Ontario’s Progressive Conservative government is sitting on more than $22 billion in “excess funds,” according to the province’s watchdog, with no transparency on how that money will be used over the next four years.
The province’s independent Financial Accountability Office (FAO) released a long-term spending forecast, based on the government’s own figures, and uncovered a growing pool of taxpayer dollars that have yet to be attached to any specific program.
“The $22.6 billion in excess funds is an increase of $10.8 billion from the FAO’s Winter economic and budget outlook and reflects new funding added by the Province in the 2023 Ontario Budget,” the watchdog’s office said in the report.
Of the $22.6 billion in funding, the FAO says the government has set aside $4.4 billion in excess health care funding, $1 billion in post-secondary education and $17.8 billion in “other programs.”
The FAO says while the funds “are not required to support the cost of current programs and announced commitments” the province could use the money to finance future programs or pay for unexpected expenditures.
“If the Province decides not to use the $22.6 billion in excess funds, then these funds would be applied to improve the budget balance and reduce the Province’s net debt,” the FAO said.
In a statement to Global News, a spokesperson for Finance Minister Peter Bethlenfalvy said the FAO’s report is “not representative of actual government spending.”
“The FAO’s snapshot in time simply isn’t reflective of the realities of our government’s investments in delivering better services for Ontarians,” the spokesperson said. “Our government will continue with our responsible, targeted approach to build a strong Ontario.”
The contract for Peter Weltman, the latest Chief Financial Accountability Officer of Ontario, was not renewed by the Ford government in May. A committee is in the potentially lengthy process of finding his successor.
The FAO is also projecting double digit surpluses over the next five years as Ontario’s post-pandemic fiscal position improves.
In 2025, the budget watchdog is predicting a $10.6 billion surplus, compared to the $4.4 billion Finance Minister Peter Bethlenfalvy outlined in the 2023 budget.
The FAO said that should the government use the excess funds and surpluses to pay down the provincial debt, Ontario’s debt burden could be lowered to its lowest level since 2008, giving the government more fiscal room for program spending.
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