Ontario's health spending lowest in Canada in 2022-2023: report

Ontario's health care spending was the lowest in Canada per capita and below the average of other provinces in the 2022-2023 fiscal year, according to a new report by a government watchdog.

The Financial Accountability Office (FAO) of Ontario report, released Wednesday, compares Ontario government spending, revenues, budget balance and net debt with other Canadian provinces using Statistics Canada's government finance statistics for that year. The FAO provides independent analysis on the state of the province's finances.

According to the report, health care spending per capita in Ontario was $4,889 in 2022-2023, the lowest in Canada, and $876, or 15.2 per cent, below the average of the other provinces. Health care spending includes spending on hospital and outpatient services, medical products and equipment, and public health services. You can read the report here.

"Since 2008, Ontario's health spending per capita has consistently ranked at or near the lowest in Canada," the report reads.

Education spending in Ontario, however, was $2,843 per capita in 2022, the fifth highest among the provinces and $71, or 2.6 per cent, above the average of the other provinces. Education spending includes spending on primary, secondary and post-secondary education programs.

In an email statement Thursday, Hannah Jensen, a spokesperson for Minister of Health Sylvia Jones, said this year the province has invested over $85 billion into the health-care system — something she says is "the health-care budget of nearly every single province and territory combined."

"As always, the FAO report does not take into account the full project expenditure and is only a snapshot in time," she wrote. "Accurate, comprehensive and updated figures will be reported in estimates."

Lowest total spending of all provinces

Overall, the report found that Ontario received the lowest total revenue per capita of the provinces and had the lowest total spending and the lowest total program spending. It also found that Ontario had the third largest deficit and the highest net debt per capita among the provinces.

Opposition party members say the province is not meeting the needs of Ontario residents by spending the lowest in Canada of the province per capita on health care.

Ontario NDP Leader Marit Stiles accused the Doug Ford government of being negligent.

"We're seeing their neglect through health care staffing shortages, long wait times at the ER, housing starts that are way down. While the Conservatives drain the system of resources, hardworking people are paying the price," Stiles said in an email on Wednesday.

Ontario Liberal MPP Adil Shamji said in an email on Wednesday said the report shows that the province is failing residents.

"Amidst a crisis, it is completely unacceptable for Canada's largest province to have the lowest per-capita healthcare funding, especially when 2.3 million people don't have a family doctor and emergency rooms are closing every week," Shamji said. 

"Under Doug Ford, Ontario has seen the worst healthcare system performance in our province's history, and along with rampant mismanagement, this is an important reason why."

Ontario Green Party Leader Mike Schreiner said in a statement on Wednesday that the province is leaving ordinary Ontario residents behind.

"Despite having one of the highest budget deficits on record, the Ford government has repeatedly failed to put forward solutions that make Ontarians' lives easier and more affordable," Schreiner said.

Ontario received lowest amount in federal transfers

The report found that in 2022-2023:

• Ontario received $12,643 in total revenue per capita, the lowest among the provinces and $4,034, or 24.2 per cent below the average for the rest of Canada, which is $16,676. 
• Ontario's total spending per capita of $13,065 was the lowest among the provinces and $3,338, or 20.4 per cent, below the rest of Canada average, which is $16,403.
• Ontario's program spending of $12,138 per capita was the lowest among the provinces and $3,251, or 21.1 per cent, lower than the rest of Canada average, which is $15,389.
• Ontario's budget deficit of $422 per person was the third largest deficit among the provinces. Ontario was one of five provinces to record a deficit in that fiscal year, along with Manitoba, Nova Scotia, Quebec and British Columbia.
• Ontario's net debt per capital was the highest among the provinces at $19,436 in 2022 and $9,997, or 105.9 per cent. above the rest of Canada average, which is $9,439. 

"Ontario's higher relative net debt results from its frequent budget deficits, which have typically been larger than the average budget deficit in the rest of Canada," the FAO said in a news release.

"However, despite the province's relatively high debt levels, Ontario's per capita interest on debt payments in 2022 were 8.6 per cent below the rest of Canada average, due to Ontario's below-average effective interest rate of 3.5 per cent."

The report also notes that Ontario received $1,984 per capita in federal transfers in 2022-2023, the lowest among the provinces and $1,927, or 49.3 per cent, below the rest of Canada average.