In a report issued on Tuesday, the Economic Accountability Office (FAO) said it arrived at the $8.1 billion deficit after reviewing government spending and finding that the province spent $7.2 billion less than planned on all the programms. The Progressive Conservative government, led by Prime Minister Doug Ford, had projected a $13.5 billion deficit in its most recent budget tabled in April. Higher-than-projected revenues contributed in part to reducing the deficit. The watchdog said its estimated revenue for the 2021-22 financial year was $1.6 billion higher than the government’s. There was also $1.8 billion left over in unallocated emergency funds from the previous fiscal year. FAO said this would help reduce the province’s fiscal deficit and net debt. Chief financial officer Peter Weltman said the difference in deficit figures could probably be attributed to the unpredictability of the pandemic, as economic forecasts have been “up and down” over the past two years. “Given the huge uncertainty because of COVID, I think that explains why there is such a discrepancy,” he said. Ontario’s chief financial officer, Peter Weltman, said that while the pandemic may explain the underspending and the projected smaller deficit, significant underspending by a government would be worth considering if it becomes a permanent trend. (Frank Gunn/Canadian Press) However, while the pandemic may explain this year’s finding, Weltman noted that significant underemployment by a government would be worth considering if it becomes a permanent trend. “If we start to see things like this as a normal feature, then it’s worth taking a deeper look,” he said.
Opposing parties are calling out the Ford government
In education, the report found that the government spent nearly $1 billion less than the previous year, largely due to less spending on pandemic-related programs. There was also less COVID-19-related spending in the “other programs” sector – which includes transit money for municipalities, homeless support and support for businesses and workers – compared to the previous year. NDP finance critic Kathryn Fyfe said the $7.2 billion not spent amounted to “hidden cuts.” “In health care and education, people are begging for investment to attract, train, hire and retain the staff we desperately need,” Fife said. “It’s time to invest to rebuild and improve the public services we all rely on. Instead, the Ford Conservative government has found a way to keep the cuts coming year after year.” The report says the government spent $4.2 billion more on health than the previous year, but spending was still $1.8 billion below original projections. More than the previous year was spent on public health, physician payments and long-term home care, as well as major hospital projects, the report said. These costs were offset by lower government spending on small hospital projects and hospital operations. A new report from Ontario’s Financial Accountability Office found that while the provincial government spent $4.2 billion more on health than the previous year, overall spending was still $1.8 billion below plan. (Evan Mitsui/CBC) The main opposition NDP called the move “incredibly harsh and dangerous” amid ER closures across Ontario, on top of an ongoing staffing crisis. Ontario Green Party Leader Mike Schreiner agreed and said the report confirms the Ford government is underspending on critical services. “It’s shameful and inexcusable that health care is underspent, while nurses and other health care workers are burned out, emergency rooms are overflowing if not closing completely.” “If keeping emergency rooms open doesn’t justify spending – what does?” Ivana Yelich, spokeswoman for Ontario Premier Doug Ford, said in a tweet that the FAO is reporting numbers based on “outdated” data that do not reflect actual government spending. “Just because the money wasn’t recorded as being spent by the time FAO asked for the data doesn’t mean the money wasn’t spent or won’t be spent,” Yelich said. Richard Mullin, a spokesman for the Chancellor of the Exchequer, echoed Yelich and also pointed to the Progressive Conservative government’s “record investments,” including infrastructure projects in both health and education. “We have a plan to achieve this by building Ontario while supporting those who need the help most.”
