Financial Accountability Office finds government spending higher than budgeted
The provincial government has spent $1.7 billion more than anticipated during the first six months of the 2025-26 fiscal year.
The Financial Accountability Office says overall spending is 5.8% higher when comparing it to the same period in 2024-25.
Financial Accountability Officer Jeffrey Nowak says it reflects their budget expectations.
“I think the 5.8 % increase is in line with what we expected when we forecast total spending for the year in our economic and budget outlook,” says Nowak.
“And you can see in the fall economic statement, the government’s outlook as well, added more money to the spending plan, which kind of brings it in line with what we’re seeing.”
Much of the spending increase is attributed to healthcare, where spending was $1.6 billion more.
The FAO says it includes $1 billion more than planned in Ontario Health Insurance, which administers payments to physicians and practitioners.
An additional $938 million funded the operations of hospitals, home care, community services and other services.
“That’s kind of what we expected in our outlook,” says Novak.
“Certainly, there are some pressures there for the government. If you look at payments to physicians, how spending has gone through the first half of the year and also in health services, which includes hospitals, home care, and community care.”
Spending on Long-Term Care Homes was $155 million lower than it was last year.
Children, community, and Social services at $284 million, and post-secondary education at $160 million, also saw increased amounts.
The government also added an extra $99 million to the Ministry of Emergency Preparedness and Response and $90 million to the Ministry of Natural Resources this past year.
Both ministries were active during the province’s wildland fire season.
The FAO says the province has also transferred more than $500 from the Contingency Fund to fund a variety of programs.
The fund remains with a balance of $2.5 billion.
