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 Officer
  • 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

  What is the largest source of revenue for the province?

  Federal Transfers

  Oil

  Taxes

• Expenditure

  What is the largest expenditure for the province?

  Education

  Health Care

  Interest on Debt

• Surplus and Deficit

  If expenses are greater than revenue, then the budget is in a:

  Surplus

  Deficit

• The Fiscal Cycle

• Cabinet
• 

  Spring

  Budget Planning

  

  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 1st 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?

  Insignificant

  Forgiveness

  Referendum

  Confidence

• Expenditure Estimates

  Expenditure Estimates outline what each ministry expects to spend 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?

  True

  False

• Q1 Finances Report

  

  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?

  Ontario's Fiscal Outlook

  Expenses

  Revenues

  All of the Above

• Fall Economic Statement

  

  Fall

  

  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 15th of each fiscal year.

• Q3 Finances Report

  

  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

  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?

  Individuals

  Organizations

  Associations

  All of the above

• Quiz: The Fiscal Cycle

  Before April 1 First Quarter FinancesThird Quarter FinancesThe BudgetFall Economic StatementPre-Budget ConsultationsExpenditure Estimates

  Within the next 12 sessional days First Quarter FinancesThird Quarter FinancesThe BudgetFall Economic StatementPre-Budget ConsultationsExpenditure Estimates

  Before August 15 First Quarter FinancesThird Quarter FinancesThe BudgetFall Economic StatementPre-Budget ConsultationsExpenditure Estimates

  Before November 15 First Quarter FinancesThird Quarter FinancesThe BudgetFall Economic StatementPre-Budget ConsultationsExpenditure Estimates

  Before February 15 First Quarter FinancesThird Quarter FinancesThe BudgetFall Economic StatementPre-Budget ConsultationsExpenditure Estimates

  Consultations with stakeholders across the provinceFirst Quarter FinancesThird Quarter FinancesThe BudgetFall Economic StatementPre-Budget ConsultationsExpenditure Estimates

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

  If you're using a touch device, long-press to initiate drag and drop.

  First Quarter Finances

  Third Quarter Finances

  The Budget

  Fall Economic Statement

  Pre-Budget Consultations

  Expenditure Estimates

• Public Accounts (Looking Back)

  

  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?

  True

  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

  

  The Financial Accountability Officer is an officer of the Legislative Assembly of Ontario who provides independent analysis to the members and committees of the Assembly about the state of Ontario’s finances, including the budget, and trends in the provincial and national economies.

  MPPs and committees can also request that the FAO conduct research into the Province’s finances, the economy, the Expenditure Estimates, or the financial costs or benefits of any public bill or proposal.

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

  True

  False

• Congratulations!

  You have completed the Government Finances 101 learning module.

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

  Reference Page

  Completion Certificate