2014 Ontario Budget
Chapter II: Ontario's Economic Outlook and Fiscal Plan

Section F: 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 of Ontario’s fiscal plan and outlook.

TABLE 2.23 Medium-Term Fiscal Plan and Outlook
($ Billions)
  Interim
2013–14
Plan
2014–15
Outlook
2015–16 2016–17
Revenue 115.7 118.9 124.5 129.4
Expense        
Programs 116.4 119.4 120.1 120.2
Interest on Debt1 10.6 11.0 12.0 13.3
Total Expense 127.0 130.4 132.1 133.5
Surplus/(Deficit) Before Reserve (11.3) (11.5) (7.7) (4.1)
Reserve 1.0 1.2 1.2
Surplus/(Deficit) (11.3) (12.5) (8.9) (5.3)
Net Debt 269.2 289.3 305.3 317.2
Accumulated Deficit 177.3 189.8 198.6 204.0
1 Interest on debt expense is net of interest capitalized during construction of tangible capital assets of $0.2 billion in 2013–14, $0.3 billion in 2014–15, $0.3 billion in 2015–16 and $0.4 billion in 2016–17.
Note: Numbers may not add due to rounding.
TABLE 2.24 Revenue
($ Millions)
  2011–12 Actual
2012–13
Interim
2013–14
Plan
2014–15
Taxation Revenue        
Personal Income Tax 24,548 25,574 27,512 29,172
Sales Tax1 20,159 20,957 20,381 21,937
Corporations Tax 9,944 12,093 11,369 10,254
Education Property Tax2 5,765 5,511 5,531 5,661
Employer Health Tax 5,092 5,137 5,343 5,551
Ontario Health Premium 2,916 3,067 3,178 3,321
Gasoline Tax 2,380 2,390 2,365 2,395
Land Transfer Tax 1,432 1,484 1,604 1,604
Tobacco Tax 1,150 1,142 1,111 1,300
Fuel Tax 710 710 726 734
Beer and Wine Tax 561 560 556 572
Electricity Payments-In-Lieu of Taxes 367 324 397 329
Other Taxes 574 469 381 536
  75,598 79,418 80,454 83,365
Government of Canada        
Canada Health Transfer 10,705 11,315 11,930 12,350
Canada Social Transfer 4,469 4,591 4,689 4,841
Equalization 2,200 3,261 3,169 1,988
Infrastructure Programs 362 116 128 296
Labour Market Programs 904 897 909 902
Social Housing 489 483 468 458
Wait Times Reduction Fund 97 97 96
Other Federal Payments 2,079 901 851 1,047
  21,305 21,661 22,240 21,882
Government Business Enterprises        
Ontario Lottery and Gaming Corporation 1,882 1,816 2,038 2,053
Liquor Control Board of Ontario 1,659 1,721 1,745 1,779
Ontario Power Generation Inc./Hydro One Inc. 872 932 968 1,194
  4,413 4,469 4,751 5,026
Other Non-Tax Revenue        
Reimbursements 831 932 966 996
Vehicle and Driver Registration Fees 1,075 1,125 1,273 1,442
Electricity Debt Retirement Charge 952 939 941 940
Power Supply Contract Recoveries 1,372 1,323 1,348 959
Sales and Rentals 1,193 1,188 1,123 2,058
Other Fees and Licences 776 760 776 795
Net Reduction of Power Purchase Contract Liability 317 263 243 217
Royalties 200 226 247 274
Miscellaneous Other Non-Tax Revenue3 1,741 1,065 1,291 917
  8,457 7,821 8,208 8,598
Total Revenue 109,773 113,369 115,653 118,871
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 2.25 Total Expense
($ Millions)
Ministry Expense 2011–12 Actual
2012–13
Interim
2013–14
Plan
2014–15
Aboriginal Affairs1 67 65 63.4 70.7
Agriculture and Food / Rural Affairs1 1,038 1,016 854.3 1,137.40
Attorney General 1,705 1,683 1,829.5 1,774.2
Board of Internal Economy2 271 197 204.3 204.8
Children and Youth Services 3,855 3,912 4,023.0 4,222.0
Citizenship and Immigration 130 130 116.7 120.7
Community and Social Services 9,347 9,720 10,062.6 10,791.0
Community Safety and Correctional Services1 2,170 2,280 2,347.3 2,433.9
Consumer Services 19 20 22.5 25.2
Economic Development, Trade and Employment / Research and Innovation1 973 963 871.5 1,011.9
Education1 23,041 23,141 23,845.7 24,839.9
Energy1 498 341 319.9 332.8
Environment1 524 485 480.6 490.2
Executive Offices 31 30 30.8 32.8
Finance1 933 849 947.2 1,015.4
Francophone Affairs, Office of3 5 5 4.8 4.1
Government Services1 1,104 1,143 878.9 1,028.8
Health and Long-Term Care 46,491 47,571 48,766.7 50,054.8
Infrastructure1 331 66 282.2 279.6
Labour 184 281 304.8 311.2
Municipal Affairs and Housing1 823 825 837.3 879.6
Natural Resources1 719 694 715.0 713.2
Northern Development and Mines 726 718 757.6 754.3
Tourism, Culture and Sport1 1,170 1,424 1,333.5 1,235.7
Training, Colleges and Universities1 7,113 7,346 7,604.7 7,838.8
Transportation 2,339 2,478 2,774.3 3,024.9
Interest on Debt4 10,082 10,341 10,556.0 11,010.0
Other Expense1 7,054 4,863 6,117.1 6,088.2
Program Review Savings Target5 (250.0)
Year-End Savings6 (1,100.0)
Total Expense 122,742 122,589 126,952.3 130,376.0
1 Details on other ministry expense can be found in Table 2.26, Other Expense.
2 The 2011–12 amount includes expenses for the 2011 general election.
3 Reduction beginning in 2013–14 reflects that, effective January 1, 2014, the office of the French Language Services Commissioner is part of the Board of Internal Economy.
4 Interest on debt is net of interest capitalized during construction of tangible capital assets of $234 million in 2011–12, $232 million in 2012–13, $225 million in 2013–14 and $336 million in 2014–15.
5 For details on the program review savings target, see Chapter l, Section E: Making Every Dollar Count.
6 As in past years, the Year-End Savings provision reflects anticipated underspending that has historically arisen at year-end due to factors such as program efficiencies, and changes in project startups and implementation plans.
Note: Numbers may not add due to rounding.
TABLE 2.26 Other Expense
($ Millions)
Ministry Expense 2011–12 Actual
2012–13
Interim
2013–14
Plan
2014–15
Aboriginal Affairs        
One-Time Investments including Settlements 28 12.0
Agriculture and Food / Rural Affairs        
Time-Limited Investments in Infrastructure 247 19 136.3 47.1
Time-Limited Assistance 16.5 6.5
Community Safety and Correctional Services        
Time-Limited Support for 2015 Pan/Parapan American Games Security 1 1 6.0 44.9
Economic Development, Trade and Employment / Research and Innovation        
Time-Limited Investments for Youth 50.0 50.0
Education        
Teachers' Pension Plan1 523 895 873.0 507.0
One-Time Savings — Labour Savings (1,296)
Energy        
Ontario Clean Energy Benefit 1,033 994 1,020.0 1,100.0
Environment        
Time-Limited Investments 78
Finance        
Harmonized Sales Tax Transitional Support 1,440
Ontario Municipal Partnership Fund 598 592 568.9 541.5
Operating Contingency Fund 250.0 415.0
Power Supply Contract Costs 1,375 1,323 1,348.4 959.1
Transition Fund 80.0
Government Services        
Pension and Other Employee Future Benefits 1,300 1,519 1,283.0 1,170.0
Infrastructure        
Federal-Provincial Infrastructure Programs 241.7
Capital Contingency Fund 100.0
Municipal Affairs and Housing        
Time-Limited Investments in Municipal Social and Affordable Housing 59 158 155.2 155.2
Time-Limited Investments 9 42 18.9
Natural Resources        
Emergency Forest Firefighting 209 180 93.7 70.1
Tourism, Culture and Sport        
Time-Limited Investments—Sport Program 37
One-Time Investments 3
Time-Limited Investments to Support 2015 Pan/Parapan American Games 59 358 285.2 600.1
Training, Colleges and Universities        
Time-Limited Investments 133
Total Other Expense 7,054 4,863 6,117.1 6,088.2
1 Numbers reflect Public Sector Accounting Board pension expense. Ontario's matching contributions to the plan grow from $1,344 million in 2011–12 to $1,532 million in 2014–15.
Note: Numbers may not add due to rounding.
TABLE 2.27 2013–14 Infrastructure Expenditures
($ Millions)
Sector Total Infrastructure
Expenditures 2013–14
Interim
2014–15 Plan
Investment in
Capital Assets1
Transfers and Other
Infrastructure
Expenditures2
Total
Infrastructure
Expenditures
Transportation        
Transit 2,726 2,630 519 3,150
Provincial Highways 2,052 2,472 2,472
Other Transportation3 698 750 95 845
Health        
Hospitals 3,157 3,341 287 3,629
Other Health 480 206 203 409
Education 1,884 1,724 58 1,781
Postsecondary        
Colleges 391 368 368
Universities 155 168 168
Water/Environment 135 57 96 153
Municipal and Local Infrastructure 693 8 643 651
Justice 319 129 125 254
Other 391 481 132 613
Subtotal 13,083 12,167 2,326 14,493
Less: Other Partner Funding4 1,893 1,666 1,666
Total Excluding Partner Funding 11,190 10,500 2,326 12,826
Less: Other Capital Contributions5 376 284 262 546
Total Provincial Expenditure6 10,814 10,216 2,064 12,280
1 Investment in Capital Assets includes interest capitalized during construction of tangible capital assets of $336 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.
6 Total Provincial Infrastructure Expenditure includes Investment in Capital Assets of $9 billion for 2013–14.
Note: Numbers may not add due to rounding.
TABLE 2.28 Ten-Year Review of Selected Financial and Economic Statistics1
($ Millions)
  2005–06 2006–07 2007–08
Revenue 90,738 97,120 104,115
Expense      
Programs 81,421 86,020 94,601
Interest on Debt3 9,019 8,831 8,914
Total Expense 90,440 94,851 103,515
Surplus/(Deficit) Before Reserve 298 2,269 600
Reserve
Surplus/(Deficit) 298 2,269 600
Net Debt4 152,702 153,742 156,616
Accumulated Deficit 109,155 106,776 105,617
Gross Domestic Product (GDP) at Market Prices 552,769 574,292 597,803
Primary Household Income 363,479 382,688 401,978
Population — July (000s) 12,528 12,662 12,764
Net Debt per Capita (dollars) 12,189 12,142 12,270
Household Income per Capita (dollars) 29,013 30,224 31,493
Interest on Debt as a per cent of Revenue 9.9 9.1 8.6
Net Debt as a per cent of GDP 27.6 26.8 26.2
Accumulated Deficit as a per cent of GDP 19.7 18.6 17.7
TABLE 2.28 Ten-Year Review of Selected Financial and Economic Statistics
($ Millions) Continued
Revenue 2008–09 2009–102 2010–11 2011–12 Actual
2012–13
Interim
2013–14
Plan
2014–15
97,532 96,313 107,175 109,773 113,369 115,653 118,871
Expense              
Programs 95,375 106,856 111,706 112,660 112,248 116,396 119,366
Interest on Debt3 8,566 8,719 9,480 10,082 10,341 10,556 11,010
Total Expense 103,941 115,575 121,186 122,742 122,589 126,952 130,376
Surplus/(Deficit) Before Reserve (6,409) (19,262) (14,011) (12,969) (9,220) (11,300) (11,505)
Reserve 1,000
Surplus/(Deficit) (6,409) (19,262) (14,011) (12,969) (9,220) (11,300) (12,505)
Net Debt4 169,585 193,589 214,511 235,582 252,088 269,155 289,251
Accumulated Deficit 113,238 130,957 144,573 158,410 167,132 177,260 189,765
Gross Domestic Product (GDP) at Market Prices 604,282 595,433 629,500 654,715 674,485 692,418 716,933
Primary Household Income 413,032 413,152 425,140 443,501 458,683 472,122 487,720
Population — July (000s) 12,883 12,998 13,135 13,264 13,412 13,538 13,762
Net Debt per Capita (dollars) 13,164 14,894 16,331 17,762 18,796 19,881 21,019
Household Income per Capita (dollars) 32,061 31,787 32,367 33,438 34,199 34,874 35,441
Interest on Debt as a per cent of Revenue 8.8 9.1 8.8 9.2 9.1 9.1 9.3
Net Debt as a per cent of GDP 28.1 32.5 34.1 36.0 37.4 38.9 40.3
Accumulated Deficit as a per cent of GDP 18.7 22.0 23.0 24.2 24.8 25.6 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; 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 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.
3 Interest on debt is net of interest capitalized during construction of tangible capital assets of $234 million in 2011–12, $232 million in 2012–13, $225 million in 2013–14 and $336 million in 2014–15.
4 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 2005–06 to reflect the value of hydro corridor lands transferred to the Province from Hydro One Inc.
Sources: Statistics Canada and Ontario Ministry of Finance.


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 and slots and commercial casinos support services such as the operation of hospitals, municipalities, amateur sports, Ontario First Nations, problem gambling prevention, treatment and research, and funding for charitable and not-for-profit organizations.

TABLE 2.29 Support for Health Care, Charities, Problem Gambling and Related Programs, Municipalities and Ontario First Nations
($ Millions)
  Interim
2013–14
Plan
2014–15
Revenue for Provincial Purposes    
Operation of Hospitals 1,754 1,771
Ontario Trillium Foundation 115 115
Problem Gambling Prevention, Treatment and Research 39 39
Ontario Amateur Sports 10 10
General Government Priorities, including Horseracing Support 119 118
Subtotal — Net Profit to Province from OLG 2,038 2,053
Support for Municipalities and Ontario First Nations1    
Municipalities 116 115
Ontario First Nations 120 123
Total Support from Gaming 2,274 2,291
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.

Chart Descriptions

Chart 2.26: Composition of Revenue, 2014–15

This chart shows the share of total revenue in 2014–15 and dollar amounts by major revenue category. The largest revenue source is Personal Income Tax revenue at $29.2 billion, accounting for 24.5 per cent of total revenue. This is followed by Sales Tax at $21.9 billion, or 18.5 per cent of total revenue, and Corporations Tax at $10.3 billion, or 8.6 per cent of total revenue. Total tax revenue accounts for $83.4 billion, or 70.1 per cent of total revenue. The other major non-taxation sources of revenue are Federal Transfers of $21.9 billion, or 18.4 per cent of total revenue. Income from Government Business Enterprises at $5.0 billion or 4.2 per cent of total revenue and various Other Non-Tax Revenues at $8.6 billion or 7.2 per cent of total revenue.

Return to Chart 2.26

Chart 2.27: Composition of Total Expense, 2014–15

This chart shows the share of total expense in 2014–15 and dollar amounts by sector.

The largest expense is the Health Sector at $50.1 billion, accounting for 38.4 per cent of total expense.

The remaining sectors of total expense include the Education Sector at $24.8 billion or 19.1 per cent; the Postsecondary and Training Sector at $7.8 billion or 6.0 per cent; the Children’s and Social Services Sector at $15.0 billion or 11.5 per cent; the Justice Sector at $4.3 billion or 3.3 per cent; and Other Programs at $17.4 billion or 13.3 per cent. Interest on Debt, included as part of Total Expense, is $11.0 billion or 8.4 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

Chart 2.28: Composition of Program Expense, 2014–15

This chart shows the share of program expense in 2014–15 and dollar amounts by sector. Program expense equals total expense minus interest on debt expense.

The largest expense is the Health Sector at $50.1 billion, accounting for 41.9 per cent of total program expense.

The remaining sectors of program expense include the Education Sector at $24.8 billion or 20.8 per cent; the Postsecondary and Training Sector at $7.8 billion or 6.6 per cent; the Children’s and Social Services Sector at $15.0 billion or 12.6 per cent; the Justice Sector at $4.3 billion or 3.6 per cent; and Other Programs at $17.4 billion or 14.5 per cent.

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

Return to Chart 2.28