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
'It could be catastrophic': Woman says natural supplement contained hidden painkiller drug
A Manitoba woman thought she found a miracle natural supplement, but said a hidden ingredient wreaked havoc on her health.
After hearing thousands of last words, this hospital chaplain has advice for the living
Hospital chaplain J.S. Park opens up about death, grief and hearing thousands of last words, and shares his advice for the living.
WHO likely to issue wider alert on contaminated cough syrup
The World Health Organization is likely to issue a wider warning about contaminated Johnson and Johnson-made children's cough syrup found in Nigeria last week, it said in an email.
WATCH Video shows dramatic police takedown of carjacking suspects chased through parking lot north of Toronto
Police have released video footage of a dramatic takedown of a group of teens wanted in connection with an attempted carjacking in Markham earlier this month.
Canada, G7 urge 'all parties' to de-escalate in growing Mideast conflict
Canada called for 'all parties' to de-escalate rising tensions in the Mideast following an apparent Israeli drone attack against Iran overnight.
'It was all my savings': Ontario woman loses $15K to fake Walmart job scam
A woman who recently moved to Canada from India was searching for a job when she got caught in an online job scam and lost $15,000.
Families to receive Canada Child Benefit payment on Friday
More money will land in the pockets of some Canadian families on Friday for the latest Canada Child Benefit installment.
After COVID, WHO defines disease spread 'through air'
The World Health Organization and around 500 experts have agreed for the first time on what it means for a disease to spread through the air, in a bid to avoid the confusion early in the COVID-19 pandemic that some scientists have said cost lives.
American millionaire Jonathan Lehrer denied bail after being charged with killing Canadian couple
American millionaire Jonathan Lehrer, one of two men charged in the killings of a Canadian couple in Dominica, has been denied bail.