FAO: province spent $6.4 billion less than expected over first three quarters of 22–23
A new report by Ontario’s financial watchdog says the government spent $6.4 billion less than expected over the first three quarters of the 2022–23 fiscal year, with less funding being directed to health, education and municipal infrastructure projects in particular.
The Financial Accountability Office of Ontario (FAO) released its Expenditure Monitor 2022–23: Q3 report on March 1. The report provides an update on the province’s annual spending plan, and reviews actual unaudited spending by the government over the first three quarters of the 2022-23 fiscal year.
The report found that at the end of the third quarter of its fiscal year, the government was projected to spend $129.2 billion. Its actual unaudited spending was $122.8 billion, however – a gap of 5%.
FAO Officer Peter Weltman said it is unusual for the province to underspend by this much. This recent historical average, he said, was about two to three percent.
He added it was not “unexpected.”
“It's consistent with our spending projections in our economic and budget outlook reports.”
The FAO report indicates that all sectors spent less than expected, led by ‘other programs’ (-$3.5 billion), health (-$1.2 billion), education (-$844 million), children’s and social services (-$458 million), postsecondary education (-$175 million), justice (-$88 million) and interest on debt (-$87 million).
Key programs with lower-than-expected spending included Metrolinx and municipal infrastructure projects (-$1.2 billion), electricity subsidy programs (-$665 million), Ministry of Infrastructure capital programs (-$644 million), public health (-$605 million), Metrolinx and municipal transit operating funding (-$462 million), social assistance programs (-$453 million), elementary and secondary education programs (-$432 million) and child care programs (-$396 million).
Programs with the largest year-over-year spending increases include childcare ($762 million), payments to physicians ($518 million), drug programs ($422 million), the operation of hospitals ($353 million) and the operation of long-term care homes ($342 million).
Compared to the previous year, spending over the first three quarters of 2022–23 was $2.9 billion (2.4 per cent) higher than during the same period in 2021–22.
The largest year-over-year spending increase was in health ($1.1 billion), followed by education ($852 million), interest on debt ($762 million), children’s and social services ($737 million), postsecondary education ($165 million) and justice ($51 million).