FAO RELEASES EXPENDITURE MONITOR 2023-24: Q2
TORONTO, December 19, 2023 – Today, the Financial Accountability Office of Ontario (FAO) released its Expenditure Monitor 2023-24: Q2 report. This report provides an update on the Province’s 2023-24 spending plan and reviews actual unaudited spending by the government over the first two quarters of the 2023-24 fiscal year (April 1, 2023 to September 30, 2023).
The Province may change its spending plan throughout the year, either by requesting additional spending authority from the Legislature or by reallocating spending among different programs. As of the end of the second quarter, September 30, 2023, the Province’s total spending plan was down $32 million to $197.3 billion. By sector, the largest spending plan increase during the second quarter was in health, at $180 million, followed by other programs at $76 million and justice at $21 million. These spending plan increases were fully offset by a $277 million drawdown from the Contingency Fund.
In order to manage and monitor its program spending during the fiscal year, the Province divides its spending plan into expected spending by quarter, which reflects historical spending patterns, seasonality and other factors. Over the first two quarters of 2023-24, the Province planned to spend $85.6 billion. However, actual unaudited spending was $83.6 billion. This was $2.0 billion (2.3 per cent) less than planned. Most sectors spent less than planned, led by other programs (‑$1,530 million), interest on debt (‑$861 million), children, community and social services (-$209 million), education ($129 million) and postsecondary education (-$127 million). Two sectors spent more than planned: health ($811 million) and justice ($63 million).
Compared to the previous year, spending in the first half of the 2023-24 fiscal year was $3.1 billion (3.8 per cent) higher than during the same period in 2022-23. The largest year-over-year spending increase was in health ($1,625 million), followed by education ($611 million), children, community and social services ($495 million), other programs ($462 million), justice ($146 million) and postsecondary education ($39 million). Conversely, interest on debt spending was $302 million less than during the same period in 2022-23.
To learn more, read the full report here.
Quick Facts:
- Key programs with less-than-planned actual unaudited spending include electricity subsidy programs (-$583 million), Ministry of Infrastructure capital programs (-$253 million), social assistance programs (-$183 million), the health capital program (-$143 million) and child care (‑$127 million).
- Key programs with higher-than-planned actual unaudited spending include health services (hospitals, home care, community services) ($428 million) and Ministry of Health drug programs ($279 million).
- Interest on debt spending was $861 million less than planned during the first half of the 2023-24 fiscal year as a result of higher than planned interest revenue on the Province’s cash reserves.
- Programs with the largest year-over-year spending increases include Metrolinx infrastructure projects ($1,086 million), the operation of long-term care homes ($586 million), school board operating grants ($401 million), payments to physicians ($397 million), child care ($344 million) and Ministry of Health drug programs ($334 million).
- The Province started the 2023-24 fiscal year with a total of $4.0 billion in the Contingency Fund. In the first and second quarters, the Province transferred $849 million and $277 million, respectively, from the Contingency Fund to various programs. The remaining balance in the Contingency Fund, as of September 30, 2023, was $2.9 billion.
- In the 2023 Ontario Economic Outlook and Fiscal Review, the Province added $2.5 billion to the Contingency Fund. However, this top-up occurred after the end of the second quarter, September 30, 2023. It is expected to be reflected in the government’s financial accounts in the third quarter of 2023-24.
About the FAO
Under the Financial Accountability Officer Act, 2013, the Financial Accountability Officer provides independent analysis on the state of the Province's finances, trends in the provincial economy, and related matters important to the Legislative Assembly of Ontario. Visit our website and follow us on Twitter and LinkedIn.
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For further information, please contact:
Sophia Zhu | 416 931 5498 | SZhu@fao-on.org | fao-on.org
