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Yesterday, Ontario Finance Minister Peter Bethlenfalvy introduced a record $244.2-billion budget with a projected deficit that has almost doubled to $13.8 billion since November, the largest shortfall since the height of the COVID-19 pandemic six years ago. Ontario’s budget deficit is far larger than anticipated due to the ongoing trade dispute with the U.S. and economic uncertainty abroad. 

Primary Care 

There were no surprises in the 2026 Budget, as the province’s 2026-27 primary care investments were announced last week in a multi-pronged announcement that included: 

• • increasing the overall funding for the Primary Care Action Plan from $2.1 billion to $3.4 billion between 2025 and 2029; 

• • selecting 124 successful Round 2 IPCT funding applicants; 

• • investing up to $300 million to support the creation and expansion of primary care teaching clinics; 

• • and advancing a new provincewide electronic medical record (EMR) system for primary care, the Primary Care Medical Record Program. 

Last week’s announcement also noted that the 2026 Budget will include an additional $325 million to further expand primary care. Combined with the already allocated $250 million to support 124 IPCT funding recipients, the Budget 2026 investment totals $604 million to support primary care teams in 2026-27.  

Yesterday’s Budget did not offer any details on how the funding will be allocated. However, several AFHTO members were acknowledged in the primary care section for expansion efforts (pages 123-124). 

Broader Healthcare Context 

Putting the Budget’s primary care investments into broader context, the overall healthcare investment is $101.2 billion in 2026-27 (up from $91.3 billion in 2025-26), which is over 41% of the Budget (page 184): 

• • Ministry of Health budget: $91.8 billion 

• • Ministry of Long-Term Care budget: $9.4 billion 

The health sector expense is projected to be $5.6 billion higher than anticipated in 2026-27 primarily to address pressures related to the delivery of healthcare and to address growing demand for other health services, such as the Ontario Health Insurance Plan and Ontario Public Drug Programs (page 180). 

Notably, page 19 of the Budget identifies healthcare infrastructure investments both within and outside of hospitals. We expect the “other health” infrastructure expenditures will support infrastructure-related requirements of primary care team expansion, primary care teaching clinics, Homelessness and Addiction Recovery Treatment Hubs, diagnostic equipment, and other such programs. 

Other notable mentions of investments elsewhere in healthcare: 

• • Page 125 – hospitals  

• • Page 125 – home/community care 

• • Page 125 – supportive housing 

• • Page 126 – training and retention 

• • Page 127-128 – hospital infrastructure 

• • Page 129 – long-term care 

Key Takeaway 

This year’s investments in primary care are a win for primary care teams after months of pre-budget advocacy by AFHTO, its members, and members of the Primary Care Collaborative—and particularly in the context of the province’s larger than expected deficit in 2026-27.