FAO Releases Expenditure Monitor 2023-24: Q4
TORONTO, July 17, 2024– Today, the Financial Accountability Office of Ontario (FAO) released its Expenditure Monitor 2023-24: Q4 report. This report provides information on unaudited spending by the Province through the end of the 2023-24 fiscal year (March 31, 2024), including changes to the Province’s spending plan, an updated total consolidated spending projection and the year-end status of the Contingency Fund.
During the 2023-24 fiscal year, the Province increased its spending plan by $7.6 billion to $204.9 billion, which included increases to health ($3,561 million), education ($3,149 million), ‘other programs’ ($2,315 million), justice ($651 million) and children, community and social services ($57 million). These increases were partially offset by a $2,145 million net decrease in the Contingency Fund.
Based on the transactions recorded in the Province’s financial accounting system as of April 22, 2024, actual unaudited spending was $197.1 billion for 2023-24. This was $7.8 billion (3.8 per cent) less than planned. All sectors spent less than planned, led by ‘other programs’ (-$2,409 million), interest on debt (-$1,828 million), and health (-$1,296 million).
Compared to 2022-23, spending in 2023-24 was $7.8 billion (4.1 per cent) higher. The largest year-over-year spending increase was in health ($5,139 million), followed by education ($4,785 million), children, community and social services ($1,236 million), postsecondary education ($394 million), and justice ($388 million). Two sectors spent less in 2023-24 compared to 2022-23: ‘other programs’ (-$3,613 million) and interest on debt (-$558 million).
Additional spending transactions will be recorded prior to the release of the Public Accounts of Ontario. The FAO projects final total consolidated spending in 2023-24 to be $203.9 billion. This is $3.4 billion less than the Province’s projection of $207.3 billion in the 2024 Ontario Budget. The difference between the two forecasts is primarily due to more up-to-date spending information available to the FAO. Actual audited 2023-24 total consolidated spending will be available with the release of the Public Accounts of Ontario.
To learn more, read the full report here.
Quick Facts
- Higher spending in the education and health sectors is largely due to compensation for the impact of wage restraint under Bill 124, the Protecting a Sustainable Public Sector for Future Generations Act, 2019. A portion of the spending related to Bill 124 will not have a fiscal impact in 2023-24 because it was already recorded as a liability in 2022-23.
- Over the past four years, the FAO’s projection for total consolidated spending in the Fourth Quarter Expenditure Monitor has been, on average, $1.5 billion (0.8 per cent) different from the final audited spending reported in the Public Accounts of Ontario.
- The Province started the 2023-24 fiscal year with a total of $4.0 billion in the Contingency Fund. During the 2023-24 fiscal year, the Province transferred a net $2.1 billion to various programs. At year-end, the Contingency Fund had a remaining balance of $1.9 billion.
About the FAO
Established by the Financial Accountability Officer Act, 2013, the Financial Accountability Office of Ontario (FAO) 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.
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For further information, please contact:
Sophia Zhu | 416 931 5498 | SZhu@fao-on.org | fao-on.org
