2006 Ontario Economic Outlook and Fiscal Review
Annex VII
Details of Ontario's Finances
Section I: Potential Expense Risks, Cost Drivers and Contingent Liabilities
Expense Risks and Sensitivities
Compensation Costs
Contingent Liabilities
Section II: Fiscal Tables and Graphs
Section I: Potential Expense Risks, Cost Drivers and Contingent Liabilities
Expense Risks and Sensitivities
Containing the rate of growth in the Province's medium-term expense plan is a key element of Ontario's fiscal plan. However, a number of expense risks and cost drivers could affect the Province's fiscal performance over the medium term.
A key cost driver within Ontario's expense outlook is the demand for programs and services that arises from changes in the economic outlook or other utilization pressures. These pressures are especially evident in the health and social services sectors.
Under the enhanced reporting introduced in the 2006 Budget, the net expenses of the Province's hospitals, school boards and colleges are included with the Province's total expense. Therefore any variance on these consolidated expenses will impact the Province's bottom line.
The following sensitivities are based on averages for program areas and could change, depending on the nature and composition of the potential risk.
Key sensitivities and risks to the Province's revenue outlook that could follow from unexpected changes in economic conditions are described in Annex I, Ontario's Economic and Revenue Outlook.
| Program/Sector | 2006–07 Assumption | 2006–07 Sensitivities |
|---|---|---|
| Health Sector | Annual growth of 8.2 per cent. | One per cent change in health spending: $355 million. |
| Hospitals | Annual growth of 11.1 per cent. | One per cent change in hospital net expense: $165 million. |
| Drug Utilization | Annual growth of 10 per cent. | One per cent change in utilization of all drug programs: $35 million (seniors and social assistance recipients). |
| Long-Term Care Homes | 75,500 long-term care home beds. | Annual average Provincial operating cost per bed, after resident co-payment revenue, in a long-term care home is $38,000. One per cent change in number of beds: $28 million. |
| Home Care | Over 17 million hours of homemaking and support services; | One per cent change in hours of homemaking and support services: $4 million. |
| Nine million nursing and health professional visits. | One per cent change in nursing and professional visits: $6 million. | |
| Elementary and Secondary Schools | Almost two million average daily pupil enrolment. | One per cent enrolment change: $160 million in school boards' net expense. |
| University Students | 327,000 full-time undergraduate and graduate students. | One per cent enrolment change: $26 million. |
| Ontario Works 1 | 199,000 average annual caseload. | One per cent caseload change: $17 million. |
| Ontario Disability Support Program 1 | 212,000 average annual caseload. | One per cent caseload change: $24 million. |
| College Students | 151,000 full-time students. | One per cent enrolment change: $7 million in colleges' net expense. |
| Interest on Debt | Average cost of borrowing is forecast to be approximately 5.1 per cent. | The impact of a 100 basis-point change in borrowing rates is forecast to be approximately $250 million. |
| Correctional System | Three million adult inmate days per year. | Average cost $160 per inmate per day. One per cent change in inmate days: $5 million. |
Compensation Costs
Compensation costs and wage settlements are key cost drivers and have a substantial impact on the finances of both the broader public-sector partners and the Province.
| Program/Sector | Cost of 1% Salary Increase | Size of Sector |
|---|---|---|
| OHIP Payments to Physicians 1 | $76 million | Just over 22,000 physicians in Ontario including approximately 10,900 family doctors and 11,335 specialists. |
| Hospital Nurses 2 | $44 million | Over 53,000 full-time equivalent (FTE) nurses in hospitals. |
| Elementary and Secondary School Staff 3 | $140 million | Over 195,000 staff including teachers, principals, administrators, and support and maintenance staff. |
| College Staff 2 | $12 million | Almost 35,000 staff including faculty, administrators, and support and maintenance staff. |
| Ontario Public Service 4 | $52 million | Over 64,000 public servants. |
1 Based on 2006-07 outlook.
2 Based on 2005-06 actuals.
3 One per cent increase in salary benchmarks in Grants for Student Needs based on 2006-07 school year.
4 Based on 2005-06, reflects total compensation costs.
Contingent Liabilities
In addition to the key demand sensitivities and economic risks to the fiscal plan, there are additional risks stemming from the government's contingent liabilities. Whether these contingencies will result in actual liabilities for the Province is beyond the direct control of the government. Losses could result from legal settlements, defaults on projects, and loan and funding guarantees. Provisions for losses that are likely to occur and can be reasonably estimated are expensed and reported as liabilities in the Province's financial statements. Significant contingent liabilities are described as follows.
Ontario Nuclear Funds Agreement
The Province has certain responsibilities with respect to nuclear used fuel waste management and nuclear station decommissioning. The Province, Ontario Power Generation Inc. (OPG), a wholly owned subsidiary, and certain subsidiaries of OPG are parties to the Ontario Nuclear Funds Agreement (ONFA), to establish, fund and manage segregated funds to ensure sufficient funds are available to pay the costs of nuclear station decommissioning and nuclear used fuel waste management. Under ONFA, the Province is liable to make payments should the cost estimate for nuclear used fuel waste management rise above specified thresholds for a fixed volume of used fuel. As well, under ONFA, the Province guarantees a return of 3.25 per cent over the Ontario consumer price index for the nuclear used fuel waste management fund. Ontario has also provided a direct Provincial guarantee to the Canadian Nuclear Safety Commission on behalf of OPG for up to $1.5 billion, which relates to the portion of the decommissioning and waste management obligations not funded by the segregated funds.
Obligations Guaranteed by the Province
Ontario provides guarantees on loans on behalf of various parties. The authorized limit for loans guaranteed by the Province as at March 31, 2006, was $3.8 billion. The outstanding loans guaranteed and other contingencies amounted to $3.3 billion at March 31, 2006. A provision of $504 million based on an estimate of the likely loss arising from guarantees under the Student Support Programs has been reflected in the 2005-06 Consolidated Financial Statements of the Province.
Social Housing — Loan Insurance Agreements
The Province is liable to indemnify and reimburse the Canada Mortgage and Housing Corporation for any net costs, including any environmental liabilities incurred as a result of project defaults, for all non-profit housing projects in the Provincial portfolio. At March 31, 2006, there were $8.6 billion of mortgage loans outstanding.
Claims Against the Crown
There are claims outstanding against the Crown arising from legal action, either in progress or threatened, in respect of aboriginal land claims, breach of contract, damages to persons and property, and like items. At March 31, 2006, there were 94 claims outstanding against the Crown that were for amounts over $50 million.
Canadian Blood Services
The provincial and territorial governments of Canada have entered into a Canadian Blood Services Excess Insurance Captive Support Agreement (the "Captive Support Agreement") with Canadian Blood Services (CBS) and Canadian Blood Services Captive Insurance Company Limited (CBSI), a wholly owned subsidiary of CBS established under the laws of British Columbia. Under the Captive Support Agreement, each government indemnifies CBSI for its pro rata share of any payments that CBSI becomes obliged to make under a comprehensive blood risks insurance policy it provides to CBS. The policy has an overall limit of $750 million, which may cover settlements, judgments and defence costs. The policy is in excess of, and secondary to, a $250 million comprehensive insurance policy underwritten by CBS Insurance Company Limited, a subsidiary of CBS domiciled in Bermuda. Given current populations, Ontario's maximum potential liability under the Captive Support Agreement is approximately $376 million. The Province is not aware of any proceedings that could lead to a claim against it under the Captive Support Agreement.
Section II: Fiscal Tables and Graphs
The following pages provide details on Ontario's finances — both historical and projections over the medium term.
Key tables consist of:
- Medium-term Fiscal Plan and Outlook (2005-06 to 2008-09)
- 2006-07 Fiscal Outlook - In-year Change
- Details of Provincial Revenue (2002-03 to 2006-07)
- Details of Provincial Total Expense, by Ministry (2002-03 to 2006-07)
- Details of Infrastructure Expenditures (2005-06 to 2006-07)
- Ten-Year Review of Selected Financial and Economic Statistics (1997-98 to 2006-07).
Key graphs consist of:
- Composition of Revenue (2006-07)
- Composition of Total Expense (2006-07)
- Composition of Program Expense (2006-07).
| Actual 1 2005-2006 |
Outlook 2 | |||
|---|---|---|---|---|
| 2006–07 | 2007–08 | 2008–09 | ||
| Revenue | 84.2 | 87.0 | 90.0 | 93.2 |
| Expense | ||||
| Programs | 74.9 | 78.8 | 81.2 | 83.1 |
| Interest on Debt | 9.0 | 9.2 | 9.5 | 9.6 |
| Total Expense | 83.9 | 88.0 | 90.8 | 92.7 |
| Surplus/(Deficit) Before Reserve | 0.3 | (0.9) | (0.7) | 0.5 |
| Reserve | – | 1.0 | 1.5 | 1.5 |
| Surplus/(Deficit) | 0.3 | (1.9) | (2.2) | (1.0) |
| Investment in Capital Assets | 2.0 | 2.6 | 2.7 | 2.7 |
| Net Debt 3 | 141.9 | 145.3 | 149.1 | 151.5 |
| Accumulated Deficit 3 | 109.2 | 111.1 | 113.3 | 114.4 |
| Gross Domestic Product (GDP) at Market Prices | 538.4 | 554.5 | 574.8 | 601.6 |
| Net Debt as a per cent of GDP | 26.4 | 26.2 | 25.9 | 25.2 |
| Accumulated Deficit as a per cent of GDP | 20.3 | 20.0 | 19.7 | 19.0 |
1 Starting in 2005-06, the Province's financial reporting was expanded to include hospitals, school boards and colleges using one-line consolidation.
2 Second-quarter fiscal forecast as at September 30, 2006.
3 Net Debt is calculated as the difference between liabilities and financial assets. The annual change in Net Debt is equal to the Surplus/Deficit of the Province plus the change in tangible capital assets and the change in net assets of hospitals, school boards and colleges. Accumulated Deficit is calculated as the difference between liabilities and total assets including tangible capital assets and net assets of hospitals, school boards and colleges. The annual change in the Accumulated Deficit is equal to the Surplus/Deficit.
Note: Numbers may not add due to rounding.
| Budget Plan 2006–07 |
Outlook 1 2006–07 |
In-Year Change |
|
|---|---|---|---|
| Revenue | 85,730 | 87,044 | 1,314 |
| Expense | |||
| Programs | 77,651 | 78,789 | 1,138 |
| Interest on Debt | 9,429 | 9,204 | (225) |
| Total Expense | 87,080 | 87,993 | 913 |
| Surplus/(Deficit) Before Reserve | (1,350) | (949) | 401 |
| Reserve | 1,000 | 1,000 | – |
| Surplus/(Deficit) | (2,350) | (1,949) | 401 |
1 Second-quarter fiscal forecast as at September 30, 2006.
| 2002–03 | 2003–04 | 2004–05 | Actual 2005–06 |
Outlook 1 2006–07 |
|
|---|---|---|---|---|---|
| Taxation Revenue | |||||
| Personal Income Tax | 18,195 | 18,301 | 19,320 | 21,041 | 22,321 |
| Retail Sales Tax | 14,183 | 14,258 | 14,855 | 15,554 | 16,165 |
| Corporations Tax | 7,459 | 6,658 | 9,883 | 9,984 | 9,585 |
| Employer Health Tax | 3,589 | 3,753 | 3,886 | 4,197 | 4,299 |
| Ontario Health Premium | – | – | 1,737 | 2,350 | 2,541 |
| Gasoline Tax | 2,306 | 2,264 | 2,277 | 2,281 | 2,303 |
| Fuel Tax | 682 | 681 | 727 | 729 | 742 |
| Tobacco Tax | 1,183 | 1,350 | 1,453 | 1,379 | 1,405 |
| Land Transfer Tax | 814 | 909 | 1,043 | 1,159 | 1,125 |
| Electricity Payments-In-Lieu of Taxes | 711 | 627 | 511 | 951 | 790 |
| Other Taxes | 429 | 347 | 283 | 292 | 283 |
| 49,551 | 49,148 | 55,975 | 59,917 | 61,559 | |
| Government of Canada | |||||
| Canada Health and Social Transfer (CHST) | 7,346 | 7,345 | – | – | – |
| Canada Health Transfer (CHT) | – | – | 5,640 | 7,148 | 7,619 |
| Canada Social Transfer (CST) 2 | – | – | 2,912 | 3,324 | 3,420 |
| CHST Supplements | 191 | 577 | 775 | 584 | – |
| Social Housing | 525 | 528 | 522 | 520 | 530 |
| Infrastructure Programs | 97 | 150 | 209 | 285 | 359 |
| Wait Times Reduction Fund | – | – | 242 | 243 | 467 |
| Medical Equipment Funds | – | 192 | 387 | 194 | – |
| Other Government of Canada | 735 | 1,101 | 1,195 | 953 | 1,643 |
| 8,894 | 9,893 | 11,882 | 13,251 | 14,038 | |
| Income from Investment in Government Business Enterprises | |||||
| Ontario Lottery and Gaming Corporation | 2,288 | 2,106 | 1,992 | 2,027 | 1,743 |
| Liquor Control Board of Ontario | 939 | 1,045 | 1,147 | 1,197 | 1,254 |
| Ontario Power Generation Inc. and Hydro One Inc. | 717 | (17) | 444 | 1,107 | 919 |
| Other Government Enterprises | (2) | (64) | (5) | (23) | 4 |
| 3,942 | 3,070 | 3,578 | 4,308 | 3,920 | |
| Other Non-Tax Revenue | |||||
| Reimbursements | 1,111 | 1,206 | 1,241 | 1,295 | 1,358 |
| Electricity Debt Retirement Charge | 889 | 1,000 | 997 | 1,021 | 1,027 |
| Vehicle and Driver Registration Fees | 982 | 985 | 976 | 763 | 1,021 |
| Power Sales | 635 | 510 | 610 | 779 | 988 |
| Other Fees and Licences | 606 | 594 | 506 | 550 | 556 |
| Liquor Licence Revenue | 530 | 488 | 489 | 516 | 453 |
| Net Reduction of Power Purchase Contract Liability | 161 | 104 | 236 | 396 | 412 |
| Sales and Rentals | 560 | 532 | 352 | 465 | 969 |
| Royalties | 304 | 248 | 278 | 191 | 243 |
| Miscellaneous Other Non-Tax Revenue | 726 | 622 | 721 | 773 | 500 |
| 6,504 | 6,289 | 6,406 | 6,749 | 7,527 | |
| Total Revenue | 68,891 | 68,400 | 77,841 | 84,225 | 87,044 |
1 Second-quarter fiscal forecast as at September 30, 2006.
2 Includes 2005 federal budget additional Early Learning and Child Care revenues of $272 million in 2005-06 and $254 million in 2006-07.
| Ministry | 2002–03 | 2003–04 | 2004–05 | Actual 2005–06 |
Outlook 1 2006–07 |
|---|---|---|---|---|---|
| Agriculture, Food and Rural Affairs | 666 | 843 | 799 | 865 | 880 |
| One-Time and Extraordinary Assistance | 18 | 64 | 601 | 282 | 192 |
| Attorney General | 1,103 | 1,231 | 1,209 | 1,291 | 1,301 |
| Board of Internal Economy | 146 | 196 | 145 | 150 | 169 |
| Children and Youth Services | 2,457 | 2,660 | 2,851 | 3,330 | 3,279 |
| Citizenship and Immigration | 55 | 55 | 64 | 93 | 91 |
| Community and Social Services | 5,844 | 5,990 | 6,379 | 6,737 | 7,070 |
| Community Safety and Correctional Services | 1,713 | 1,704 | 1,749 | 1,767 | 1,887 |
| Culture | 373 | 327 | 344 | 475 | 366 |
| Democratic Renewal Secretariat | – | – | 2 | 2 | 10 |
| Economic Development and Trade | 104 | 89 | 84 | 202 | 353 |
| Education | 345 | 352 | 368 | 418 | 446 |
| School Boards 2 | 8,739 | 9,400 | 10,251 | 10,886 | 11,219 |
| Teachers' Pension Plan (TPP) | 238 | 235 | 240 | 295 | 408 |
| Energy | 190 | 169 | 194 | 207 | 242 |
| Environment | 250 | 265 | 307 | 275 | 302 |
| Executive Offices | 20 | 24 | 19 | 19 | 19 |
| Finance | 1,082 | 1,229 | 1,067 | 1,034 | 1,167 |
| Interest on Debt | 9,694 | 9,604 | 9,368 | 9,019 | 9,204 |
| Community Reinvestment Fund/Ontario Municipal Partnership Fund | 622 | 651 | 626 | 714 | 731 |
| Community Reinvestment Fund One-Time Transition Funding | – | – | 233 | – | – |
| Electricity Consumer Price Protection Fund | 665 | 253 | – | – | – |
| Power Purchases | 786 | 797 | 840 | 803 | 988 |
| Contingency Fund | – | – | – | – | 1,292 |
| Government Services | 331 | 467 | 898 | 562 | 811 |
| Pensions and Other Employee Future Benefits | 102 | 309 | 458 | 729 | 594 |
| Health and Long-Term Care 3 | 14,758 | 16,232 | 17,572 | 17,722 | 18,687 |
| Hospitals 2,3 | 11,241 | 12,830 | 13,759 | 14,816 | 16,463 |
| Health Promotion | 175 | 204 | 241 | 296 | 363 |
| Intergovernmental Affairs | 9 | 6 | 13 | 10 | 9 |
| Labour | 123 | 117 | 129 | 141 | 150 |
| Municipal Affairs and Housing | 656 | 635 | 772 | 928 | 693 |
| Natural Resources | 526 | 627 | 563 | 632 | 806 |
| Northern Development and Mines | 302 | 189 | 320 | 337 | 347 |
| Office of Francophone Affairs | 3 | 3 | 3 | 4 | 4 |
| Public Infrastructure Renewal 4 | 93 | (35) | 41 | 107 | 120 |
| Contingency Fund | – | – | – | – | 169 |
| Research and Innovation | 158 | 194 | 263 | 370 | 345 |
| Secretariat for Aboriginal Affairs | 18 | 15 | 21 | 50 | 21 |
| Tourism | 155 | 212 | 167 | 210 | 161 |
| Training, Colleges and Universities | 2,473 | 2,834 | 3,316 | 3,529 | 3,876 |
| Colleges 2 | 987 | 1,090 | 1,289 | 1,185 | 1,359 |
| Transportation | 1,554 | 1,816 | 1,831 | 2,203 | 2,093 |
| Move Ontario | – | – | – | 1,232 | 6 |
| Year-End Savings | – | – | – | – | (700) |
| Total Expense | 68,774 | 73,883 | 79,396 | 83,927 | 87,993 |
1 Second-quarter fiscal forecast as at September 30, 2006.
2 Starting in 2005-06, the Province's financial reporting was expanded to include hospitals, school boards and colleges using one-line consolidation. Prior to 2005-06, historical figures reflect grants to these entities for comparison purposes.
3 The 2003-04 expenses for Health and Long-Term Care and Hospitals include $824 million of SARS-related and major one-time health costs. The 2006-07 figures reflect a change in the presentation of expense in the Health Sector to be consistent with the 2005-06 Public Accounts. This change in presentation does not affect total expense.
4 Credit amounts relate to consolidation adjustments between the Ontario Realty Corporation and ministries to reflect net spending for the year.
Note: Expense amounts for 2002-03 to 2004-05 have been restated to reflect ministry restructuring that occurred during fiscal 2005-06. This restatement has no impact on total expense or the surplus/deficit.
| Total Infrastructure Expenditures 2005–06 Actual |
2006–07 Outlook 1 | |||
|---|---|---|---|---|
| Investment in Capital Assets |
Transfers and Other Expenditures in Infrastructure 2 |
Total Infrastructure Expenditures |
||
| Transportation | ||||
| Transit | 1,541 | 546 | 547 | 1,093 |
| Highways | 1,237 | 1,295 | 116 | 1,411 |
| Other Transportation | 494 | 2 | 60 | 62 |
| Health | ||||
| Hospitals | 296 | 305 | – | 305 |
| Other Health | 166 | 32 | 172 | 204 |
| Education | ||||
| School Boards | 949 | – | 1,110 | 1,110 |
| Colleges | 44 | 13 | – | 13 |
| Universities | 88 | – | 27 | 27 |
| Water/Environment | 342 | 10 | 226 | 236 |
| Municipal and Local Infrastructure 3 | 455 | 2 | 451 | 453 |
| Justice | 84 | 64 | 53 | 117 |
| Other | 468 | 290 | 232 | 522 |
| Total 4 | 6,164 | 2,559 | 2,994 | 5,553 |
1 Second-quarter fiscal forecast as at September 30, 2006.
2 Mainly consists of transfers for capital purposes to municipalities and universities, expenditures for servicing capital-related debt of schools, and expenditures for the repair and rehabilitation of schools. These expenditures are included in the Province's Total Expenses in Table 4.
3 Municipal and local water and wastewater infrastructure investments are included in the Water/Environment sector.
4 Total expenditures include $36 million in flow-throughs in Investment in Capital Assets (for provincial highways) and $208 million in flow-throughs in Transfers and Other Expenditures in Infrastructure ($31 million in Transportation, $26 million in Water/Environment, $150 million in Municipal and Local Infrastructure, and $1 million in Other Infrastructure).
| 1997–98 | 1998–99 | 1999–00 | 2000–01 | 2001–02 | |
|---|---|---|---|---|---|
| Financial Transactions | |||||
| Revenue | 52,782 | 56,050 | 65,042 | 66,294 | 66,534 |
| Expense | |||||
| Programs 3 | 48,019 | 49,036 | 53,347 | 53,519 | 55,822 |
| Interest on Debt | 8,729 | 9,016 | 11,027 | 10,873 | 10,337 |
| Total Expense 3 | 56,748 | 58,052 | 64,374 | 64,392 | 66,159 |
| Surplus/(Deficit) Before Reserve | (3,966) | (2,002) | 668 | 1,902 | 375 |
| Reserve | – | – | – | – | – |
| Surplus/(Deficit) | (3,966) | (2,002) | 668 | 1,902 | 375 |
| Net Debt 4 | 112,735 | 114,737 | 134,398 | 132,496 | 132,121 |
| Accumulated Deficit 4 | 112,735 | 114,737 | 134,398 | 132,496 | 132,121 |
| Gross Domestic Product (GDP) at Market Prices | 359,353 | 377,897 | 409,020 | 440,759 | 453,701 |
| Personal Income | 289,537 | 304,652 | 321,702 | 347,653 | 361,187 |
| Population — July (000s) | 11,228 | 11,367 | 11,506 | 11,685 | 11,898 |
| Net Debt per Capita (dollars) | 10,041 | 10,094 | 11,681 | 11,339 | 11,104 |
| Personal Income per Capita (dollars) | 25,787 | 26,801 | 27,959 | 29,752 | 30,357 |
| Total Expense as a per cent of GDP | 15.8 | 15.4 | 15.7 | 14.6 | 14.6 |
| Interest on Debt as a per cent of Revenue | 16.5 | 16.1 | 17.0 | 16.4 | 15.5 |
| Net Debt as a per cent of GDP | 31.4 | 30.4 | 32.9 | 30.1 | 29.1 |
| Accumulated Deficit as a per cent of GDP | 31.4 | 30.4 | 32.9 | 30.1 | 29.1 |
| 2002–03 | 2003–04 | 2004–05 | Actual 1 2005–06 |
Outlook 2 2006–07 |
|
|---|---|---|---|---|---|
| Financial Transactions | |||||
| Revenue | 68,891 | 68,400 | 77,841 | 84,225 | 87,044 |
| Expense | |||||
| Programs 3 | 59,080 | 64,279 | 70,028 | 74,908 | 78,789 |
| Interest on Debt | 9,694 | 9,604 | 9,368 | 9,019 | 9,204 |
| Total Expense 3 | 68,774 | 73,883 | 79,396 | 83,927 | 87,993 |
| Surplus/(Deficit) Before Reserve | 117 | (5,483) | (1,555) | 298 | (949) |
| Reserve | – | – | – | – | 1,000 |
| Surplus/(Deficit) | 117 | (5,483) | (1,555) | 298 | (1,949) |
| Net Debt 4 | 132,647 | 138,557 | 140,921 | 141,928 | 145,345 |
| Accumulated Deficit 4 | 118,705 | 124,188 | 125,743 | 109,155 | 111,104 |
| Gross Domestic Product (GDP) at Market Prices | 477,528 | 491,859 | 517,306 | 538,386 | 554,529 |
| Personal Income | 370,418 | 383,197 | 400,287 | 419,230 | 438,685 |
| Population — July (000s) | 12,102 | 12,260 | 12,407 | 12,541 | 12,696 |
| Net Debt per Capita (dollars) | 10,961 | 11,302 | 11,358 | 11,317 | 11,448 |
| Personal Income per Capita (dollars) | 30,608 | 31,256 | 32,263 | 33,429 | 34,553 |
| Total Expense as a per cent of GDP | 14.4 | 15.0 | 15.3 | 15.6 | 15.9 |
| Interest on Debt as a per cent of Revenue | 14.1 | 14.0 | 12.0 | 10.7 | 10.6 |
| Net Debt as a per cent of GDP | 27.8 | 28.2 | 27.2 | 26.4 | 26.2 |
| Accumulated Deficit as a per cent of GDP | 24.9 | 25.2 | 24.3 | 20.3 | 20.0 |
1 Starting in 2005-06, the Province's financial reporting was expanded to include hospitals, school boards and colleges using one-line consolidation. Total expense prior to 2005-06 has not been restated to reflect expanded reporting.
2 Second-quarter fiscal forecast as at September 30, 2006.
3 Starting in 2002-03, major tangible capital assets owned by Provincial ministries (land, buildings and transportation infrastructure) are accounted for on a full accrual accounting basis. Other tangible capital assets owned by Provincial ministries will continue to be accounted for as expense in the year of acquisition or construction. All capital assets owned by consolidated organizations are accounted for on a full accrual basis.
4 Net Debt is calculated as the difference between liabilities and financial assets. The annual change in Net Debt is equal to the Surplus/Deficit of the Province plus the change in tangible capital assets and the change in net assets of hospitals, school boards and colleges. Accumulated Deficit is calculated as the difference between liabilities and total assets including tangible capital assets and net assets of hospitals, school boards and colleges. The annual change in the Accumulated Deficit is equal to the Surplus/Deficit. For fiscal 2005-06, the change in the Accumulated Deficit includes the opening combined net assets of hospitals, school boards and colleges that were recognized upon consolidation of these broader public sector entities.
Sources: Ontario Ministry of Finance and Statistics Canada.
