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      • Annual Reports
      • Budgets
      • Climate and Environment
      • COVID-19
      • Demographics
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Government Finances 101

  • Government Finances 101

    Welcome to
    Government Finances 101!

    To start the module, click on the "Next" button below to begin.

  • Learning Objectives

    By the end of the module, you will understand:

    • Basic Government Finance
    • The Budget Cycle
    • The Role of MPPs
    • The Role of the Financial Accountability Office
    • The Role of the Auditor General
  • Introduction

    The Legislative Assembly's main responsibilities are to debate and pass legislation, to hold the government to account, and to approve government spending and taxation. The government cannot raise or spend money without the consent of a majority of MPPs.

  • Revenue

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    At its most fundamental level, government finances consist of revenues and expenses. Revenue is where the money the government uses comes from.

    This includes money from taxes, transfers from the federal government, profits from government run business enterprises, and non-tax revenues.

    In the curent budget, the largest revenue source comes from taxes, notably Personal Income and Sales Tax which are driven primarily by the Province's economic performance.

    The third largest revenue source is transfers from the federal government.

    What is the largest source of revenue for the province?

  • Expenditure

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    Government expenditures include ministry expenses accumulated from delivering programs, and the amount the government is spending to pay off interest on debt. The largest single program expenditure for the province is health care.

    What is the largest planned expenditure for the province?

  • Surplus and Deficit

    Surplus and Deficit chart

    A Balanced Budget is when revenue and expenses are equal. A surplus, is when revenue exceeds expenses. A deficit is when expenses are greater than revenue. A deficit can be addressed by borrowing funds, which is paid back with interest over time.

    Does the 2022-23 fiscal outlook in the 2022 Budget illustrate a surplus or deficit?

  • The Fiscal Cycle

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    While fiscal actions of the government largely revolve around the Budget, managing the province's finances is a year-round process, with critical financial documents released every few months to show the government's progress on its fiscal objectives, and to scrutinize past spending.

    The government's financial cycle begins with the Budget which, under the Fiscal Sustainability, Transparency and Accountability Act, 2019, is required to be tabled before the start of the government's fiscal year on April 1st.

    The Budget is followed by the First Quarter Finances Report to be release by August 15th, the Fall Economic Statement to be released by November 15th and the Third Quarter Finances Report to be released by February 15th.

    The Public Accounts, developed after the end of the fiscal year compares actual performance to what was in the Budget. Under the Financial Administration Act (FAA), the Public Accounts must be released within 180 days after the end of the province's fiscal year.

  • Spring

    Spring

    Seating Chart

    A select number of MPPs from the governing party are chosen by the Premier to become Ministers and form the Executive Council - also known as the Cabinet. The Minister of Finance, supported by the Ministry of Finance and its partners, is responsible for developing most of the province's key financial documents, including the budget.

    Hover/tap the seating chart to reveal who sits where in the chamber.

  • Budget Planning

    The Budget chart The Budget chart

    The budget is a financial roadmap that sets the fiscal policy priorities for the government, and outlines expected revenues and expenses for the upcoming fiscal year and the following two years. The budget must be released by March 31st, before the April 1 start of the fiscal year.

  • Legislative Approval Process

    To approve the Budget and provide spending authority for the fiscal year, a majority of MPPs must:

    1. Approve the Budget Motion (a confidence vote for the government)
    2. Approve a Budget Bill (required to implement initiatives announced in the Budget)
    3. Review the Expenditure Estimates (the government's formal request to MPPs for spending authority)
    4. Approve the Supply Bill (required to authorize government spending)

    Approving the Budget Motion in the Legislature is a _________ vote for the current government?

  • Expenditure Estimates (Looking Ahead)

    The Expenditure Estimates are normally released in the Spring, after the Budget is tabled. In the estimates, each Ministry outlines what it expects to spend by major ministry program through "a vote", which is then further broken down into specific spending "items". Expenditure Estimates can be seen as the government's yearly formal request to the Legislature to approve the spending of tax payer money, which gives each ministry legal authority to spend the approved operating and capital budgets in the current Fiscal Year. The Expenditure Estimates are usually tabled in the Legislature within 12 Sessional Days of the Budget.

    Expenditure Estimates outline what each Ministry expects to spend by item and is usually tabled in the legislature within 12 Sessional Days of the Budget.

    Expenditure Estimates outline spending plans for the current fiscal year.
    True or False?

  • Q1 Finances Report

    Summer

    Summer

    The First Quarter Finances Report provides an update on Ontario's fiscal outlook for the current fiscal year, including any changes to the province's revenues and expenses. This report must be released by August 15 of each fiscal year.

    What is updated at the first quarterly fiscal update?

  • Fall Economic Statement

    Fall

    Fall

    Fall Economic Statement report cover

    The Fall Economic Statement (FES) is a mid-year update of the province's economic outlook and fiscal plan that also highlights any new key initiatives the government made since the budget. The FES must be released by November 15 of each fiscal year.

  • Q3 Finances Report

    Winter

    Winter

    The Third Quarter Finances Report provides an update on Ontario's fiscal outlook for the current fiscal year, including any changes to the province's revenues and expenses. This report must be released by February 15 of each fiscal year.

  • Pre-Budget Consultations

    In preparation for the budget, the Ministry of Finance conducts pre-budget consultations to gather input from individuals, organizations, associations and other stakeholders across the province on how the province should tax and spend the public's money. Required under the Fiscal Sustainability, Transparency and Accountability Act (FSTAA), these consultations are held in addition to pre-budget consultations held by the Standing Committee on Finance and Economic Affairs (SCFEA) in the Legislature.

    To prepare for the new upcoming Budget, the government conducts pre-budget consultations with stakeholders across the province to determine what policy ideas should be included in the budget.

    Who does the Ministry of Finance consult during Pre-Budget Consultations?

  • Fiscal Cycle Begins Again

    Drag and drop key documents into the annual fiscal cycle or use the drop down menu.

    First Quarter Finances
    Third Quarter Finances
    The Budget
    Fall Economic Statement
    Pre-Budget Consultations
    Expenditure Estimates

    Correct!

    Try swapping incorrect answers, or reset quiz

  • Public Accounts (Looking Back)

    Public Accounts report cover

    Public Accounts is a key accountability and fiscal document that compares Ontario's actual financial performance with the goals set out in the last Budget, outlines the financial highlights of the completed fiscal year, and presents financial statements audited by the Auditor General of Ontario.

    The Province's consolidated financial statements are audited by the Auditor General.
    True or False?

  • Auditor General

    As an independent and non-partisan officer of the Legislative Assembly, the Auditor General plays an important role in holding the government accountable for financial responsibility, well managed programs and transparency in public reporting. In doing so, the Auditor General conducts financial statement, value-for-money and compliance audits, and reviews of provincial ministries, agencies and broader public sector organizations.

    TIP: The Auditor General audits past government spending while the FAO forecasts future government spending.

  • Financial Accountability Officer

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    Hi, my name is Peter Weltman and I'm the Financial Accountability Officer for the province of Ontario.

    As an independant, non-partisan officer of the Legislative Assembly, my job is to provide MPPs with timely, relevant, and authoritative economic and financial analysis.

    In general, our office provides independant analysis on the state of the province's finances, trends in the provincial economy and other related matters that are significant to the Legislative Assembly of Ontario.

    The Financial Accountability Officer and the Auditor General are both independent and non-partisan officers of the legislature.
    True or False?

  • Congratulations!

    You have completed the Government Finances 101 learning module.

    Feel free to download your reference sheet and certificate of achievement.

    Reference Page
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The Financial Accountability Office was established by the Financial Accountability Officer Act, 2013.

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