FAO RELEASES REPORT COMPARING ONTARIO'S FINANCES WITH OTHER PROVINCES
TORONTO, April 10, 2024 - Today, the Financial Accountability Office of Ontario (FAO) released a report that compares Ontario government revenues, spending, budget balance and net debt with other Canadian provinces based on Statistics Canada's Government Finance Statistics (GFS) for the 2022-23 fiscal year.
Ontario received $12,643 in total revenue per capita in 2022, the lowest in the country and 24.2 per cent below the rest of Canada average, reflecting the Province's lower federal transfers and other non-tax revenues. Since 2008, the first year comparable data is available, Ontario has consistently collected the lowest or second lowest revenue per capita among the provinces.
Ontario's total spending per capita was $13,065 in 2022, also the lowest in Canada and 20.4 per cent below the rest of Canada average, reflecting relatively low per capita spending on health and all other programs which offset Ontario's slightly above-average spending on education. Since 2008, Ontario's total spending per capita has consistently ranked at or near the lowest among the provinces.
According to Statistics Canada's GFS, Ontario recorded a budget deficit of $422 per person in 2022, the third largest deficit among the provinces. British Columbia, Quebec, Nova Scotia and Manitoba also had deficits, while the remaining provinces recorded surpluses.
Ontario's net debt per capita was the highest among the provinces at $19,436 in 2022, more than double the rest of Canada average. Ontario's higher relative net debt results from its frequent budget deficits, which have typically been larger than the average budget deficit in the rest of Canada. However, despite the Province's relatively high debt levels, Ontario's per capita interest on debt payments in 2022 were 8.6 per cent below the rest of Canada average, due to Ontario's below-average effective interest rate of 3.5 per cent.
Find our full report on our website, here.
Quick Facts:
- Ontario collected $9,687 in tax revenue per capita in 2022, $92 (0.9 per cent) below the rest of Canada average of $9,779.
- Ontario received $1,984 per capita in federal transfers in 2022, the lowest among the provinces and $1,927 (49.3 per cent) below the rest of Canada average.
- Health spending per person in Ontario was $4,889 in 2022, the lowest in Canada and $876 (15.2 per cent) below the average of the other provinces.
- Education spending in Ontario was $2,843 per capita in 2022, the fifth highest among the provinces and $71 (2.6 per cent) above the average in the rest of Canada.
- Ontario's interest on debt payments were $927 per capita in 2022, the fourth highest among the provinces.
About the FAO
Under the Financial Accountability Officer Act, 2013, the Financial Accountability Office of Ontario 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 X and LinkedIn.
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For further information, please contact:
Sophia Zhu l 416 931 5498 l SZhu@fao-on.org l fao-on.org
