2011 Ontario Budget: Chapter II: Ontario's Economic Outlook and Fiscal Plan
Section H: 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 23. Medium-Term Fiscal Plan and Outlook
($ Billions)
  Interim
2010–11		 Plan
2011–12		 Outlook
2012–13 2013–14
Revenue 106.2 108.5 111.8 117.0
Expense        
Programs 113.3 113.8 114.6 116.7
Interest on Debt1 9.5 10.3 11.4 12.6
Total Expense 122.9 124.1 126.0 129.3
Reserve – 0.7 1.0 1.0
Surplus/(Deficit) (16.7) (16.3) (15.2) (13.3)
Net Debt 217.3 241.5 264.8 284.8
Accumulated Deficit 147.6 164.0 179.1 192.4
1 Interest on Debt expense is net of interest capitalized during construction of tangible capital assets of $0.2 billion in 2010–11, $0.3 billion in 2011–12, $0.3 billion in 2012–13, and $0.4 billion in 2013–14.
Note: Numbers may not add due to rounding.

TABLE 24. Revenue
($ Millions)
  2008–09 Actual
2009–10		 Interim
2010–11		 Plan
2011–12
Taxation Revenue        
Personal Income Tax 25,738 23,393 23,761 25,500
Sales Tax1 17,021 17,059 19,047 20,134
Corporations Tax 6,748 5,615 8,250 8,874
Education Property Tax2 5,696 5,626 5,757 5,727
Employer Health Tax 4,617 4,545 4,784 4,991
Ontario Health Premium 2,776 2,763 2,967 3,074
Gasoline Tax 2,323 2,336 2,387 2,392
Land Transfer Tax 1,013 1,015 1,249 1,249
Tobacco Tax 1,044 1,083 1,158 1,142
Fuel Tax 698 658 711 721
Beer and Wine Tax (replacing Fees)3 – – 398 538
Electricity Payments-In-Lieu of Taxes 830 516 295 532
Other Taxes 352 322 500 396
  68,856 64,931 71,264 75,270
Government of Canada        
Canada Health Transfer 8,942 9,791 10,186 10,713
Canada Social Transfer 4,079 4,204 4,330 4,460
Equalization – 347 972 2,350
Infrastructure Programs 151 990 1,708 538
Labour Market Programs 797 1,253 1,214 891
Social Housing 520 498 487 482
Wait Times Reduction Fund 235 97 97 97
Other Federal Payments 1,867 1,440 4,004 2,200
  16,591 18,620 22,998 21,731
Government Business Enterprises        
Ontario Lottery and Gaming Corporation 1,921 1,924 1,925 1,738
Liquor Control Board of Ontario 1,410 1,440 1,544 1,641
Ontario Power Generation Inc./Hydro One Inc. 713 854 926 1,131
Other Government Enterprises (2) (23) 2 3
  4,042 4,195 4,397 4,513
Other Non-Tax Revenue        
Reimbursements 1,379 1,429 1,045 791
Vehicle and Driver Registration Fees 1,034 1,057 1,069 1,084
Electricity Debt Retirement Charge 970 907 934 931
Power Supply Contract Recoveries 953 1,409 1,281 1,351
Sales and Rentals 733 647 780 823
Other Fees and Licences 683 717 749 768
Beer and Wine Fees (replaced by Tax)3 459 451 172 –
Net Reduction of Power Purchase Contract Liability 373 348 339 317
Royalties 205 228 190 218
Miscellaneous Other Non-Tax Revenue 655 854 967 656
  7,444 8,047 7,526 6,939
Total Revenue 96,933 95,793 106,185 108,453
1 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 includes the Ontario Sales Tax Credit and the energy component of the Ontario Energy and Property Tax Credit.
2 Education Property Tax revenue includes the property tax credit component of the Ontario Energy and Property Tax Credit.
3 Beer and Wine Tax replaces Beer and Wine Fees and the reduced sales tax on alcohol. There is no net new revenue for the Province.

TABLE 25. Total Expense
($ Millions)
   2008-09 Actual
2009–10		 Interim
2010–11		 Plan
2011–12
Aboriginal Affairs 55 67 81.1 78.4
Agriculture, Food and Rural Affairs1 877 1,265 919.1 1,235.5
Attorney General 1,749 1,663 1,756.0 1,905.2
Board of Internal Economy 188 187 193.9 293.9
Children and Youth Services 3,223 3,588 3,866.9 3,931.5
Citizenship and Immigration 89 101 107.6 102.0
Community and Social Services 7,992 8,621 9,234.5 9,769.5
Community Safety and Correctional Services 2,121 2,201 2,654.0 2,756.1
Consumer Services 18 17 19.4 20.4
Economic Development and Trade 245 223 269.1 353.1
Education1 20,471 21,177 22,208.6 23,220.3
Energy1 326 469 584.5 331.7
Environment1 379 375 396.5 382.6
Executive Offices 35 34 32.5 31.4
Finance1 602 492 534.9 552.0
Francophone Affairs, Office of 5 5 5.5 5.5
Government Services1 945 1,113 1,083.2 1,083.8
Health and Long-Term Care 40,352 42,725 44,949.5 47,139.6
Health Promotion and Sport1 382 385 394.1 398.4
Infrastructure1,2 (75) (178) (155.4) (96.7)
Labour 177 179 190.3 190.8
Municipal Affairs and Housing1 725 664 669.8 602.8
Natural Resources 605 624 646.6 603.2
Northern Development, Mines and Forestry 645 653 811.8 832.4
Research and Innovation1 295 333 365.5 369.5
Revenue1 635 1,129 953.1 894.4
Tourism and Culture1 566 668 732.8 808.8
Training, Colleges and Universities1 6,081 6,479 6,826.6 6,989.4
Transportation1 2,033 2,092 2,240.4 2,340.3
Interest on Debt3 8,566 8,719 9,527.0 10,289.8
Other Expense1 3,035 8,985 10,771.6 7,727.8
Year-End Savings4 – – – (1,075.0)
Total Expense 103,342 115,055 122,871.2 124,068.2
1 Details on other ministry expense can be found in Table 26, Other Expense.
2 Credit expense amounts are a result of adjustments between the Ministry of Infrastructure and other ministries to reflect consolidated net spending on realty assets for the year.
3 Interest on debt is net of interest capitalized during construction of tangible capital assets of $148 million in 2009–10, $195 million in 2010–11 and $268 million in 2011–12.
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 26. Other Expense
($ Millions)
Ministry Expense 2008–09 Actual
2009–10		 Interim
2010–11		 Plan
2011–12
Agriculture, Food and Rural Affairs        
Time-Limited Investments in Infrastructure – 618 1,501.2 293.4
Time-Limited Assistance 13 27 9.0 –
Education        
Teachers' Pension Plan1 50 255 521.8 526.0
Energy        
Ontario Clean Energy Benefit – – 300.0 1,135.0
Environment        
One-Time Investments 68 37 – –
Finance        
One-Time Automotive Sector Support2 75 3,022 – –
Ontario Municipal Partnership Fund 905 781 683.5 623.7
Operating Contingency Fund – – 250.0 600.0
Pension Benefit Guarantee Fund – 500 – –
Power Supply Contract Costs 953 1,409 1,281.0 1,351.0
Government Services        
Pension and Other Employee Future Benefits 971 949 1,199.0 1,341.0
Health Promotion and Sport        
Time-Limited Investments in Infrastructure – 48 288.4 44.2
Time-Limited Investments to Support Pan/Parapan Am Games – – 15.6 28.3
Infrastructure        
Capital Contingency Fund – – – 100.0
Municipal Affairs and Housing        
Time-Limited Investments in Municipal Social and Affordable Housing Stock – 585 660.7 95.1
One-Time Assistance – – 22.6 –
Research and Innovation        
One-Time Investments – 5 – –
Revenue        
Harmonized Sales Tax Transitional Support – – 3,200.0 1,440.6
Tourism and Culture        
One-Time Investments – – 23.1 3.1
Training, Colleges and Universities        
Time-Limited Investments – 559 815.7 146.3
Transportation        
One-Time Transit and Infrastructure Investments – 190 – –
Total Other Expense 3,035 8,985 10,771.6 7,727.8
1 Numbers reflect PSAB pension expense. Ontario's matching contributions to the plan grow from $1,070 million in 2008–09 to $1,381 million in 2011–12.
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 27. 2011–12 Infrastructure Expenditures
($ Millions)
 Sector  Total
Infrastructure
Expenditures
2010–11 Interim		 2011–12 Plan
Investment
in Capital
Assets1		 Transfers
and Other
Infrastructure
Expenditures2		 Total
Infrastructure
Expenditures
Transportation        
Transit 1,747 2,093 391 2,483
Provincial Highways 1,985 2,118 – 2,118
Other Transportation3 800 708 84 792
Health        
Hospitals 2,726 2,573 10 2,583
Other Health 183 118 171 289
Education 1,822 2,092 30 2,121
Postsecondary        
Colleges 105 168 – 168
Universities 105 – 107 107
Water/Environment 235 39 249 288
Municipal and Local Infrastructure 431 134 191 325
Justice 625 851 52 903
Other 493 705 72 776
Short-Term Stimulus Investments 3,613 42 451 493
Subtotal 14,869 11,639 1,808 13,447
Less: Other Partner Funding4 723 674 – 674
Total Excluding Partner Funding 14,146 10,965 1,808 12,773
Less: Flow-Throughs5 2,088 96 603 699
Total Provincial Expenditure6 12,058 10,870 1,205 12,075
1 Investment in Capital Assets includes interest capitalized during construction of tangible capital assets of $268 million.
2 Mainly consists of transfers for capital purposes to municipalities and universities, and expenditures for capital repairs.
3 Other transportation includes planning activities, property acquisition, highway service centres and other infrastructure programs (e.g., municipal/local roads, remote airports).
4 Third-Party Contributions for capital investment in the consolidated sectors (schools, colleges and hospitals).
5 Mostly federal government transfers for capital investments.
6 Total Provincial Infrastructure Expenditure includes Investment in Capital Assets of $9.5 billion for 2010–11.
Note: Numbers may not add due to rounding.

TABLE 28. Ten-Year Review of Selected Financial and Economic Statistics1
($ Millions)
  2002–032 2003–04 2004–05 2005–063 2006–07 2007–08 2008–09 Actual
2009–102		 Interim
2010–11		 Plan
2011–12
Financial Transactions                    
Revenue 74,675 74,269 83,861 90,305 96,640 103,579 96,933 95,793 106,185 108,453
Expense                    
Programs 64,864 70,148 76,048 80,988 85,540 94,065 94,776 106,336 113,344 113,778
Interest on Debt4 9,694 9,604 9,368 9,019 8,831 8,914 8,566 8,719 9,527 10,290
Total Expense 74,558 79,752 85,416 90,007 94,371 102,979 103,342 115,055 122,871 124,068
Reserve – – – – – – – – – 700
Surplus/(Deficit) 117 (5,483) (1,555) 298 2,269 600 (6,409) (19,262) (16,686) (16,316)
Net Debt5 132,647 138,816 140,921 152,702 153,742 156,616 169,585 193,589 217,347 241,472
Accumulated Deficit 118,705 124,188 125,743 109,155 106,776 105,617 113,238 130,957 147,643 163,959
Gross Domestic Product (GDP) at Market Prices 477,763 493,081 516,106 537,383 560,576 583,946 584,460 578,183 613,695 641,992
Personal Income 369,420 381,127 400,994 419,457 442,736 466,051 478,696 477,641 496,610 517,436
Population — July (000s) 12,091 12,242 12,391 12,528 12,665 12,793 12,932 13,065 13,211 13,374
Net Debt per Capita (dollars) 10,971 11,339 11,373 12,188 12,139 12,242 13,113 14,817 16,452 18,056
Personal Income per Capita (dollars) 30,553 31,132 32,363 33,480 34,956 36,430 37,016 36,559 37,592 38,690
Interest on Debt as a per cent of Revenue 13.0 12.9 11.2 10.0 9.1 8.6 8.8 9.1 9.0 9.5
Net Debt as a per cent of GDP 27.8 28.2 27.3 28.4 27.4 26.8 29.0 33.5 35.4 37.6
Accumulated Deficit as a per cent of GDP 24.8 25.2 24.4 20.3 19.0 18.1 19.4 22.6 24.1 25.5
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.
2 Starting in 2002–03, investments in major tangible capital assets owned by the Province (land, buildings, and transportation infrastructure) have been capitalized and amortized to expense over their useful lives. 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 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.
4 Interest on Debt is net of interest capitalized during construction of tangible capital assets of $148 million in 2009–10, $195 million in 2010–11 and $268 million in 2011–12.
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 2003–04, 2004–05 and 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 22: Pie Graph: Composition of Revenue, 2011-12


Chart 23: Pie Graph: Composition of Total Expense, 2011-12


Chart 24: Pie Graph: Composition of Program Expense, 2011-12


Support from Gaming for Health Care, the Ontario Trillium Foundation and Communities

Proceeds from gaming activities in Ontario continue to support Provincial priorities, including the operation and support of hospitals, charities, amateur sports, communities, Ontario First Nations and the agricultural sector.

TABLE 29. Support for Health Care, Charities, and Problem Gambling and Related Programs
($ Millions)
  Interim
2010–11		 Plan
2011–12
Revenue from Lotteries, Charity Casinos and Slot Machines at Racetracks:    
Operation of Hospitals 1,636 1,498
Ontario Trillium Foundation 120 120
Problem Gambling and Related Programs 39 41
Ontario Amateur Sports 10 10
Revenue from Commercial Casinos:    
General Government Priorities 120 69
Total 1,925 1,738
Note: Numbers may not add due to rounding.

Revenue from Lotteries, Charity Casinos and Slot Machines at Racetracks

The Ontario Lottery and Gaming Corporation Act, 1999 requires that net Provincial revenue generated from lotteries, charity casinos and racetrack slot machines support services such as the operation of hospitals, problem gambling and related programs, amateur sports, and funding for charitable and not-for-profit organizations through the Ontario Trillium Foundation.

An estimated $1,498 million in net revenue from lotteries, charity casinos and slot machines at racetracks will be applied to support the operation of hospitals in 2011–12.

In 2011–12, the Ontario Trillium Foundation will receive $120 million to help build strong and healthy communities through contributions to charitable and not-for-profit organizations in the arts and culture, sports and recreation, human and social services, and environment sectors.

Two per cent of gross slot-machine revenue, estimated at $41 million for 2011–12, is allocated for problem gambling prevention, treatment and research programs.

The Quest for Gold lottery will provide an estimated $10 million in 2011–12 for financial support to Ontario’s high-performance amateur athletes.

Benefits from Commercial Casinos

In 2011–12, net Provincial revenue from commercial casinos, estimated at $69 million, will be used to support general government priorities, including health care, education and public infrastructure. In addition, commercial casino operations support approximately 10,400 direct jobs in Ontario and provide vital tourism and economic development attractions for their respective communities.

Other Beneficiaries of Gaming Activities

TABLE 30. Support for Agricultural Sector, Municipalities and Ontario First Nations1
($ Millions)
  Interim
2010–11		 Plan
2011–12
Agricultural Sector 341 345
Municipalities 77 76
Ontario First Nations – 117
Total 418 538
1 Operating expenses of the Ontario Lottery and Gaming Corporation (OLG) include revenues to the agricultural sector as part of the Slots at Racetracks Program, host municipalities of OLG gaming sites and payments made to Ontario First Nations under the Gaming Revenue Sharing and Financial Agreement.

Approximately 20 per cent of gross revenue from slot machines at racetracks is used to promote the economic growth of the horse-racing industry. Since 1998, this initiative has provided over $3.4 billion to the horse-racing industry in Ontario, a key component of the Province’s agricultural sector. For 2011–12, additional support is estimated at $345 million.

A portion of gross slot-machine revenue, estimated at $76 million in 2011–12, will be provided quarterly to municipalities that host charity casinos and slot operations at racetracks. These revenues will help offset local infrastructure and service costs.

Beginning in 2011–12, Ontario First Nations will receive 1.7 per cent of gross gaming revenues, estimated at $117 million in 2011–12, through the Gaming Revenue Sharing and Financial Agreement to invest in education, health, economic, community and social development.