According to the Ontario’s financial watchdog, Financial Accountability Office (FAO), Ontario government has spent $3.5 billion less than anticipated in the first half of 2022–2023; expenditure increases in certain sectors were offset by decreases in scheduled health care spending and transfers from contingency funds.
The Financial Accountability Office (FAO) stated in a report issued on Tuesday that the province’s $193 billion overall expenditure plan was unchanged as of September 30. The province projected expenditure in the first two quarters of the year to be approximately $84 billion, while actual unaudited spending was closer to $80.5 billion.
Peter Weltman, Ontario’s financial accountability officer, said that in the first half of the fiscal year, all sectors spent less than anticipated.
Reallocations inside it “are there, which is typical,” he added. “While overall spending is greater than previous fiscal year, the government is spending less than anticipated this year.”
The government has spent $859 million less on healthcare than anticipated so far this fiscal year, with around $502 million of that amount going toward “population and public health,” a section mostly supported by the COVID-19 Response programme.
According to the report, the province used 11% of the $1.7 billion budget for its COVID-19 Response programme during the first half of the fiscal year.
According to Weltman, who said that he can’t guess as to why the government has only used a tiny percentage of the pandemic budget, “It might be that they over budgeted solely because they didn’t want to be caught short because of the experience of the last few years.”
“Public health activities hasn’t been at about the same level either. No longer do we test everyone. There are many things we used to do that we no longer do, and it’s possible that they said, “Well, you know, let’s make sure we have some money set aside in case we have to go back there.”
Spending $859 million less on health care is “indefensible,” according to NDP Finance and Treasury Board Critic Catherine Fife, who also noted that the money could have gone toward a “comprehensive, broad immunisation programme.”
The FAO report, according to the Progressive Conservatives, is only a “snapshot in time” and does not accurately reflect all of the government’s spending.
According to the FAO, the Ministry of Transportation spent $565 million less on transit operating costs while also spending $887 million less than anticipated on Metrolinx, the provincial transit agency.
According to Weltman, the reason for this budget discrepancy may be delayed infrastructure projects.
If the work hasn’t been completed, you won’t write a check for it. Therefore, if the task takes longer to complete, it will take longer to withdraw the funds. But that implies that the money will be spent later rather than now.
The government upped its expenditure plans by around $387 million as of the end of the second quarter, but that rise was offset by a $14 billion decrease in anticipated health care spending and a $373 million internal transfer from the province’s contingency fund.
“Health policy and research” were primarily responsible for the reductions in expected health care costs. The province also boosted anticipated financing for long-term care while boosting projected spending for health services including hospital operation and home care.
The Cabinet’s Office and the Ministry of Education both received money from the contingency fund, likely in support of the province’s promise to give Ontario parents $200 or $250 in education-related “catch up” payments.