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Ontario projected to balance budget due to Ford government underspending: watchdog

The Ford government is projected to balance the provincial budget and post a small surplus, according to Ontario’s financial watchdog, the result of $7.2 billion of underspending in the last fiscal year.

Using figures provided by the Ford government, Ontario’s Financial Accountability Officer (FAO) released a review of provincial spending during the 2022-23 financial year and uncovered billions of dollars that went unspent.

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“The $7.2 billion in below-planned spending (or net savings) will be used to reduce both the budget deficit and Ontario’s net debt,” the FAO’s report stated.

As a result, the FAO projects the province will post a $37-million surplus, compared with the $2.2-billion deficit the Finance Minister projected when he delivered the 2023 budget in March.

A spokesperson for Treasury Board president Prabmeet Sarkaria disputed the FAO’s findings claiming it is “not representative of actual government spending.”

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“In the 2023 Budget, Ontario’s deficit is projected to be $2.2 billion for 2022-23, returning to balance by 2024-25,” the spokesperson said in a statement.

While Finance Minister Peter Bethlenfalvy is expected to provide a financial update in mid-August, the government said an accurate picture of provincial spending will be released in Public Accounts documents due to be released in September.

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