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Federal budget lacks 'sense of urgency,' Ontario finance minister says

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  Published in Business and Finance on Wednesday, November 5th 2025 at 12:27 GMT by Toronto Star

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Ontario Finance Minister Criticizes Federal Budget for “Lack of Urgency”

Ontario’s finance minister, Eric Hoskins, opened a sharp critique of Canada’s federal budget in a statement released late Wednesday, arguing that the document fails to provide a timely response to the economic challenges facing the country. “The federal budget is missing the urgency that Canadians need to address,” Hoskins said, a phrase that has since become the rallying cry for a growing chorus of provincial leaders demanding faster action on inflation, housing costs, and climate change.

A Provincial Lens on a National Agenda

Hoskins began his commentary by situating the federal budget within the broader economic context. He pointed out that the Canadian economy is experiencing a double‑drag: a persistent rise in inflation rates and a slowdown in growth. “While the federal government has framed this as a transitional phase, the reality for Ontarians is a steady rise in the cost of living and a tightening job market,” he said. “We need a plan that delivers tangible relief, not a vague long‑term vision.”

The federal budget, presented by Chrystia Freeland in the fall, allocates approximately $200 billion to the federal deficit and outlines a 20‑year plan for public infrastructure. Freeland’s document promises investments in the national “Infrastructure Investment Plan,” targeting $30 billion in the first year for roads, bridges, and transit, alongside a $70 billion spend on health care and $40 billion on climate initiatives. Despite these figures, Hoskins argued that the numbers do not translate into immediate relief for provinces grappling with fiscal shortfalls and a housing crisis that has pushed median home prices past the $1.5 million mark.

Highlighting the Shortcomings

Hoskins cited several specific areas where he believes the federal budget falls short:

1. Housing – The federal government has earmarked only $5 billion for affordable housing, a figure he described as “minimalistic.” Ontario, with its own $25 billion deficit in the housing sector, is looking for a more aggressive federal response.
2. Climate Action – While the budget includes a $40 billion climate package, Hoskins pointed out that it focuses mainly on renewable energy projects, neglecting the immediate needs of communities affected by climate‑related disasters.
3. Public Sector Funding – Ontario’s health and education ministries are under pressure to deliver services with fewer resources. Hoskins noted that the federal budget’s modest increases in health care funding will likely be insufficient for the province’s needs.
4. Inflation Measures – With the consumer price index rising at an annualized rate of 4.6 percent, the finance minister argued that the federal government’s policies, such as the inflation‑controlled commodity tax, are “too slow to be effective.”

Reaction from Federal Officials

Chrystia Freeland, in a separate press release, defended the budget as a “balanced approach” that prioritizes infrastructure while managing the federal deficit. She said, “The government is investing in critical sectors that will lay the groundwork for long‑term growth.” Freeland’s statement, available on the federal Finance Department’s website, also highlighted the inclusion of a $10 billion stimulus package aimed at supporting small businesses and boosting employment.

Hoskins, however, responded to Freeland’s statements by suggesting that the federal government must “raise the tempo” of its initiatives. He urged the federal finance ministry to allocate an additional $15 billion for the housing sector and to create a dedicated “Ontario‑specific” infrastructure fund that could expedite projects such as the extension of Highway 416 and the modernization of the Ontario Line.

Broader Provincial Response

The Ontario finance minister’s remarks have echoed across other provincial governments. Manitoba’s Premier Brian Pallister echoed similar concerns, noting that the federal budget’s short‑term focus on “infrastructure” does not address the immediate fiscal pressures in the northern regions. Quebec’s Finance Minister, Daniel Turp, highlighted the need for more direct funding for health care and education, particularly in rural areas.

The Liberal opposition has called the budget a “blunt instrument,” while the Conservative opposition has urged the federal government to adopt a more “pro‑business” stance. The Progressive Conservative party in Ontario, led by Premier Trenton Brown, has already announced an emergency meeting with federal officials to negotiate an increased share of the federal deficit.

What This Means for Ontarians

The debate over the federal budget’s urgency underscores a larger tension in Canadian fiscal policy: the need to balance long‑term infrastructure investments with short‑term fiscal relief. Ontario’s population of over 14 million faces rising housing costs, higher transportation expenses, and a health care system under pressure. According to a recent report from the Ontario Treasury Board, the province’s net debt is projected to exceed $120 billion by 2026, a figure that many analysts believe will strain future budgets if federal support does not increase.

In the wake of the federal budget announcement, Hoskins has called for a “collaborative approach” that includes provincial governments, municipalities, and the federal government in setting priorities that reflect Canada’s economic realities. He urged that the federal budget be “realigned to address the pressing needs of Canadians in a timely and decisive manner.”

Looking Ahead

The federal budget will remain a focal point of political discussion in the coming months. As Ontario’s finance minister continues to pressure for more urgent federal action, other provinces are poised to either join the call or seek alternative solutions, such as increased provincial borrowing or partnerships with private investors.

For now, the conversation between federal and provincial leaders will likely shape the trajectory of Canada’s fiscal policy for years to come, with Ontario’s finance minister’s demand for “urgency” at the heart of a national debate about the country’s economic priorities.