ONTARIO FINANCES |
 |
| 2000-01 FIRST QUARTER | QUARTERLY UPDATE - JUNE 30, 2000 | Ministry of Finance |
| 2000-01 | ||||
|---|---|---|---|---|
| Interim 1999-00 |
Budget Plan |
Current Outlook |
In-Year Change |
|
| Revenue | 62,472 | 62,060 | 62,063 | 3 |
| Expenditure | ||||
| Programs | 47,581 | 49,525 | 49,536 | 11 |
| Restructuring Fund and Other Charges | 226 | -- | -- | -- |
| Total Programs Expense | 47,807 | 49,525 | 49,536 | 11 |
| Capital | 4,511 | 2,075 | 2,067 | (8) |
| Public Debt Interest | ||||
| Provincial | 8,980 | 8,940 | 8,940 | -- |
| Ontario Hydro Successor Companies | 520 | 520 | 520 | -- |
| Total Expenditure | 61,818 | 61,060 | 61,063 | 3 |
| Reserve | - | 1,000 | 1,000 | -- |
| SURPLUS / (DEFICIT) | 654 | 0 | 0 | -- |
HIGHLIGHTS
2000-01 IN-YEAR PERFORMANCEBALANCED BUDGET OUTLOOK
REVENUE AT $62.1 BILLION
EXPENDITURE AT $61.1 BILLION
RESERVE AT $1 BILLION
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For further information contact Communications Services (416) 325-0333 Frost Building North, Queen´s Park Toronto M7A 1Z1 |
Ce rapport est disponible en français. Renseignements: Services des communications (416) 325-0333 Édifice Frost Nord, Queen´s Park, Toronto M7A 1Z1 téléphone : (416) 325-0333. |
| This document is available on the Internet at: http://www.fin.gov.on.ca/en/engdoc.htm | |
DETAILS OF IN-YEAR CHANGES
FISCAL PERFORMANCE
REVENUE
OPERATING EXPENDITURE
PUBLIC DEBT INTEREST
CAPITAL EXPENDITURE
|
SELECTED FISCAL INDICATORS
 |
The Ontario economy has continued to grow at a healthy pace. Consumer spending, business investment, housing and exports are all contributing to economic growth. Tax cuts, solid job creation and income gains are providing the basis for a sustained expansion. Private-sector economists are, on average, forecasting real growth of 4.8 per cent in 2000. |
| The Government's commitment to controlling spending is demonstrated by significant reductions in program spending as a per cent of Ontario Gross Domestic Product (GDP). A weak economy and rapidly increasing spending pushed program expenditure as a per cent of GDP up to 15.9 per cent in 1992-93. By focusing on priorities such as restoring the economy and increasing health care and education classroom spending, while at the same time finding improvements in the efficiency of government services, program spending is projected to decline to 11.7 per cent of GDP in 2000-01. |  |
 |
In the fall of 1995 the Government set out its Balanced Budget Plan to eliminate the deficit by the year 2000 01. By recording a $654 million surplus for the fiscal year 1999-00, the 2000 Ontario Budget delivered, one year ahead of schedule, on the Government's commitment to balance the budget. With a balanced budget in 1999-00 and 2000-01, Ontario is on track to achieve back-to-back balanced budgets for the first time in more than half a century. |
ECONOMIC PERFORMANCE
STRONG JOB GROWTH IN 2000
STRONG CONSUMER SPENDING GROWTH IN 2000
HOUSING MARKET REMAINS STRONG
MANUFACTURING SHIPMENTS GROWING
AUTO PRODUCTION INCREASING IN 2000
ONTARIO EXPORTS RISING IN 2000
ONTARIO INFLATION REMAINS LOW IN 2000
|
RECENT ECONOMIC DEVELOPMENTS
| Annual | Quarterly | |||||||
|---|---|---|---|---|---|---|---|---|
| 1999 | 98:3 | 98:4 | 99:1 | 99:2 | 99:3 | 99:4 | ||
| Output (Seasonally Adjusted) | ||||||||
| Real GDP | Ontario | 5.7 | 0.8 | 10.4 | 6.2 | 5.6 | 5.5 | 4.0 |
| Nominal GDP | Ontario | 7.1 | (0.5) | 10.3 | 9.3 | 7.8 | 8.4 | 4.8 |
| Annual | Monthly 2000 | |||||||
|---|---|---|---|---|---|---|---|---|
| 1999 | Jan | Feb | Mar | Apr | May | June | ||
| Other Indicators (Seasonally Adjusted) | ||||||||
| Labour Markets | ||||||||
| Labour Force (Change in 000s) | Ontario | 157 | 30 | 14 | 22 | (5) | 4 | 4 |
| Employment (Change in 000s) | Ontario | 198 | 21 | 9 | 28 | 2 | 4 | 8 |
| Private Sector | Ontario | 187 | 18 | (4) | 28 | 2 | 10 | 8 |
| Public Sector | Ontario | 11 | 3 | 12 | 1 | 0 | (6) | 1 |
| Unemployment Rate (%) | Ontario | 6.3 | 5.7 | 5.7 | 5.6 | 5.5 | 5.5 | 5.4 |
| Household Sector | ||||||||
| Retail Sales | Ontario | 7.3 | 0.7 | (1.1) | 2.0 | (1.0) | N/A | N/A |
| Urban Housing Starts (000s) | Ontario | 62.9 | 64.4 | 80.0 | 78.4 | 70.6 | 53.2 | 57.2 |
| New Home Sales* | Toronto | 33.1 | 28.8 | 30.4 | 29.0 | 8.6 | 11.3 | N/A |
| MLS Home Resales* | Ontario | 7.4 | 17.6 | 8.2 | 5.9 | (9.2) | (1.8) | N/A |
| Manufacturing Shipments | Ontario | 11.7 | 0.8 | (2.8) | 4.4 | (3.3) | N/A | N/A |
| Transportation Equipment | Ontario | 21.3 | 0.2 | (4.9) | 5.5 | (4.5) | N/A | N/A |
| Consumer Price Index* | Ontario | 1.9 | 2.4 | 3.1 | 3.4 | 2.2 | 2.5 | 3.2 |
Sources: Statistics Canada, Ontario Ministry of Finance, Canada Mortgage and Housing Corporation, Greater Toronto Home Builders Association, Canadian Real Estate Association and Ward's Automotive.
* % change from a year earlier
FINANCIAL TABLES
REVENUE
| ($ Millions) | 2000-01 | |||
|---|---|---|---|---|
| Interim 1999-00 |
Budget Plan |
Current Outlook |
In-Year Change |
|
| TAXATION REVENUE | ||||
| Personal Income Tax | 17,505 | 17,530 | 17,530 | -- |
| Retail Sales Tax | 12,784 | 13,400 | 13,400 | -- |
| Corporations Tax | 8,596 | 8,765 | 8,765 | -- |
| Employer Health Tax | 3,125 | 3,320 | 3,320 | -- |
| Gasoline Tax | 2,175 | 2,260 | 2,260 | -- |
| Fuel Tax | 635 | 665 | 665 | -- |
| Tobacco Tax | 481 | 510 | 510 | -- |
| Land Transfer Tax | 570 | 580 | 580 | -- |
| Mining Profits Tax | 53 | 55 | 55 | -- |
| Race Tracks Tax | 5 | 5 | 5 | -- |
| Preferred Share Dividends Tax | 35 | 40 | 40 | -- |
| Other Taxation | 228 | 193 | 193 | -- |
| TOTAL | 46,192 | 47,323 | 47,323 | -- |
| GOVERNMENT OF CANADA | ||||
| Canada Health and Social Transfer | 3,767 | 3,548 | 3,548 | -- |
| Increase in CHST Allocation | 190 | 552 | 552 | -- |
| CHST Supplements | 755 | 757 | 757 | -- |
| Social Housing | 503 | 533 | 533 | -- |
| Student Assistance | 171 | 171 | 171 | -- |
| Indian Welfare Services | 112 | 114 | 114 | -- |
| Bilingualism Development | 65 | 64 | 64 | -- |
| Employability Assistance for People with Disabilities | 66 | 66 | 66 | -- |
| Canada-Ontario Infrastructure Works | 25 | -- | -- | -- |
| Other | 234 | 227 | 227 | -- |
| TOTAL | 5,888 | 6,032 | 6,032 | -- |
| INCOME FROM GOVERNMENT ENTERPRISES | ||||
| Ontario Lottery and Gaming Corporation* | 1,811 | 1,695 | 1,695 | -- |
| Liquor Control Board of Ontario | 844 | 915 | 915 | -- |
| Ontario Hydro Successor Companies | 820 | 795 | 795 | -- |
| Other | 32 | 18 | 18 | -- |
| TOTAL | 3,507 | 3,423 | 3,423 | -- |
| OTHER REVENUE | ||||
| Vehicle and Driver Registration Fees | 923 | 920 | 920 | -- |
| Other Fees and Licences | 637 | 670 | 670 | -- |
| Liquor Licence Revenue | 528 | 530 | 530 | -- |
| Royalties | 294 | 240 | 240 | -- |
| Sales and Rentals | 2,339 | 790 | 790 | -- |
| Fines and Penalties | 40 | 35 | 35 | -- |
| Local Services Realignment - Reimbursement of Expenditure |
1,665 | 1,572 | 1,572 | -- |
| Miscellaneous | 459 | 525 | 528 | 3 |
| TOTAL | 6,885 | 5,282 | 5,285 | 3 |
| TOTAL REVENUE | 62,472 | 62,060 | 62,063 | 3 |
| TOTAL REVENUE EXCLUDING HIGHWAY 407 SALE | 60,892 | 62,060 | 62,063 | 3 |
* Effective April 1, 2000, the Ontario Lottery Corporation and Ontario Casino Corporation merged to form the Ontario Lottery and Gaming Corporation
OPERATING EXPENSE
| ($ Millions) | 2000-01 | |||
|---|---|---|---|---|
| MINISTRY | Interim 1999-00 |
Budget Plan |
Current Outlook |
In-Year Change |
| Agriculture, Food and Rural Affairs | 328 | 446 | 446 | -- |
| Attorney General | 803 | 882 | 882 | -- |
| Board of Internal Economy | 155 | 121 | 121 | -- |
| Citizenship, Culture and Recreation | 455 | 398 | 398 | -- |
| Community and Social Services | 7,604 | 7,504 | 7,504 | -- |
| Consumer and Commercial Relations | 135 | 146 | 146 | -- |
| Correctional Services | 562 | 591 | 591 | -- |
| Economic Development and Trade | 94 | 99 | 99 | -- |
| Education | 7,823 | 8,026 | 8,124 | 98 |
| School Board Phase-in Funding | 268 | -- | -- | -- |
| Teachers' Pension Plan (TPP) | (363) | (711) | (711) | -- |
| Energy, Science and Technology | 128 | 241 | 241 | -- |
| Environment | 174 | 158 | 162 | 4 |
| Executive Offices | 21 | 22 | 22 | -- |
| Finance - Own Account | 739 | 787 | 787 | -- |
| Public Debt Interest | ||||
| Provincial | 8,980 | 8,940 | 8,940 | -- |
| Ontario Hydro Successor Companies | 520 | 520 | 520 | -- |
| Community Reinvestment Fund | 521 | 537 | 537 | -- |
| Health and Long-Term Care | 20,600 | 21,988 | 21,988 | -- |
| Major One-Time Health Care Costs | 286 | -- | -- | -- |
| Intergovernmental Affairs | 4 | 5 | 5 | -- |
| Labour | 101 | 100 | 100 | -- |
| Management Board Secretariat | 355 | 298 | 298 | -- |
| Public Service/OPSEU Pension Plan | (144) | (248) | (248) | -- |
| Contingency Fund | -- | 1,165 | 1,063 | (102) |
| OPS Employee Severance (Net) | 77 | -- | -- | -- |
| Municipal Affairs and Housing | 1,725 | 1,644 | 1,644 | -- |
| Native Affairs Secretariat | 13 | 16 | 16 | -- |
| Natural Resources | 458 | 376 | 384 | 8 |
| Northern Development and Mines | 114 | 274 | 274 | -- |
| Office of Francophone Affairs | 4 | 4 | 4 | -- |
| Solicitor General | 827 | 856 | 859 | 3 |
| Tourism | 70 | 76 | 76 | -- |
| Training, Colleges and Universities | 3,252 | 3,387 | 3,387 | -- |
| Transportation | 618 | 537 | 537 | -- |
| Year-End Savings | -- | (200) | (200) | -- |
| TOTAL OPERATING EXPENDITURE | 57,307 | 58,985 | 58,996 | 11 |
CAPITAL EXPENSE
| ($ Millions) | 2000-01 | |||
|---|---|---|---|---|
| MINISTRY | Interim 1999-00 |
Budget Plan |
Current Outlook |
In-Year Change |
| Agriculture, Food and Rural Affairs | 1 | 80 | 80 | -- |
| Attorney General | 59 | 64 | 64 | -- |
| Citizenship, Culture and Recreation | 15 | 71 | 71 | -- |
| Community and Social Services | 20 | 20 | 20 | -- |
| Correctional Services | 124 | 156 | 156 | -- |
| Education | 54 | 5 | 5 | -- |
| Energy, Science and Technology | 500 | -- | -- | -- |
| Environment | 7 | 14 | 14 | -- |
| Water Protection Fund | 160 | 51 | 51 | -- |
| Environment | 12 | 3 | 3 | -- |
| SuperBuild Millennium Partnerships | -- | 200 | 200 | -- |
| Health and Long-Term Care | 340 | 291 | 291 | -- |
| Major One-Time Capital Costs | 1,004 | -- | -- | -- |
| Management Board Secretariat | 18 | 12 | 12 | -- |
| Municipal Affairs and Housing | -- | 2 | 2 | -- |
| Native Affairs Secretariat | 6 | 8 | 8 | -- |
| Natural Resources | 97 | 83 | 75 | (8) |
| Northern Development and Mines | 211 | 273 | 273 | -- |
| Solicitor General | -- | 8 | 8 | -- |
| Tourism | 3 | 11 | 11 | -- |
| Training, Colleges and Universities | 1,028 | 44 | 44 | -- |
| Transportation | 852 | 799 | 799 | -- |
| Year-End Savings | -- | (120) | (120) | -- |
| TOTAL CAPITAL EXPENDITURE | 4,511 | 2,075 | 2,067 | (8) |
ONTARIO'S 2000-01 FINANCING PROGRAM
| ($ Millions) | 2000-01 | |||
|---|---|---|---|---|
| Interim 1999-00 |
Budget Plan |
Current Outlook |
In-Year Change |
|
| Deficit / (Surplus) | (654) | 0 | 0 | -- |
| Accruals and Consolidations | 872 | 5,205 | 5,205 | -- |
| Net Borrowing on Behalf of Agencies | (2,468) | -- | -- | -- |
| Increase / (Decrease) in Liquid Reserves | 3,569 | (4,500) | (4,500) | -- |
| Net Cash Requirements | 1,319 | 705 | 705 | -- |
| Maturing Debt | 7,885 | 8,425 | 8,425 | -- |
| Early Redemptions and Debt Buybacks | 1,246 | 500 | 1,200 | 700 |
| Total Financing Requirements | 10,450 | 9,630 | 10,330 | 700 |
| Sources of Funds: | ||||
| Canada Pension Plan Borrowing | 870 | 1,038 | 1,038 | -- |
| Increase / (Decrease) in Short-term Borrowing | 1,126 | -- | -- | -- |
| Long-term Borrowing* | 8,156 | 8,592 | 9,292 | 700 |
| Other Sources | 298 | -- | -- | -- |
| TOTAL FINANCING | 10,450 | 9,630 | 10,330 | 700 |
*Includes Ontario Savings Bonds
For the purposes of the Financing table, budgetary surpluses are expressed as negative numbers.
| ($ Millions) | Issued (as of June 30) |
Remaining | % Completed |
|---|---|---|---|
| LONG-TERM PUBLIC FINANCING (INCLUDING CPP) | 5,773 | 4,557 | 55.9% |
- Long-term financing undertaken in this quarter totalled $5,773 million as follows:
| ($ Million) | |
|---|---|
| Ontario Savings Bonds | 3,372 |
| Canadian Dollar Issues | 1,621 |
| Yen Issues | 352 |
| Yen Issues | 428 |
| Total | 5,773 |
- The 2000 Savings Bonds Program has raised a total of $3,372 million.
- The increase of $700 million in total financing requirements is due to larger than projected redemptions of Ontario Savings Bonds.
- The Net Provincial Debt is forecast at $114.1 billion at March 31, 2001, unchanged from the level at March 31, 2000. If the $1 billion reserve is not needed it will be applied to debt reduction, lowering the Net Provincial Debt to $113.1 billion.