2013 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 2.22 Medium-Term Fiscal Plan and Outlook
($ Billions)
  Interim
2012–13
Plan
2013–14
Outlook
2014–15 2015–16
Revenue 114.2 116.8 120.5 124.9
Expense        
Programs 113.6 117.0 118.3 118.8
Interest on Debt1 10.4 10.6 11.1 12.2
Total Expense 124.0 127.6 129.5 131.0
Reserve 1.0 1.2 1.2
Surplus/(Deficit) (9.8) (11.7) (10.1) (7.2)
Net Debt 252.8 272.8 290.1 303.9
Accumulated Deficit 168.2 179.9 190.1 197.3
1 Interest on debt expense is net of interest capitalized during construction of tangible capital assets of $0.2 billion in 2012–13, $0.3 billion in 2013–14, $0.4 billion in 2014–15 and $0.4 billion in 2015–16.
Note: Numbers may not add due to rounding.


TABLE 2.23 Revenue
($ Millions)
  2010–11 Actual
2011–12
Interim
2012–13
Plan
2013–14
Taxation Revenue        
Personal Income Tax 23,711 24,548 26,147 27,578
Sales Tax1 18,813 20,159 21,107 21,856
Corporations Tax 9,067 9,944 11,993 11,269
Education Property Tax2 5,659 5,765 5,678 5,694
Employer Health Tax 4,733 5,092 5,184 5,318
Ontario Health Premium 2,934 2,916 3,093 3,226
Gasoline Tax 2,358 2,380 2,367 2,377
Land Transfer Tax 1,247 1,432 1,459 1,382
Tobacco Tax 1,160 1,150 1,143 1,123
Fuel Tax 702 710 707 719
Beer and Wine Tax 397 561 569 574
Electricity Payments-In-Lieu of Taxes 321 367 362 366
Other Taxes 562 574 475 493
  71,664 75,598 80,282 81,975
Government of Canada        
Canada Health Transfer 10,184 10,705 11,396 12,067
Canada Social Transfer 4,330 4,469 4,591 4,727
Equalization 972 2,200 3,261 3,169
Infrastructure Programs 1,712 362 138 145
Labour Market Programs 1,201 904 912 905
Social Housing 493 489 476 468
Wait Times Reduction Fund 97 97 97 97
Other Federal Payments 4,052 2,079 839 897
  23,041 21,305 21,710 22,475
Government Business Enterprises        
Ontario Lottery and Gaming Corporation 1,956 1,882 1,798 2,020
Liquor Control Board of Ontario 1,562 1,659 1,706 1,747
Ontario Power Generation Inc./Hydro One Inc. 1,048 872 968 712
  4,566 4,413 4,472 4,479
Other Non-Tax Revenue        
Reimbursements 1,036 831 948 973
Vehicle and Driver Registration Fees 1,080 1,075 1,163 1,273
Electricity Debt Retirement Charge 944 952 957 957
Power Supply Contract Recoveries 1,288 1,372 1,262 1,274
Sales and Rentals 1,015 1,193 1,124 1,075
Other Fees and Licences 715 776 761 821
Net Reduction of Power Purchase Contract Liability 339 317 263 243
Royalties 145 200 242 242
Miscellaneous Other Non-Tax Revenue3 1,342 1,741 1,039 1,058
  7,904 8,457 7,759 7,916
Total Revenue 107,175 109,773 114,223 116,845
1 Beginning July 1, 2010, most of the Retail Sales Tax was replaced with a value-added tax and combined with the federal Goods and Services Tax to create a federally administered Harmonized Sales Tax (HST). Sales Tax revenue is net of the Ontario Sales Tax Credit and the energy component of the Ontario Energy and Property Tax Credit.
2 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.
3 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 2.24 Total Expense
($ Millions)
Ministry Expense 2010–11 Actual
2011–12
Interim
2012–13
Plan
2013–14
Aboriginal Affairs1 65 67 66.2 64.7
Agriculture and Food / Rural Affairs1 895 1,038 1,028.7 1,034.5
Attorney General 1,594 1,705 1,698.2 1,751.3
Board of Internal Economy2 194 271 200.0 200.0
Children and Youth Services 3,882 3,943 4,007.2 4,160.9
Citizenship and Immigration 104 108 121.7 104.0
Community and Social Services 8,920 9,347 9,769.5 10,173.1
Community Safety and Correctional Services 2,216 2,171 2,294.7 2,326.1
Consumer Services 18 19 20.4 24.0
Economic Development, Trade and Employment / Research and Innovation1 876 973 972.9 911.0
Education1 21,871 22,944 23,548.4 24,147.0
Energy1 724 498 382.6 339.6
Environment 512 529 486.0 495.2
Executive Offices 32 31 30.2 30.8
Finance1 1,050 932 911.3 1,043.8
Francophone Affairs, Office of 5 5 5.2 5.0
Government Services1 1,030 1,105 1,150.7 1,064.4
Health and Long-Term Care 44,414 46,503 47,774.2 48,854.9
Infrastructure1 305 331 43.2 351.0
Labour 186 184 286.9 305.7
Municipal Affairs and Housing1 881 824 809.0 789.6
Natural Resources1 718 713 711.3 715.6
Northern Development and Mines 704 726 770.8 724.6
Tourism, Culture and Sport1 1,086 1,180 1,441.0 1,193.3
Training, Colleges and Universities1 6,704 7,121 7,363.5 7,664.7
Transportation 2,263 2,339 2,533.9 2,767.1
Interest on Debt3 9,480 10,082 10,372.0 10,605.0
Other Expense1 10,457 7,053 5,206.0 6,741.2
Year-End Savings4 (1,000.0)
Total Expense 121,186 122,742 124,005.5 127,588.1
1 Details on other ministry expense can be found in Table 2.25, Other Expense.
2 The 2011–12 amount includes expenses for the 2011 general election.
3 Interest on debt is net of interest capitalized during construction of tangible capital assets of $203 million in 2010–11, $234 million in 2011–12, $241 million in 2012–13 and $271 million in 2013–14.
4 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 2.25 Other Expense
($ Millions)
Ministry Expense 2010–11 Actual
2011–12
Interim
2012–13
Plan
2013–14
Aboriginal Affairs        
One-Time Investments — Settlements 6 28 0.0
Agriculture and Food / Rural Affairs        
Time-Limited Investments in Infrastructure 1,496 247 18.6 7.0
Time-Limited Assistance 9 10.0
Economic Development, Trade and Employment / Research and Innovation        
Time-Limited Investments for Youth 50.0
Education        
One-Time Savings —Labour Savings (1,133.0)
Teachers' Pension Plan1 522 523 895.0 939.0
Energy        
Ontario Clean Energy Benefit 300 1,033 1,029.4 1,040.0
Environment        
Time-Limited Investments 77.8
Finance        
Harmonized Sales Tax Transitional Support 3,039 1,440
Ontario Municipal Partnership Fund 684 598 592.2 568.9
Operating Contingency Fund 50.0 500.0
Power Supply Contract Costs 1,288 1,375 1,262.0 1,274.0
Transition Fund 225.0 150.0
Government Services        
Pension and Other Employee Future Benefits 1,182 1,300 1,540.0 1,516.0
Infrastructure        
Capital Contingency Fund 100.0
Municipal Affairs and Housing        
Time-Limited Investments in Municipal Social and Affordable Housing 668 59 157.8 155.2
Time-Limited Investments 21 9 42.4 3.0
Natural Resources        
Emergency Forest Firefighting 100 209 157.6 70.7
Tourism, Culture and Sport        
Time-Limited Investments—Sport Program 288 37
One-Time Investments 22 3
Time-Limited Investments to Support Pan/Parapan Am Games 16 59 281.2 289.4
Training, Colleges and Universities        
Time-Limited Investments 816 133 78.0
Total Other Expense 10,457 7,053 5,206.0 6,741.2
1 Numbers reflect PSAB pension expense. Ontario's matching contributions to the plan grow from $1,316 million in 2010–11 to $1,452 million in 2013–14.
Note: Numbers may not add due to rounding.


TABLE 2.26 2013–14 Infrastructure Expenditures
($ Millions)
Sector Total Infrastructure Expenditures
2012–13 Interim
2013–14 Plan
Investment in Capital Assets1 Transfers and Other Infrastructure Expenditures2 Total Infrastructure Expenditures
Transportation        
Transit 2,545 2,892 485 3,377
Provincial Highways 2,130 2,228 2,228
Other Transportation3 699 618 82 699
Health        
Hospitals 2,806 2,672 205 2,877
Other Health 314 139 166 305
Education 2,074 1,938 65 2,003
Postsecondary        
Colleges 375 413 1 414
Universities 112 155 155
Water/Environment 256 46 102 149
Municipal and Local Infrastructure 609 297 456 753
Justice 775 300 93 393
Other 509 986 199 1,185
Subtotal 13,203 12,529 2,008 14,537
Less: Other Partner Funding4 1,326 1,040 1,040
Total Excluding Partner Funding 11,877 11,489 2,008 13,498
Less: Other Capital Contributions5 516 373 115 488
Total Provincial Expenditure6 11,361 11,116 1,893 13,010
1 Investment in Capital Assets includes interest capitalized during construction of tangible capital assets of $271 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., winter roads, remote airports).
4 Third-party contributions to capital investment in consolidated schools, colleges, hospitals and provincial agencies.
5 Mostly federal government transfers for capital investments. The 2012–13 amount includes $135 million to reflect federal contributions for prior years' investments in the Rt. Hon. Herb Gray (formerly Windsor-Essex) Parkway.
6 Total Provincial Infrastructure Expenditure includes Investment in Capital Assets of $9.6 billion for 2012–13.
Note: Numbers may not add due to rounding.


TABLE 2.27 Ten-Year Review of Selected Financial and Economic Statistics1
($ Millions)
  2004–05 2005–062 2006–07 2007–08 2008–09 2009–103 2010–11 Actual
2011–12
Interim
2012–13
Plan
2013–14
Revenue 84,192 90,738 97,120 104,115 97,532 96,313 107,175 109,773 114,223 116,845
Expense                    
Programs 76,379 81,421 86,020 94,601 95,375 106,856 111,706 112,660 113,633 116,983
Interest on Debt4 9,368 9,019 8,831 8,914 8,566 8,719 9,480 10,082 10,372 10,605
Total Expense 85,747 90,440 94,851 103,515 103,941 115,575 121,186 122,742 124,005 127,588
Reserve 1,000
Surplus/(Deficit) (1,555) 298 2,269 600 (6,409) (19,262) (14,011) (12,969) (9,782) (11,743)
Net Debt5 140,921 152,702 153,742 156,616 169,585 193,589 214,511 235,582 252,790 272,810
Accumulated Deficit 125,743 109,155 106,776 105,617 113,238 130,957 144,573 158,410 168,192 179,935
Gross Domestic Product (GDP) at Market Prices6 529,576 551,819 574,303 597,912 604,164 593,916 625,045 654,561 673,355 693,762
Primary Household Income6 347,617 363,623 383,803 401,295 412,183 410,562 424,170 438,093 450,051 462,576
Population —July (000s) 12,391 12,528 12,665 12,791 12,932 13,069 13,224 13,366 13,506 13,690
Net Debt per Capita (dollars) 11,373 12,188 12,139 12,244 13,113 14,813 16,222 17,625 18,717 19,928
Household Income per Capita (dollars)6 28,055 29,024 30,303 31,373 31,872 31,415 32,076 32,776 33,323 33,789
Interest on Debt as a per cent of Revenue 11.1 9.9 9.1 8.6 8.8 9.1 8.8 9.2 9.1 9.1
Net Debt as a per cent of GDP6 26.6 27.7 26.8 26.2 28.1 32.6 34.3 36.0 37.5 39.3
Accumulated Deficit as a per cent of GDP6 23.7 19.8 18.6 17.7 18.7 22.0 23.1 24.2 25.0 25.9
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; 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;and a fiscally neutral reclassification of a number of tax measures that are transfers or grants, as described in the 2012 Ontario Budget.
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 $203 million in 2010–11, $234 million in 2011–12, $241 million in 2012–13 and $271 million in 2013–14.
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 in 2004–05 and 2005–06 to reflect the value of hydro corridor lands transferred to the Province from Hydro One Inc.
6 Gross Domestic Product and Household Income amounts from 2007 to 2012 are based on Statistics Canada's new, revised standard for economic accounts – the CSNA 2012 (Canadian System of National Accounts), which includes conceptual, classification and methodological improvements. GDP and Household Income amounts prior to 2007 are Ontario Ministry of Finance estimates.
Sources: Statistics Canada and Ontario Ministry of Finance.
Chart 2.25: Composition of Revenue, 2013-14. Click for an accessible full description.
Chart 2.26: Composition of Total Expense, 2013-14. Click for an accessible full description.
Chart 2.27: Composition of Program Expense, 2013-14. Click for an accessible full description.

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 2.28 Support for Health Care, Charities, Problem Gambling and Related Programs, Municipalities and Ontario First Nations
($ Millions)
  Interim
2012–13
Plan
2013–14
Revenue from Lotteries, OLG-Operated Casinos and Slot Facilities at Racetracks    
Operation of Hospitals 1,484 1,692
Ontario Trillium Foundation 120 115
Problem Gambling and Related Programs 39 41
Ontario Amateur Sports 10 10
Revenue from Commercial Casinos    
General Government Priorities 145 162
Subtotal — Net Profit to Province 1,798 2,020
Support for Municipalities and Ontario First Nations1    
Slots at Racetracks2 318
Municipalities 87 92
Ontario First Nations 120 121
Total Support from Gaming 2,323 2,233
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.
2 Slots at Racetracks Program ended on March 31, 2013.
Note: Numbers may not add due to rounding.

An estimated $1,692 million in net revenue from lotteries, OLG-operated casinos and slot facilities at racetracks will be applied to support the operation of hospitals in 2013–14.

Host municipalities of OLG-operated casinos, slot facilities and commercial casinos receive a portion of slot-machine revenue or fixed payments respectively. For 2013–14, these payments are estimated at $92 million and will help offset local infrastructure and service costs.

The Quest for Gold lottery will provide an estimated $10 million in 2013–14 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 $239 million to First Nations in Ontario. For 2013–14, additional support is estimated at $121 million.

Two per cent of gross slot-machine revenue, estimated at $41 million for 2013–14, is allocated for problem gambling prevention, treatment and research programs.

In 2013–14, net Provincial revenue from commercial casinos, estimated at $162 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.

Chart Descriptions

Chart 2.25: Composition of Revenue, 2013–14

This chart shows the share of total revenues in 2013–14 and dollar amounts by major revenue category.

The largest revenue source is Personal Income Tax revenue at $27.6 billion, accounting for 23.6 per cent of total revenue.

This is followed by Sales Tax at $21.9 billion, or 18.7 per cent of total revenue, and Corporations Tax at $11.3 billion, or 9.6 per cent of total revenue.

Tax revenues in total account for $82.0 billion, or 70.2 per cent of total revenues.

The other major non-taxation sources of revenue are Federal Transfers at $22.5 billion or 19.2 per cent of total revenue, Income from Government Business Enterprises at $4.5 billion or 3.8 per cent of total revenue, and Other Non-Tax Revenues at $7.9 billion or 6.8 per cent of total revenue.

Return to Chart 2.25

Chart 2.26: Composition of Total Expense, 2013–14

This chart shows the share of total expense in 2013–14 and dollar amounts by sector. The largest expense is the Health Sector at $48.9 billion, accounting for 38.3 per cent of total expense. The remaining sectors of total expense include the Education Sector at $24.1 billion or 18.9 per cent; the Postsecondary and Training Sector at $7.7 billion or 6.1 per cent; the Children’s and Social Services Sector at $14.3 billion or 11.2 per cent; the Justice Sector at $4.1 billion or 3.2 per cent; and Other Programs at $17.8 billion or 14.0 per cent. Interest on Debt, included as part of Total Expense, is $10.6 billion or 8.3 per cent. Note that the Education Sector excludes Teachers’ Pension Plan. Teachers’ Pension Plan expense is included in Other Programs.

Return to Chart 2.26

Chart 2.27: Composition of Program Expense, 2013–14

This chart shows the share of program expense in 2013–14 and dollar amounts by sector. Program expense equals total expense minus interest on debt.

The largest expense is the Health Sector at $48.9 billion, accounting for 41.8 per cent of total expense.

The remaining sectors of program expense include the Education Sector at $24.1 billion or 20.6 per cent; the Postsecondary and Training Sector at $7.7 billion or 6.6 per cent; the Children’s and Social Services Sector at $14.3 billion or 12.3 per cent; the Justice Sector at $4.1 billion or 3.5 per cent; and Other Programs at $17.8 billion or 15.2 per cent.

Note that the Education Sector excludes Teachers’ Pension Plan. Teachers’ Pension Plan expense is included in Other Programs.

Return to Chart 2.27