2012 Ontario Budget: Chapter II: Ontario's Economic Outlook and Fiscal Plan
Section G: Details of Ontario’s Finances

Fiscal Tables and Charts

This section provides information on the Province’s historical financial performance, key fiscal indicators, and details on Ontario’s fiscal plan and outlook.

TABLE 2.26 Medium-Term Fiscal Plan and Outlook
($ Billions)
  Interim Plan Outlook
  2011–12 2012–13 2013–14 2014–15
Revenue 109.3 112.2 116.1 121.0
Expense        
   Programs 114.5 115.8 117.0 117.9
   Interest on Debt1 10.1 10.6 11.2 12.3
Total Expense 124.6 126.4 128.2 130.3
Reserve 1.0 1.2 1.5
Surplus/(Deficit) (15.3) (15.2) (13.3) (10.7)
Net Debt 237.6 260.4 281.0 297.3
Accumulated Deficit 159.9 175.0 188.3 199.1

1 Interest on debt expense is net of interest capitalized during construction of tangible capital assets of $0.2 billion in 2011–12, $0.2 billion in 2012–13, $0.4 billion in 2013–14 and $0.4 billion in 2014–15.
Note: Numbers may not add due to rounding.


TABLE 2.27 Revenue
($ Millions)
  2009–10 Actual
2010–11
Interim
2011–12
Plan
2012–13
Taxation Revenue        
Personal Income Tax1 23,421 23,711 24,222 25,797
Sales Tax2 17,059 18,813 20,885 21,135
Corporations Tax1 6,227 9,067 9,401 10,753
Education Property Tax1,3 5,506 5,659 5,610 5,631
Employer Health Tax 4,545 4,733 5,028 5,149
Ontario Health Premium 2,763 2,934 2,891 3,098
Gasoline Tax 2,336 2,358 2,353 2,371
Land Transfer Tax 1,015 1,247 1,412 1,374
Tobacco Tax 1,083 1,160 1,125 1,185
Fuel Tax 658 702 704 724
Beer and Wine Tax (replacing Fees)4 397 555 557
Electricity Payments-In-Lieu of Taxes 516 321 422 555
Other Taxes 322 562 604 460
  65,451 71,664 75,212 78,790
Government of Canada
Canada Health Transfer 9,791 10,184 10,738 11,378
Canada Social Transfer 4,204 4,330 4,469 4,596
Equalization 347 972 2,200 3,261
Infrastructure Programs 990 1,712 394 204
Labour Market Programs 1,253 1,201 907 897
Social Housing 498 493 482 476
Wait Times Reduction Fund 97 97 97 97
Other Federal Payments 1,440 4,052 2,072 867
  18,620 23,041 21,359 21,776
Government Business Enterprises
Ontario Lottery and Gaming Corporation 1,924 1,956 1,803 1,737
Liquor Control Board of Ontario 1,440 1,562 1,596 1,673
Ontario Power Generation Inc./Hydro One Inc. 854 1,048 1,024 655
Other Government Enterprises (23)
  4,195 4,566 4,423 4,065
Other Non-Tax Revenue
Reimbursements 1,429 1,036 817 990
Vehicle and Driver Registration Fees 1,057 1,080 1,072 1,163
Electricity Debt Retirement Charge 907 944 938 946
Power Supply Contract Recoveries 1,409 1,288 1,387 1,262
Sales and Rentals 647 1,015 1,124 1,068
Other Fees and Licences 717 715 784 819
Beer and Wine Fees (replaced by Tax)4 451 181
Net Reduction of Power Purchase Contract Liability 348 339 317 263
Royalties 228 145 201 204
Miscellaneous Other Non-Tax Revenue5 854 1,161 1,643 894
  8,047 7,904 8,283 7,609
Total Revenue 96,313 107,175 109,277 112,240

1 Historical amounts have been restated to reflect the reclassification of tax expenditures as described in Section F of this chapter.
2 Sales Tax in 2010–11 includes Retail Sales Tax (RST) and Harmonized Sales Tax (HST). The RST was replaced with a value-added tax and combined with the federal Goods and Services Tax to create a federally administered HST. Sales Tax revenue is net of the Ontario Sales Tax Credit and the energy component of the Ontario Energy and Property Tax Credit.
3 Education Property Tax revenue is net of the property tax credit component of the Ontario Energy and Property Tax Credit and the Ontario Senior Homeowners’ Property Tax Grant.
4 Beer and Wine Tax replaces reduced Beer and Wine Fees and the reduced sales tax on alcohol. There is no net new revenue for the Province.
5 Miscellaneous Other Non-Tax Revenue in 2011–12 is higher than other years due to one-time revenues including Chrysler’s repayment of an Ontario loan and higher-than-usual recoveries of prior-year expenditures from government ministries.
Note: Numbers may not add due to rounding.


TABLE 2.28 Total Expense
($ Millions)
Ministry Expense 2009–10 Actual
2010–11
Interim
2011–12
Plan
2012–13
Aboriginal Affairs1 67 65 69.9 75.8
Agriculture, Food and Rural Affairs1 1,265 888 1,043.5 1,124.9
Attorney General2, 3 1,606 1,589 1,692.9 1,731.6
Board of Internal Economy1 187 194 193.9 197.4
Children and Youth Services2 3,590 3,882 4,004.3 4,083.1
Citizenship and Immigration1 101 106 115.6 115.0
Community and Social Services 8,621 9,148 9,646.7 10,003.0
Community Safety and Correctional Services3 2,137 2,218 2,277.6 2,314.8
Consumer Services 17 18 19.8 20.4
Economic Development and Innovation1, 2 796 867 983.9 955.3
Education1 21,184 21,857 23,345.9 23,892.1
Energy1, 2 469 724 367.8 362.1
Environment1 375 521 536.2 485.7
Executive Offices 34 32 31.9 31.4
Finance1, 2 1,492 1,115 1,050.2 1,104.3
Francophone Affairs, Office of 5 5 5.5 5.1
Government Services1, 3 929 973 1,065.0 1,018.0
Health and Long-Term Care2 43,054 44,414 47,268.9 48,369.0
Infrastructure1, 3 133 305 308.8 277.7
Labour1 179 187 188.9 190.9
Municipal Affairs and Housing1 664 670 596.3 585.5
Natural Resources1 685 705 713.3 687.1
Northern Development and Mines2 534 706 768.6 771.3
Tourism, Culture and Sport1, 2 950 1,086 1,200.3 1,105.9
Training, Colleges and Universities1, 2 6,634 6,711 7,160.0 7,508.6
Transportation1 2,092 2,263 2,337.9 2,587.3
Interest on Debt4 8,719 9,480 10,096.9 10,619.0
Other Expense1 9,056 10,457 7,468.9 6,970.5
Year-End Savings5 (800.0)
Total Expense 115,575 121,186 124,559.7 126,392.8

1 Details on other ministry expense can be found in Table 2.29, Other Expense.
2 Historical amounts have been restated to reflect the reclassification of tax expenditures as described in Section F.
3 Reflects a realignment of expenditures associated with the government real estate portfolio.
4 Interest on debt is net of interest capitalized during construction of tangible capital assets of $148 million in 2009–10, $203 million in 2010–11, $227 million in 2011–12 and $248 million in 2012–13.
5 As in past years, the Year-End Savings provision reflects anticipated underspending that has historically arisen at year-end due to factors such as program efficiencies, and changes in project startups and implementation plans.
Note: Numbers may not add due to rounding.


TABLE 2.29 Other Expense
($ Millions)
Ministry Expense 2009–10 Actual
2010–11
Interim
2011–12
Plan
2012–13
Aboriginal Affairs        
   One-Time Investments – Settlements 6 27.8
Agriculture, Food and Rural Affairs        
   Time-Limited Investments in Infrastructure 618 1,496 251.1
   Time-Limited Assistance 27 9
Board of Internal Economy        
   2011 Election Expenses 100.0
Citizenship and Immigration        
   Time-Limited Investments to Support Pan/Parapan Am Games 3 16 59.2 319.6
Economic Development and Innovation        
   One-Time Investments 5
Education        
   Teachers' Pension Plan1 255 522 522.0 850.0
Energy        
   Ontario Clean Energy Benefit 300 1,059.0 1,070.0
Environment        
   One-Time Investments 37
Finance        
   Harmonized Sales Tax Transitional Support 3,039 1,441.6
   One-Time Automotive Sector Support2 3,022
   Ontario Municipal Partnership Fund 781 684 591.7 592.2
   Operating Contingency Fund 250.0 400.0
   Pension Benefit Guarantee Fund 500
   Power Supply Contract Costs 1,409 1,288 1,387.0 1,262.0
   Transition Fund 500.0
Government Services        
   Pension and Other Employee Future Benefits 949 1,182 1,320.0 1,545.0
Infrastructure        
   Capital Contingency Fund 100.0
Labour        
   Prevention Office 108.8
Municipal Affairs and Housing        
   Time-Limited Investments in Municipal Social and Affordable Housing Stock 585 668 58.7 155.2
   Time-Limited Assistance 21 8.7 3.0
Natural Resources        
   Emergency Forest Firefighting 68 100 204.2 64.7
Tourism, Culture and Sport        
   Time-Limited Investments–Sport Program 48 288 38.5
   One-Time Investments 22 3.1
Training, Colleges and Universities        
   Time-Limited Investments 559 816 146.3
Transportation        
   One-Time Transit and Infrastructure Investments 190
Total Other Expense 9,056 10,457 7,468.9 6,970.5

1 Numbers reflect PSAB pension expense. Ontario’s matching contributions to the plan grow from $1,245 million in 2009–10 to $1,459 million in 2012–13.
2 Reflects the fiscal impact of Ontario’s $4.6 billion in support to the automotive industry.
Note: Numbers may not add due to rounding.


TABLE 2.30 2012–13 Infrastructure Expenditures
($ Millions)
Sector Total Infrastructure
Expenditures
2011–12 Interim
2012–13 Plan
Investment
in Capital
Assets1
Transfers
and Other
Infrastructure
Expenditures2
Total
Infrastructure
Expenditures
Transportation        
   Transit 2,444 2,121 422 2,543
   Provincial Highways 1,833 2,398 2,398
   Other Transportation3 831 647 131 778
Health        
   Hospitals 3,046 2,798 127 2,925
   Other Health 268 159 163 322
   Education4 2,130 2,017 72 2,089
Postsecondary        
   Colleges 228 204 204
   Universities 194 112 112
Water/Environment 220 44 155 199
Municipal and Local Infrastructure 731 32 652 683
Justice 910 726 85 811
Other 959 539 287 826
Subtotal 13,794 11,685 2,204 13,889
Less: Other Partner Funding5 903 1,018 1,018
Total Excluding Partner Funding 12,892 10,667 2,204 12,871
Less: Other Capital Contributions6 481 160 175 335
Total Provincial Expenditure7 12,410 10,507 2,029 12,536

1 Investment in Capital Assets includes interest capitalized during construction of tangible capital assets of $248 million.
2 Mainly consists of transfers for capital purposes to municipalities and universities, and expenditures for capital repairs.
3 Other transportation includes highway planning activities, property acquisition, highway service centres and other infrastructure programs (e.g., municipal/local roads, remote airports).
4 Includes a one-time adjustment of $248 million in 2011–12 related to last year’s capital grants that is fully offset by revenue recovery from the school board sector.
5 Third-party contributions to capital investment in consolidated schools, colleges, hospitals and provincial agencies.
6 Mostly federal government transfers for capital investments.
7 Total Provincial Infrastructure Expenditure includes Investment in Capital Assets of $10.5 billion for 2011–12.
Note: Numbers may not add due to rounding.


TABLE 2.31 Ten-Year Review of Selected Financial and Economic Statistics1
($ Millions)
  2003–04 2004–05 2005–062 2006–07 2007–08 2008–09 2009–103 Actual
2010–11
Interim
2011–12
Plan
2012–13
Revenue 74,549 84,192 90,738 97,120 104,115 97,532 96,313 107,175 109,277 112,240
Expense                    
   Programs 70,428 76,379 81,421 86,020 94,601 95,375 106,856 111,706 114,463 115,774
   Interest on Debt4 9,604 9,368 9,019 8,831 8,914 8,566 8,719 9,480 10,097 10,619
Total Expense 80,032 85,747 90,440 94,851 103,515 103,941 115,575 121,186 124,560 126,393
Reserve ­– 1,000
Surplus/(Deficit) (5,483) (1,555) 298 2,269 600 (6,409) (19,262) (14,011) (15,283) (15,153)
Net Debt5 138,816 140,921 152,702 153,742 156,616 169,585 193,589 214,511 237,583 260,411
Accumulated Deficit 124,188 125,743 109,155 106,776 105,617 113,238 130,957 144,573 159,856 175,009
Gross Domestic Product (GDP) at Market Prices 493,081 516,106 537,383 560,576 583,946 587,055 581,635 612,494 638,169 659,662
Personal Income 381,127 400,994 419,457 442,736 466,051 479,217 480,061 500,048 514,874 529,660
Population —
July (000s)
12,242 12,391 12,528 12,665 12,793 12,934 13,073 13,228 13,373 13,533
Net Debt per Capita (dollars) 11,339 11,373 12,188 12,139 12,242 13,111 14,809 16,217 17,766 19,243
Personal Income per Capita (dollars) 31,132 32,363 33,480 34,956 36,430 37,050 36,722 37,803 38,501 39,139
Interest on Debt as a per cent of Revenue 12.9 11.1 9.9 9.1 8.6 8.8 9.1 8.8 9.2 9.5
Net Debt as a per cent of GDP 28.2 27.3 28.4 27.4 26.8 28.9 33.3 35.0 37.2 39.5
Accumulated Deficit as a per cent of GDP 25.2 24.4 20.3 19.0 18.1 19.3 22.5 23.6 25.0 26.5

1 Revenue and expense have been restated to reflect a fiscally neutral accounting change for the revised presentation of education property taxes, as described in the 2010 Ontario Budget; and a fiscally neutral accounting change related to the reclassification of government agencies and organizations as described in the 2011 Ontario Economic Outlook and Fiscal Review. Starting in this Budget, revenue and expense have been restated to reflect a fiscally neutral reclassification of a number of tax expenditures as described in Section F of this chapter.
2 Starting in 2005–06, the Province’s financial reporting was expanded to include hospitals, school boards and colleges. Total expense prior to 2005–06 has not been restated to reflect expanded reporting.
3 Starting in 2009–10, investments in minor tangible capital assets owned by the Province were capitalized and amortized to expense. All capital assets owned by consolidated organizations are being accounted for in a similar manner.
4 Interest on debt is net of interest capitalized during construction of tangible capital assets of $148 million in 2009–10, $203 million in 2010–11, $227 million in 2011–12 and $248 million in 2012–13.
5 Starting in 2009–10, Net Debt includes the net debt of hospitals, school boards and colleges consistent with Public Sector Accounting Board standards. For comparative purposes, Net Debt has been restated from 2005–06 to 2008–09 to conform with this revised presentation. Net Debt has also been restated from 2003–04 to 2005–06 to reflect the value of hydro corridor lands transferred to the Province from Hydro One Inc.
Sources: Ontario Ministry of Finance and Statistics Canada.



Chart 26: Pie Graph: Composition of Revenue, 2012-13


Chart 27: Pie Graph: Composition of Total Expense, 2012-13


Chart 28: Pie Graph: Composition of Program Expense, 2012-13


Support from Gaming

Proceeds from gaming activities in Ontario continue to support Provincial priorities. The Ontario Lottery and Gaming Corporation Act, 1999 requires that net Provincial revenue generated from lotteries, Ontario Lottery and Gaming Corporation (OLG) operated casinos, slot facilities and commercial casinos support services such as the operation of hospitals, municipalities, amateur sports, Ontario First Nations, problem gambling and related programs, and funding for charitable and not-for-profit organizations.

TABLE 2.32 Support for Health Care, Charities, and Problem Gambling and Related Programs, Municipalities and Ontario First Nations
($ Millions)
  Interim
2011–12
Plan
2012–13
Revenue from Lotteries, OLG-Operated Casinos and Slot Facilities at Racetracks    
   Operation of Hospitals 1,542 1,496
   Ontario Trillium Foundation 120 120
   Problem Gambling and Related Programs 41 41
   Ontario Amateur Sports 10 10
Revenue from Commercial Casinos    
   General Government Priorities 90 70
Subtotal — Net Profit to Province 1,803 1,737
Support for Municipalities and Ontario First Nations1    
   Slots at Racetracks 345 340
   Municipalities 89 91
   Ontario First Nations 119 119
Total Support from Gaming 2,356 2,287

1 Operating expenses of the Ontario Lottery and Gaming Corporation (OLG) include payments to host municipalities and Ontario First Nations under the Gaming Revenue Sharing and Financial Agreement.
Note: Numbers may not add due to rounding.

An estimated $1,496 million in net revenue from lotteries, OLG-operated casinos and slot facilities at racetracks will be applied to support the operation of hospitals in 2012–13.

Host municipalities of OLG-operated casinos, slot facilities and commercial casinos receive a portion of gross slot-machine revenue or fixed payments respectively. For 2012–13, these payments are estimated at $91 million and will help offset local infrastructure and service costs.

The Quest for Gold lottery will provide an estimated $10 million in 2012–13 for financial support to Ontario’s high-performance amateur athletes.

Ontario First Nations receive 1.7 per cent of gross gaming revenues through the Gaming Revenue Sharing and Financial Agreement to invest in education, health, economic, community and social development. Since 2011–12, this agreement has provided approximately $119 million to First Nations in Ontario. For 2012–13, additional support is estimated at $119 million.

Approximately 20 per cent of gross revenue from slot machines at racetracks is used to support the horse racing industry. Since 1998, this initiative has provided over $3.7 billion to the horse racing industry in Ontario. For 2012–13, additional support is estimated at $340 million; it will then cease in 2013–14.

Two per cent of gross slot-machine revenue, estimated at $41 million for 2012–13, is allocated for problem gambling prevention, treatment and research programs.

In 2012–13, net Provincial revenue from commercial casinos, estimated at $70 million, will be used to support general government priorities, including health care, education and public infrastructure. In addition, commercial casino operations support approximately 10,000 direct jobs in Ontario and provide vital tourism and economic development attractions for their respective communities.