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
BREAKING Shooting outside of Drake's Bridle Path mansion, 1 person seriously injured: source
Toronto police are investigating a shooting that took place outside of Drake’s Bridle Path mansion early Tuesday morning, a source tells CP24.
King Charles too busy to see son Prince Harry during U.K. trip
Prince Harry will not be seeing his father King Charles during his current visit to Britain as the monarch will be too busy, Harry's spokesperson said on Tuesday.
Your body needs these three forms of movement every week
Movement is movement, right? Not exactly. Here’s what your body is looking for in addition to your morning walk or yoga session, according to experts.
'It looked so legit': Ontario man pays $7,700 for luxury villa found on Booking.com, but the listing was fake
An Ontario man says he paid more than $7,700 for a luxury villa he found on a popular travel website -- but the listing was fake.
Canadian cadets rock mullets and place second at U.S. military competition
Sporting mullets, Canadian Armed Forces officer cadets placed second in an annual military skills competition in the U.S.
The Met Gala was in full bloom with Zendaya, Jennifer Lopez, Mindy Kaling among the standout stars
The Met Gala and its fashionista A-listers on Monday included Jennifer Lopez, Zendaya and a parade of others in a swirl of flora and fauna looks on a green-tinged carpet lined by live foliage.
Quebec to limit sperm donations per donor after 3 men from same family father hundreds of children
Quebec is looking at tightening the regulations around sperm donation in the province following the release of a documentary that revealed three men from the same family fathered hundreds of children.
How to overcome 'savings guilt' when you're living paycheque to paycheque
As the higher cost of living continues to squeeze household budgets, many Canadians find they have even less left over at the end of every month to squirrel away for the future.
There's actually no such thing as vegetables. Here's why you should eat them anyway
The rumours are true: Vegetables aren't real — that is, in botany, anyway. While the term fruit is recognized botanically as anything that contains a seed or seeds, vegetable is actually a broad umbrella term.