Ontario spent $3.5B less than planned in first half of 2022-23. Here's what that means
The Ontario government has spent $3.5 billion less than expected in the first half of 2022-23, according to the province’s financial watchdog, with spending increases in some sectors offset by a reduction in planned health-care spending and contingency fund transfers.
In a report released Tuesday, the Financial Accountability Office (FAO) said the province’s total spending plan of $193 billion remained unchanged as of Sept. 30. In total, the province expected to spend about $84 billion in the first two quarters of the year, but the actual unaudited spending was around $80.5 billion.
All sectors spent less than expected in the first half of the fiscal year, Ontario’s Financial Accountability Officer Peter Weltman added.
“There's some reallocations within it, which is normal,” he said. “While the government is spending less than expected this year, overall spending is higher this fiscal year than it was last year.”
In the health-care sector, the government spent $859 million less than expected so far this fiscal year, including about $502 million less in “population and public health,” a subdivision mainly driven by the COVID-19 Response program.
The report found that in the first six months of the fiscal year, the province spent 11 per cent of its COVID-19 Response program’s $1.7 billion budget.
“It could be that they over allocated just because they didn’t want to be caught short because of the experience of the past few years,” Weltman said, while adding he can’t speculate on why the government has only spent a small portion of the pandemic budget.
“There also hasn't been nearly the same level of public health activity. We’re not testing everybody anymore. There’s a lot of things that we were doing that we aren't doing anymore and it could be that they said well, you know, in case we have to go back there let's make sure we have some money set aside.”
NDP Finance and Treasury Board Critic Catherine Fife said that spending $859 million less in the health sector is "indefensible," noting the money could have been spent on a "comprehensive, widespread vaccination campaign."
The Progressive Conservatives argued the FAO report is just a "snapshot in time" and is not fully representative of the government's spending.
The Ministry of Transportation spent $887 million less than expected on provincial transit agency Metrolinx and other capital municipal infrastructure projects, the FAO found, while also spending about $565 million less on operating costs for transit.
Weltman said this funding difference could be the result of infrastructure projects not being on schedule.
“You’re not going to write a cheque for the work if the work hasn't been done. So if the work takes longer to get done, it'll take longer to get the money out. But what that means is the money, instead of being spent now, will get spent later.”
As of the end of the second quarter, the province increased their spending plans by about $387 million; however that spending was offset by a $14 million reduction in planned health-care spending and a $373 million internal transfer from the province’s Contingency Fund.
The majority of the planned health-care spending reductions came from “health policy and research.” The province also increased planned spending for health services such as hospital operation and home care, while also increasing planned funding for long-term care.
Money from the Contingency Fund was sent to the Ministry of Education, likely to support the province’s pledge to provide Ontario parents $200 or $250 education-related “catch up” payments, as well as the Cabinet’s Office.
CTVNews.ca Top Stories
Wildfire that forced evacuation of Fort Nelson, B.C., caused by tree falling on wires, mayor says
The wildfire that prompted the evacuation of more than 3,000 people near Fort Nelson, B.C., was caused by a tree falling on wires, according to the municipality's mayor.
Couple randomly attacked, 1 stabbed, by group of teens in Toronto, police say
A man has been transported to hospital after police say he was stabbed in a random attack carried out by a group of teens in Toronto on Friday night.
Eurovision Song Contest final kicks off after protests, backstage chaos and a contestant's expulsion
The final of the 68th Eurovision Song Contest kicked off Saturday in the Swedish city of Malmo after days of protests and offstage drama that have tipped the feelgood musical celebration into a chaotic pressure cooker overshadowed by the war in Gaza.
IN PICTURES Northern lights dance across the night sky in southern Ont.
From London, to Grand Bend, Collingwood and Guelph, here are some highlights of Friday night and Saturday morning's northern lights display.
Ron Ellis, who played over 1,000 games with Maple Leafs, dead at 79
Ron Ellis, who played over 1,000 games with the Toronto Maple Leafs and was a member of Canada's team at the 1972 Summit Series, has died at age 79.
'I am angry': Alberta farmers will continue fight over world class motorsport resort
The rolling hills leading to the hamlet of Rosebud are dotted with sprawling farms and cattle pastures -- and a sign sporting a simple message: No Race Track.
opinion How to use your credit card as a powerful wealth-building tool
Irresponsibly using a credit card can land you in financial trouble, but personal finance columnist Christopher Liew says when used properly, it can be a powerful wealth-building tool that can help grow your credit profile and create new opportunities.
Which Canadian cities have the highest and lowest grocery prices?
Where you live plays a big factor in what you pay at the grocery store. And while it's no secret the same item may have a different price depending on the store, city or province, we wanted to see just how big the differences are, and why.
Haitians demand the resignation and arrest of the country's police chief after a new gang attack
A growing number of civilians and police officers are demanding the dismissal and arrest of Haiti's police chief as heavily armed gangs launched a new attack in the capital of Port-au-Prince, seizing control of yet another police station early Saturday.