Economic and Budget Outlook: Assessing Ontario's Medium-term Budget Plan 2019

Financial Accountability Office of Ontario

The Financial Accountability Office of Ontario provides independent analysis of Ontario’s financial trends and the Government’s budgetary projections. The most recent analysis shows that there is considerable room for doubt in the government’s projections. According to the analysis, the government will need to introduce $6 billion worth of unspecified cuts to meet its debt reduction targets. In education alone there are $1.1 billion worth of cuts that the Government has not yet identified. Put another way, to reach its education target, the government will need to cut an additional $1.1 billion by 2021-22 or $3.0 billion by 2023-24.

The report also provides justification for skepticism about the Government’s claim that Ontario faces a fiscal crisis that warrants severe cuts. In fact, Ontario’s per capita program spending in 2017-2018 was only $10,117. That is the lowest of all provinces except B.C. ($9,974) and $1,1397 lower than the Canadian average ($11,514). Similarly, program spending as a percentage of GDP was 17.2, lower than all provinces except Alberta (16.4%).

Attachments

Attachments