Watchdog says Ontario spent $10.3B less than planned during last fiscal year

Ontario spent about $10 billion less in the last fiscal year than it had planned, the province's financial watchdog said Wednesday as the opposition criticized the government for not investing those funds in more pandemic supports.

The Financial Accountability Office said in a report that the government had boosted its spending plan by $22.1 billion during the 2020-21 fiscal year, which was marked by the COVID-19 pandemic.

But, the province actually spent $10.3 billion less than planned, including $1 billion less in health and a $3.4-billion end-of-year balance in a contingency fund. That money will go toward reducing Ontario's net debt, projected to be about $400 billion.

The $10.3 billion also includes $1.1 billion less than planned on interest on debt.

The FAO said that for the last 10 years, actual spending was $3.8 billion lower than planned, on average, making this year's figure "significantly higher" than in the previous decade.

'Unprecedented and historic investments'

A spokesman for the president of the treasury board noted that overall spending increased by $21.3 billion compared to the previous year, due to pandemic measures, and that there was no money left over in a Health Fund or a Support for People and Jobs Fund.

"Over the past year, our government has made unprecedented and historic investments to protect the health-care system and support people and businesses across the province," Sebastian Skamski said in a statement.

"Premier [Doug] Ford has said time and again throughout this pandemic that our government will not spare a penny when it comes to the health and safety of the people of Ontario."

The financial watchdog is projecting that the 2020-21 budget deficit will be $29.3 billion, compared to the $38.5 billion the government projected in its last budget. That estimate is based, in part, on revenue expected to be $2.7 billion higher than forecast, since the outlook for Ontario's economy has improved since the budget, the report said.

Voters won't forget: Fife

The NDP reiterated a call for a public inquiry into Ontario's COVID-19 response.

In an interview with CBC Kitchener-Waterloo, NDP finance critic and Waterloo MPP Catherine Fife said it was "pretty clear that this premier lied to the people of Ontario when he said he would spare no expense and yet he sat on $10.3 billion."

She said the money should have been spent on health care, public health, long-term care, support for small businesses and ensuring schools are ready for students to return to in September.

"When I listen to the people of Waterloo and the concerns that they're sharing, I know that they're not going to forget that this premier turned his back on them during a crisis. During the most challenging time that Ontario faced, he chose not to invest, he chose not to spend, and we all paid the price for those decisions," she said.

Liberal Leader Steven Del Duca said Ford "shortchanged" Ontarians.

"My heart breaks thinking of the impact this $10.3 billion could have had if it was put towards providing 10 days of paid sick leave, support for our loved ones in nursing homes, and a safe return to school last September," he wrote in a statement.