3.9B

Cut the red tape that protects incumbents and slows new investment. Make it possible to build a factory, hire a worker, or launch a product in months, not years.

Set up a permitting, regulatory, and competition reform commission. Reduce rules that protect incumbents and slow growth. Make this province easier to build, invest, hire, and expand in.
Create rapid permitting zones for industrial development. Make land, servicing, energy, and approvals cleared in advance so firms can build in months, not years.
Substantially reduce business subsidies and refocus future ones. Target production, capital formation, exports, domestic intellectual property development, and long-term benefit. End sweetheart deals and industry favours that don't build lasting capacity.
Competing and Winning Globally4 commitments · $0 to $0

Concentrate industrial policy on capital formation in sectors where Ontario can lead the world and focus on domestic businesses with serious potential export capacity.

Concentrate economic development on industries where Ontario can lead globally. Focus on strengths like robotics, sensors, software, defence manufacturing, regenerative medicine, quantum, automotive innovation, nuclear, critical minerals, and advanced manufacturing, and give them the energy, land, and rapid permitting to build here. Back firms based in the province, and be a jurisdiction willing to host first-of-a-kind projects.
Build a high-value export and commercialization strategy. Turn Ontario research and engineering into world-class goods and services. Keep the IP, scale the companies, grow the talent here.
Grow Ontario's automotive cluster as it transforms. Lead in electric, autonomous, and software-driven mobility, plus general robotics. Keep the Golden Horseshoe and Southwestern Ontario among North America's strongest auto and advanced manufacturing regions.
Make sure the gains from new technology are shared, not hoarded. Work with the federal government on fair access to AI and the training to use it, so workers and small businesses gain too, not just large firms. Use it to simplify the government processes people deal with, and protect their data, privacy, and encryption rights.
What it costs

The fiscal picture

GoalLowerUpper
Total — An Opportunity Economy+$12.4B+$16.9B
Spend Smarter and Tax Better+$9.5B+$13.0B
Make Ontario The Place To Build+$2.9B+$3.9B
Competing and Winning Globally$0$0

Net budgetary impact over the Ontario Budget 2026 baseline. Negative numbers represent net new provincial spending; positive numbers represent net savings or revenue. Reform Dividends are shown on a separate page.

Financial assumptions — how every number was derived Line-by-line derivations for each estimate

Detail on how each cost or savings estimate was derived. All figures represent net budgetary impact over the Ontario Budget 2026 baseline.

Spend Smarter and Tax Better · +$9.5B to +$13.0B
IdeaLowerUpperHow it was estimated
Launch a program spending review targeting $8B+ in savings.+$8.0B+$11.0BOntario spends $244B/yr. Cutting 3-5% of low-performing programs frees up $8-11B/yr. These are targeted cuts to programs that aren't delivering, not across-the-board reductions; subsidy savings below are counted separately.
Establish a tax reform commission.$0$0Funded within existing budgets. Any tax changes it recommends would be costed on their own.
Modernize public procurement.+$1.5B+$2.0BOntario buys $30-40B/yr in goods and services. The UK and US cut similar costs about 5% through centralized purchasing; a 4-5% saving here is $1.5-2B/yr.
Make Ontario The Place To Build · +$2.9B to +$3.9B
IdeaLowerUpperHow it was estimated
Set up a permitting, regulatory, and competition reform commission.($10M)($25M)Runs about $10-25M/yr, in line with bodies like Australia's Productivity Commission.
Create rapid permitting zones for industrial development.($50M)($100M)The $50-100M covers permitting teams, pre-cleared sites, and servicing to make land build-ready, modelled on Quebec's industrial zones and US shovel-ready sites.
Substantially reduce business subsidies and refocus future ones.+$3.0B+$4.0BOntario gives out $8-12B/yr in business subsidies and tax credits. Cutting that by a quarter to a half saves $3-4B/yr, separate from the program review above.
Competing and Winning Globally · $0 to $0
IdeaLowerUpperHow it was estimated
Concentrate economic development on industries where Ontario can lead globally.$0$0Refocuses money the province already spends through Invest Ontario and existing sector funds; no new programs, no change to spending.
Build a high-value export and commercialization strategy.$0$0Covered by existing programs (Ontario Centre of Innovation, federal commercialization funds). Reorganizes that spending rather than adding to it.
Grow Ontario's automotive cluster as it transforms.$0$0Ontario has already committed about $2-4B to EV battery plants (Volkswagen, Stellantis, Honda). This coordinates those existing commitments rather than adding new ones, so no change to spending.
Make sure the gains from new technology are shared, not hoarded.$0$0Mostly federal and advocacy work. Provincial training and digital costs are covered within existing budgets and expected to save more than they cost over time.
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