Highlights
- This report provides information on unaudited spending by the Government of Ontario (the Province) through the first two quarters of the 2024-25 fiscal year (from April 1, 2024 to September 30, 2024).
Changes to the 2024-25 Spending Plan
- In the 2024 Ontario Budget, the Province started the 2024-25 fiscal year with a spending plan of $214.5 billion. 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 through Treasury Board Orders.
- As of the end of the second quarter, the Province’s spending plan was down a net $85 million to $214.4 billion.[1]
- By sector, there were spending plan increases in justice ($307 million), ‘other programs’ ($282 million), children, community and social services ($51 million), health ($17 million), education ($16 million) and postsecondary education ($3 million). This was more than offset by a $760 million transfer from the Contingency Fund.
Unaudited Spending versus Planned Spending
- This report compares unaudited spending against the Province’s spending plan by quarter to provide information on sectors and programs that may be experiencing spending pressures or budget savings, and to track the status of the Province’s full-year spending plan.
- Over the first half of 2024-25, the FAO estimates that the Province spent $98.3 billion compared to planned spending of $97.8 billion. Overall, unaudited spending was $0.5 billion (0.5 per cent) more than planned.
- By sector, higher-than-planned spending was led by health ($2,628 million, 6.7 per cent) and children, community and social services ($278 million, 2.9 per cent). This was partially offset by lower-than-planned spending in ‘other programs’ (-$1,742 million, -11.5 per cent), interest on debt (-$356 million, ‑5.2 per cent), postsecondary education (-$211 million, -3.5 per cent), education (-$123 million, -0.7 per cent) and justice (-$20 million, -0.7 per cent).
- For information on spending by all of the Province’s programs and ministries, visit the FAO’s website at: https://fao-on.org/EM-2024-25-Q2-Spending.
2024-25 Spending versus 2023-24 Spending
- This report also compares 2024-25 unaudited spending against 2023-24 spending to provide context for provincial spending trends and to identify significant year-over-year spending changes.
- The FAO estimates that spending in the first half of 2024-25 was $7.1 billion (7.7 per cent) higher than in the first half of 2023-24.
- The largest year-over-year spending increase was in health ($3,092 million, 7.9 per cent), followed by ‘other programs’ ($1,476 million, 12.3 per cent), education ($1,155 million, 7.0 per cent), interest on debt ($893 million, 16.0 per cent), children, community and social services ($703 million, 7.5 per cent) and justice ($157 million, 6.1 per cent). Postsecondary education was the only sector that experienced a year-over-year decline (-$425 million, -6.9 per cent).
Status of the Contingency Fund
- The Contingency Fund is used to address spending pressures or fund program changes during the fiscal year. The funds within the Contingency Fund cannot be spent directly by the Province but must be transferred to government programs through Treasury Board Orders.
- The Province started the 2024-25 fiscal year with a total of $1.5 billion in the Contingency Fund. In the first and second quarters, the Province transferred $96 million and $665 million, respectively, from the Contingency Fund to various programs. This results in a remaining balance in the Contingency Fund, as of September 30, 2024, of $0.7 billion.[2]
Introduction
This report provides information on the Government of Ontario’s (the Province’s) spending through the first two quarters of the 2024-25 fiscal year, from April 1, 2024 to September 30, 2024. The report:
- identifies changes made to the Province’s 2024-25 spending plan;
- reviews unaudited spending in 2024-25 against both the Province’s spending plan and spending during the same period in 2023-24; and
- tracks transfers from the Province’s Contingency Fund.
New for 2024-25, this report reviews spending on a fully consolidated basis, consistent with the 2024 Ontario Budget and the Public Accounts of Ontario.[3] The information in this report is based on the FAO’s analysis of transactions recorded in the Province’s Integrated Financial Information System (IFIS) as of September 30, 2024, and the FAO’s estimate of additional spending by the broader public sector organizations controlled by the Province (hospitals, school boards, colleges and Children’s Aid Societies), the Province’s agencies and legislative offices. All figures are unaudited, as final audited figures are not available until the release of the Public Accounts of Ontario up to six months after the end of the fiscal year.
2024-25 Spending Plan
As presented in the 2024 Ontario Budget, the Province began the fiscal year with a spending plan of $214.5 billion. This spending plan represents the legal spending authority for ministries as granted by the Legislature through the process of supply,[4] and an estimate of additional spending by the broader public sector organizations controlled by the Province (hospitals, school boards, colleges and Children’s Aid Societies), the Province’s agencies and legislative offices.
Changes to the 2024-25 Spending Plan
The Province may change its spending plan throughout the year, either by requesting additional spending authority from the Legislature through Supplementary Estimates or by reallocating spending among different programs through Treasury Board Orders. As of the end of the second quarter, September 30, 2024, the Province’s spending plan was down $85 million.
By sector, the largest spending plan increase at the end of the second quarter was in justice ($307 million), followed by ‘other programs’ ($282 million), children, community and social services ($51 million), health ($17 million), education ($16 million) and postsecondary education ($3 million). This was more than offset by a $760 million transfer from the Contingency Fund.
In contrast, in the government’s 2024 Ontario Economic Outlook and Fiscal Review (released on October 30, 2024), the Province reported a net spending plan increase of $3.8 billion. The FAO expects that the $3.8 billion spending plan increase will be reflected in the government’s financial accounts in the third quarter of 2024-25.
| Sector | 2024-25 Spending Plan | Q1 Changes | Q2 Changes | Total Changes | Revised 2024-25 Spending Plan |
|---|---|---|---|---|---|
| Health | 84,961 | - | 17 | 17 | 84,978 |
| Education | 39,306 | - | 16 | 16 | 39,321 |
| Postsecondary Education | 12,189 | - | 3 | 3 | 12,192 |
| Children, Community and Social Services | 19,926 | - | 51 | 51 | 19,976 |
| Justice | 5,878 | - | 307 | 307 | 6,186 |
| Other Programs | 36,818 | 53 | 229 | 282 | 37,100 |
| Unallocated Funds: | |||||
| Contingency Fund | 1,505 | -96 | -665 | -760 | 745 |
| Interest on Debt | 13,913 | - | - | - | 13,913 |
| Total | 214,496 | -42 | -43 | -85 | 214,411 |
First and Second Quarter Analysis
This section highlights key spending plan changes in the first half of 2024-25 by sector. For information on all of the Province’s programs and ministries, visit the FAO’s website at: https://fao-on.org/EM-2024-25-Q2-Spending.
Justice: $307 million increase for salaries and wages across various vote-items related to the repeal of Bill 124, the Protecting a Sustainable Public Sector for Future Generations Act, 2019.
Other Programs: $282 million increase. Notable changes include:
- $203 million increase for salaries and wages across various vote-items related to the repeal of Bill 124, the Protecting a Sustainable Public Sector for Future Generations Act, 2019.
- $87 million increase for the Ministry of Finance, Office of Government Business Enterprise and Strategic Initiatives (Vote-Item 1202-7) for payments to The Beer Store as part of the decision to accelerate the expansion of alcohol sales.
Unaudited Spending
Unaudited Spending versus Planned Spending
This report compares unaudited spending against the Province’s spending plan by quarter[5] to provide information on sectors and programs that may be experiencing spending pressures or budget savings, and to track the status of the Province’s full-year spending plan.
Over the first half of 2024-25, the FAO estimates that the Province spent $98.3 billion compared to planned spending of $97.8 billion. Overall, unaudited spending was $0.5 billion (0.5 per cent) more than planned.
Figure 12024-25 unaudited spending versus planned spending, by quarter, $ billions
Source: FAO analysis of information provided by Treasury Board Secretariat.
Accessible version
| Q1 | Q2 | Q3 | Q4 | |
| Planned Spending | 46.6 | 51.2 | 52.1 | 64.5 |
| Unaudited Spending | 47.9 | 50.4 | - | - |
By sector, higher-than-planned spending was led by health ($2,628 million, 6.7 per cent) and children, community and social services ($278 million, 2.9 per cent). This was partially offset by lower-than-planned spending in ‘other programs’ (-$1,742 million, -11.5 per cent), interest on debt (-$356 million, -5.2 per cent), postsecondary education (-$211 million, -3.5 per cent), education (-$123 million, -0.7 per cent) and justice (-$20 million, -0.7 per cent).
| Sector | Revised 2024-25 Spending Plan |
Planned Spending at end of Q2 |
Unaudited Spending at end of Q2 |
Unaudited vs. Planned at end of Q2 |
Unaudited vs. Planned (%) |
|---|---|---|---|---|---|
| Health | 84,978 | 39,520 | 42,148 | 2,628 | 6.7 |
| Education | 39,321 | 17,832 | 17,710 | -123 | -0.7 |
| Postsecondary Education | 12,192 | 5,977 | 5,767 | -211 | -3.5 |
| Children, Community and Social Services | 19,976 | 9,755 | 10,034 | 278 | 2.9 |
| Justice | 6,186 | 2,738 | 2,718 | -20 | -0.7 |
| Other Programs | 37,100 | 15,182 | 13,440 | -1,742 | -11.5 |
| Unallocated Funds: | |||||
| Contingency Fund | 745 | - | - | - | - |
| Interest on Debt | 13,913 | 6,841 | 6,486 | -356 | -5.2 |
| Total | 214,411 | 97,846 | 98,302 | 456 | 0.5 |
The rest of this section highlights key program spending that was above and below plan in the first half of 2024-25. For information on spending by all of the Province’s programs and ministries, visit the FAO’s website at: https://fao-on.org/EM-2024-25-Q2-Spending.
Health sector spending: $2,628 million (6.7 per cent) more than planned. Highlights include:
- $1,278 million more than planned in Health Services (Vote-Item 1416-1), which funds the operation of hospitals, home care, community services and other services.
- $1,059 million more than planned in Ontario Health Insurance (Vote-Item 1405-1), which administers payments to physicians and practitioners.
- $387 million more than planned in Drug Programs (Vote-Item 1405-2), which funds a number of provincial drug programs, the largest of which is the Ontario Drug Benefit Program.
- $111 million more than planned in Long-Term Care Homes Program (Operating) (Vote-Item 4502-1), which funds the operation and development of long-term care homes.
- $172 million less than planned in Health Capital Program (Vote-Item 1407-1), which provides capital funding to hospitals and other health care facilities.
Education sector spending: $123 million (-0.7 per cent) less than planned. Highlights include:
- $120 million less than planned in Elementary and Secondary Education Program – Policy and Program Delivery (Vote-Item 1002-1), which mainly funds school boards.
Postsecondary education sector spending: $211 million (-3.5 per cent) less than planned. Highlights include:
- $229 million less than planned in Colleges, Universities and Student Support (Vote-Item 3002-1), which provides operating grants for colleges and universities, and student financial assistance programs.
Children, community and social services sector spending: $278 million (2.9 per cent) more than planned. Highlights include:
- $279 million more than planned in Financial and Employment Supports (Vote-Item 702-3), which includes the Ontario Disability Support Program, Ontario Works and the Ontario Drug Benefit Plan.
Other programs sector spending: $1,742 million (-11.5 per cent) less than planned. Highlights include:
- $155 million more than planned in Ministry of Transportation, Transit (Operating) (Vote-Item 2702-2), which provides operating funding for Metrolinx and public transit funding to municipalities.
- $97 million more than planned in Ministry of Energy and Electrification, Electricity Price Mitigation (Vote-Item 2905-1), which includes electricity subsidy programs such as the Ontario Electricity Rebate and Comprehensive Electricity Plan.
- $151 million less than planned in Treasury Board Secretariat, Supply Chain Transformation Office (Vote-Item 3416-1).
- $162 million less than planned in Ministry of Infrastructure, Government Infrastructure Projects (Capital) (Vote-Item 4007-2), which mainly provides capital funding for East Harbour Transit-Oriented Communities.
- $163 million less than planned in Ministry of Tourism, Culture and Sport, Ontario Cultural Media Tax Credits (Vote-Item 3808-1), which provides subsidies to Ontario-based companies in film, television, interactive digital media or publishing industries.
- $479 million less than planned in Ministry of Economic Development, Job Creation and Trade, Economic Development and Innovation (Vote-Item 902-13), which funds a number of business support programs.
- $923 million less than planned in Ministry of Transportation, Transit (Capital) (Vote-Item 2702-3), which mainly provides capital funding for Metrolinx and municipal transit infrastructure projects.
- $958 million less than planned in Ministry of Infrastructure, Infrastructure Programs – Capital (Vote-Item 4003-2), which funds infrastructure programs, such as Broadband and Cellular Infrastructure and various Federal-Provincial programs.
- A net $841 million more than planned in the remaining vote-items and consolidation adjustments in the ‘other programs’ sector.
Interest on Debt spending: $356 million (-5.2 per cent) less than planned.
2024-25 Spending versus 2023-24 Spending
This report also compares 2024-25 unaudited spending against 2023-24 spending to provide context for provincial spending trends and to identify significant year-over-year spending changes.
In the first half of 2024-25, the FAO estimates that the Province spent $98.3 billion. This was $7.1 billion (7.7 per cent) more than was spent in the first half of 2023-24. The largest year-over-year spending increase was in health ($3,092 million, 7.9 per cent), followed by ‘other programs’ ($1,476 million, 12.3 per cent), education ($1,155 million, 7.0 per cent), interest on debt ($893 million, 16.0 per cent), children, community and social services ($703 million, 7.5 per cent) and justice ($157 million, 6.1 per cent). The postsecondary education sector experienced a year-over-year decline (-$425 million, -6.9 per cent).
| Sector | 2023-24 Spending at end of Q2 |
2024-25 Spending at end of Q2 |
2024-25 vs. 2023-24 |
2024-25 vs. 2023-24 (%) |
|---|---|---|---|---|
| Health | 39,056 | 42,148 | 3,092 | 7.9 |
| Education | 16,555 | 17,710 | 1,155 | 7.0 |
| Postsecondary Education | 6,192 | 5,767 | -425 | -6.9 |
| Children, Community and Social Services | 9,330 | 10,034 | 703 | 7.5 |
| Justice | 2,561 | 2,718 | 157 | 6.1 |
| Other Programs | 11,964 | 13,440 | 1,476 | 12.3 |
| Interest on Debt | 5,593 | 6,486 | 893 | 16.0 |
| Total | 91,251 | 98,302 | 7,051 | 7.7 |
- The health sector spent $3,092 million (7.9 per cent) more in the first half of 2024-25 compared to the same period in 2023-24, largely due to higher spending for:
- Operation of Hospitals ($1,457 million);
- payments to physicians and practitioners ($910 million);
- Home Care ($257 million);
- the operation of long-term care homes ($155 million); and
- Drug Programs (Vote-Item 1405-2) ($143 million).
- The education sector spent $1,155 million (7.0 per cent) more in the first half of 2024-25 compared to the same period in 2023-24, largely due to higher spending for:
- operating grants to school boards ($986 million);[6] and
- the Child Care and Early Years program ($103 million).
- The postsecondary education sector spent $425 million (-6.9 per cent) less in the first half of 2024-25 compared to the same period in 2023-24, largely due to lower operating spending by colleges (-$752 million).
- The children, community and social services sector spent $703 million (7.5 per cent) more in the first half of 2024-25 compared to the same period in 2023-24, largely due to higher spending for:
- Ontario Works – Financial Assistance ($308 million);
- Ontario Disability Support Program – Financial Assistance ($193 million); and
- Developmental Services – Supportive Living ($91 million).
- The justice sector spent $157 million (6.1 per cent) more in the first half of 2024-25 compared to the same period in 2023-24, due to higher spending on a variety of programs.
- The ‘other programs sector’ spent $1,476 million (12.3 per cent) more in the first half of 2024-25 compared to the same period in 2023-24, largely due to higher spending for:
- Ministry of Energy and Electrification, the Ontario Electricity Rebate ($523 million);
- Ministry of Transportation, Metrolinx operating subsidies ($185 million);
- Ministry of Municipal Affairs and Housing, Building Faster Fund (Capital) ($143 million); and
- Ministry of Transportation, Metrolinx infrastructure projects ($118 million);
- Ministry of Municipal Affairs and Housing, Homelessness Programs (Operating) (-$144 million).
- Interest on debt spending was $893 million (16.0 per cent) more in the first half of 2024-25 compared to the same period in 2023-24.
Status of the Contingency Fund
The Contingency Fund is used to address spending pressures or fund program changes during the fiscal year. The funds within the Contingency Fund cannot be spent directly by the Province but must be transferred to government programs through Treasury Board Orders.
The Province started the 2024-25 fiscal year with a total of $1.5 billion in the Contingency Fund. In the first quarter, the Province transferred $96 million from the Contingency Fund to various programs. In the second quarter, the Province transferred $665 million from the Contingency Fund to various programs. This results in a remaining balance in the Contingency Fund, as of September 30, 2024, of $0.7 billion.
In the 2024 Ontario Economic Outlook and Fiscal Review, the Province added $0.9 billion to the Contingency Fund. The FAO expects that this top-up will be reflected in the government’s financial accounts in the third quarter of 2024-25.
| Ministry/Program | $ millions | |
|---|---|---|
| Opening Contingency Fund Balance as of April 1, 2024 | 1,505 | |
| First Quarter Transfers to Ministries | ||
| Ministry of Northern Development | ||
| Northern Development (Operating Asset) | 9 | |
| Ministry of Finance | ||
| Government Business Enterprise – Other Transactions | 87 | |
| Less: Total First Quarter Transfer to Ministries | -96 | |
| Second Quarter Transfers to Ministries | ||
| Ministry of Agriculture, Food and Agribusiness | ||
| Agricultural Drainage Infrastructure Program | 14 | |
| Salaries and Wages – Various Programs | 7 | |
| Ministry of the Attorney General | ||
| Salaries and Wages – Various Programs | 83 | |
| Cabinet Office | ||
| Salaries and Wages – Main Office | 4 | |
| Ministry of Children, Community and Social Services | ||
| Salaries and Wages – Various Programs | 43 | |
| Capital Grants | 8 | |
| Ministry of Citizenship and Multiculturalism | ||
| Ontario Heritage Trust | 1 | |
| Salaries and Wages – Various Programs | 1 | |
| Ministry of Colleges and Universities | ||
| Salaries and Wages – Various Programs | 3 | |
| Ministry of Economic Development, Job Creation and Trade | ||
| Salaries and Wages – Various Programs | 5 | |
| Ministry of Education | ||
| Salaries and Wages – Various Programs | 16 | |
| Ministry of Energy and Electrification | ||
| Salaries and Wages – Various Programs | 2 | |
| Ministry of Environment, Conservation and Parks | ||
| Salaries and Wages – Various Programs | 31 | |
| Ministry of Finance | ||
| Salaries and Wages – Various Programs | 9 | |
| Ministry of Francophone Affairs | ||
| Salaries and Wages – Francophone Affairs Co-ordination | <1 | |
| Ministry of Health | ||
| Salaries and Wages – Various Programs | 30 | |
| Ministry of Indigenous Affairs | ||
| Salaries and Wages – Various Programs | 1 | |
| Ministry of Infrastructure | ||
| Salaries and Wages – Various Programs | 6 | |
| Ministry of Labour, Immigration, Training and Skills Development | ||
| Salaries and Wages – Various Programs | 20 | |
| Ministry of Long-Term Care | ||
| Salaries and Wages – Various Programs | 9 | |
| Ministry of Mines | ||
| Salaries and Wages – Various Programs | 2 | |
| Ministry of Municipal Affairs and Housing | ||
| Salaries and Wages – Various Programs | 4 | |
| Ministry of Natural Resources and Forestry | ||
| Salaries and Wages – Various Programs | 26 | |
| Forestry Initiatives | 10 | |
| Ministry of Northern Development | ||
| Northern Development (Operating Asset) | 15 | |
| Salaries and Wages – Various Programs | 1 | |
| Office of the Lieutenant Governor | ||
| Salaries and Wages – Office of the Lieutenant Governor | <1 | |
| Ministry of Public and Business Service Delivery | ||
| Salaries and Wages – Various Programs | 32 | |
| Ministry for Seniors and Accessibility | ||
| Salaries and Wages – Various Programs | 1 | |
| Ministry of the Solicitor General | ||
| Salaries and Wages – Various Programs | 224 | |
| Ministry of Tourism, Culture and Sport | ||
| Agencies and Attractions Sector Support | 4 | |
| Salaries and Wages – Various Programs | 2 | |
| St. Lawrence Parks Commission | 1 | |
| Ontario Tourism Marketing Partnership Corporation | 1 | |
| Ontario Media Development Corporation | 1 | |
| Ministry of Transportation | ||
| Salaries and Wages – Various Programs | 18 | |
| Transportation Infrastructure Management (Capital Asset) | 7 | |
| Transportation Safety (Capital Asset) | <1 | |
| Treasury Board Secretariat | ||
| Salaries and Wages – Various Programs | 22 | |
| Less: Total Second Quarter Transfer to Ministries | -665 | |
| Contingency Fund Balance as of September 30, 2024 | 745 |
Footnotes
[1] In the 2024 Ontario Economic Outlook and Fiscal Review, the Province reported a net spending plan increase of $3.8 billion. The FAO expects that the $3.8 billion spending plan increase will be reflected in the government’s financial accounts in the third quarter of 2024-25.
[2] In the 2024 Ontario Economic Outlook and Fiscal Review, the Province added $0.9 billion to the Contingency Fund. The FAO expects that this top-up will be reflected in the government’s financial accounts in the third quarter of 2024-25.
[3] Previously, Expenditure Monitor reports reviewed spending by the Province’s ministries and excluded additional spending by the broader public sector organizations controlled by the Province (hospitals, school boards, colleges and Children’s Aid Societies), the Province’s agencies and the legislative offices.
[4] Temporary spending authority is first granted by the Legislature through the Interim Appropriation Act, with final spending authority then granted through the Supply Act. Permanent spending authority is also granted through other legislation for a limited number of programs.
[5] To manage and monitor its program spending during the fiscal year, the Province divides its spending plan into planned spending by quarter, which reflects historical spending patterns, seasonality and other factors. For 2024-25, the Province plans to spend $46.6 billion in the first quarter, $51.2 billion in the second quarter, $52.1 billion in the third quarter and $64.5 billion in the fourth quarter.
[6] Operating grants to school boards includes the School Board Operating Grants, School Board Debt Service Costs, Education Property Tax Non-Cash Expense and Responsive Education programs.