{"id":7404,"date":"2021-02-10T22:57:47","date_gmt":"2021-02-10T22:57:47","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2021\/02\/10\/ontario-spending-ticks-up-by-2-6-billion-amid-ongoing-pressure-from-pandemic\/"},"modified":"2021-02-10T22:57:47","modified_gmt":"2021-02-10T22:57:47","slug":"ontario-spending-ticks-up-by-2-6-billion-amid-ongoing-pressure-from-pandemic","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2021\/02\/10\/ontario-spending-ticks-up-by-2-6-billion-amid-ongoing-pressure-from-pandemic\/","title":{"rendered":"Ontario spending ticks up by $2.6 billion amid ongoing pressure from pandemic"},"content":{"rendered":"<div style=\"text-align:center\"><\/div><p> \n<\/p>\n<div id=\"\">\n<header aria-label=\"Beginning of Article\" class=\"article-header\">\n<nav aria-label=\"Breadcrumb\" class=\"breadcrumbs\">\n<h2 class=\"visually-hidden\">Breadcrumb Trail Links<\/h2>\n<ol class=\"breadcrumbs__items list-unstyled\">\n<li class=\"breadcrumbs__item\"> Economy <\/li>\n<\/ol>\n<\/nav>\n<p class=\"article-subtitle\"> The expenses will be offset mainly with contingency funds, and the province says it has now &#8216;fully allocated&#8217; its $13.3B in pandemic-related response and contingency funds <\/p>\n<div class=\"article-meta\">\n<div class=\"published-by\">\n<p>Author of the article:<\/p>\n<p> <span class=\"published-by__author\">Geoff Zochodne<\/span> <\/div>\n<div class=\"published-date\">\n<p>Publishing date:<\/p>\n<p> <span class=\"published-date__since\">Feb 10, 2021<\/span> \u00a0\u2022\u00a0 <span class=\"updated-date__since\">2\u00a0hours ago<\/span> \u00a0\u2022\u00a0 <span class=\"published-date__word-count\">3 minute read<\/span> <\/div><\/div>\n<figure class=\"featured-image\"><picture class=\"featured-image__ratio featured-image-category__economy\"><\/picture><figcaption class=\"featured-image__caption image-caption\"><span class=\"caption\">Finance Minister Peter Bethlenfalvy: &#8220;All of us know this level of spending is not sustainable in the long term.&#8221;<\/span> <span class=\"credit\">Photo by Christopher Katsarov\/The Canadian Press\/File<\/span> <\/figcaption><\/figure>\n<\/header>\n<section class=\"article-content__content-group\">\n<h2 class=\"visually-hidden\">Article content<\/h2>\n<p>The Ontario government says the COVID-19 pandemic is further driving up its already record levels of spending, prompting the province to take new steps to ensure it has emergency funding at the ready.<\/p>\n<p>Ontario\u2019s finances for the quarter ended Dec. 31 show that expenses are now expected to rise an additional $2.6 billion compared to what was forecast in its November budget, bringing total costs to $189.7 billion for the year ending March 31. The hike is attributed mostly to spending on hospitals, long-term care homes and support for lockdown-affected businesses.<\/p>\n<p>Those added expenses are to be offset primarily with contingency funds, and the province says it has now \u201cfully allocated\u201d the $13.3-billion in pandemic-related response and contingency funds it had set aside in its fall spending plan.<\/p>\n<p>An additional $2.1 billion is being put into the province\u2019s standard contingency fund in case it\u2019s needed, increasing it to approximately $4 billion. Finance Minister Peter Bethlenfalvy said these funds were essentially being freed up by drawing on the province\u2019s fiscal reserve, which has been reduced to $500 million for the relatively short time left in 2020-21 from the $2.5 billion allocated there in the fall budget.<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group\">\n<section class=\"ad\">\n<h2 class=\"visually-hidden\">Advertisement<\/h2>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-1\">\n<div class=\"ad__placeholder\">\n<p> This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group\">\n<h2 class=\"visually-hidden\">Article content<\/h2>\n<p>\u201cAll of us know this level of spending is not sustainable in the long term,\u201d Bethlenfalvy told reporters on Wednesday. \u201cBut defeating this virus, together, that is what\u2019s most important right now.\u201d<\/p>\n<section aria-labelledby=\"moreTopicLabel\" class=\"more-topic\"><button aria-hidden=\"true\" class=\"more-topic__button-prev\" tabindex=\"-1\" title=\"previous\" type=\"button\"\/><button aria-hidden=\"true\" class=\"more-topic__button-next\" tabindex=\"-1\" title=\"next\" type=\"button\"\/><\/section>\n<p>The finance minister\u2019s comments come after the Ontario government took fire from opposition politicians claiming Progressive Conservative Premier Doug Ford was being stingy with spending during the pandemic. The Financial Accountability Office of Ontario had also said in December that, as of September\u2019s end, the province had $12 billion in unallocated contingency funds.<\/p>\n<p>But Bethlenfalvy said Wednesday that the provincial government is putting its contingencies to use.<\/p>\n<p>Since the fall budget, $1.4 billion has been earmarked for a small-business support grant that would provide firms that have been locked down or face significant public-health restrictions with between $10,000 to $20,000 in financial help. Another $869 million has been set aside for hospitals, $609 million to help with the purchase of personal protective equipment and $398 million for the long-term care sector.<\/p>\n<p>Ontario is still projecting it will run a record-setting $38.5-billion deficit for 2020-21, which is unchanged from its November budget forecast.<\/p>\n<\/section>\n<div class=\"ad__section-border article-content__ad-group\">\n<section class=\"ad\">\n<h2 class=\"visually-hidden\">Advertisement<\/h2>\n<div class=\"ad__container\">\n<div class=\"ad__inner\" id=\"ad__inner-2\">\n<div class=\"ad__placeholder\">\n<p> This advertisement has not loaded yet, but your article continues below. <\/p>\n<\/p><\/div><\/div><\/div>\n<\/section>\n<\/div>\n<section class=\"article-content__content-group\">\n<h2 class=\"visually-hidden\">Article content<\/h2>\n<p>However, the province\u2019s long-term borrowing program for the 2020-21 fiscal year is now expected to be about $2.9 billion bigger, which includes $1.5 billion in \u201cpre-borrowing\u201d for next year. Total long-term borrowing for 2020-21 is forecast to be $55.2 billion, although interest on debt is anticipated to be unchanged from last year\u2019s budget, at $12.5 billion.<\/p>\n<p>Net debt is forecast to be approximately $399.5 billion, equal to 47.1 per cent of the province\u2019s economic output, up only slightly from the fall budget.<\/p>\n<p>Even so, Bethlenfalvy noted that much has happened since the province released its budget in November, including record-high numbers of new COVID-19 cases, a provincewide shutdown and the declaration of a second state of emergency.<\/p>\n<p>Ontario\u2019s third-quarter finances said that private-sector forecasters, on average, are now projecting the province\u2019s real gross domestic product to have contracted by 5.9 per cent in 2020, better than the 6.5 per cent forecast in the fall budget. Yet for 2021, Ontario\u2019s economy is now expected to expand by 4.5 per cent, weaker than the 4.9 per cent foreseen in the budget.<\/p>\n<p>Another fiscal update is expected next month, when the province\u2019s 2021 budget is set to be tabled.<\/p>\n<p>\u201cStopping the spread of COVID-19 is not only necessary to protect our health, it is also the most sensible economic policy,\u201d Bethlenfalvy said. \u201cWe will keep doing whatever it takes to protect the people of Ontario, using all our fiscal firepower to take us through this unprecedented crisis.\u201d<\/p>\n<\/section>\n<section class=\"article-content__share-group article-delimiter\" data-evt=\"beforeunload\" data-evt-typ=\"scroll-depth\" data-evt-val=\"{\" control_fields=\"\" of=\"\" page=\"\" viewed=\"\" story=\"\">\n<h2 class=\"visually-hidden\">Share this article in your social network<\/h2>\n<\/section>\n<div class=\"widget article-content__widget-group article-content__widget-group--slot1\">\n<section aria-labelledby=\"TheLogic414441390795166455383623417957680\" class=\"feed-section feed-section--partner-story list-widget--partner-story the-logic\" data-async=\"\">\n<div class=\"widget-title widget-title--partner-story flex-align-center row row--no-padding--left row--no-padding--right\">\n<p> In-depth reporting on the innovation economy from The Logic, brought to you in partnership with the Financial Post. <\/p>\n<\/p><\/div>\n<\/section>\n<\/div>\n<div class=\"widget article-content__widget-group article-content__widget-group--slot2\">\n<section aria-labelledby=\"TopStoriesNewsletter1129835350797318888703218723795627\" class=\"newsletter-widget\" data-account-id=\"b9d3df2fccd108b5eff3c44f573b2cd6\" data-target-list=\"FP_HeadlineNews\" data-widget=\"newsletter\">\n<div class=\"newsletter-widget__body\">\n<h2 id=\"TopStoriesNewsletter1129835350797318888703218723795627\">Top Stories Newsletter<\/h2>\n<p class=\"newsletter-widget__text\">Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.<\/p>\n<div aria-hidden=\"false\" class=\"newsletter-widget__bottom js-form-main\">  <small> By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300 <\/small> <\/div>\n<div aria-hidden=\"true\" class=\"hidden js-submit-success\" id=\"submitSuccessFP_HeadlineNews\">\n<h2 class=\"newsletter__feedback--heading\">Thanks for signing up!<\/h2>\n<p class=\"newsletter-widget__text\">A welcome email is on its way. If you don&#8217;t see it please check your junk folder.<\/p>\n<p class=\"newsletter-widget__text newsletter__feedback--last\">The next issue of Top Stories Newsletter will soon be in your inbox.<\/p>\n<\/p><\/div>\n<p aria-hidden=\"true\" class=\"newsletter-widget__text newsletter__feedback--error hidden js-submit-error\" id=\"submitErrorFP_HeadlineNews\"> We encountered an issue signing you up. Please try again <\/p>\n<\/p><\/div>\n<\/section>\n<\/div>\n<footer aria-label=\"Article Comments\" class=\"article-footer\">\n<section class=\"comments__section\" id=\"comments\">\n<h3 class=\"widget-title comments-anchor\" id=\"comments-area\">Comments<\/h3>\n<p class=\"comments__section-disclaimer\"> Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications\u2014you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings. <\/p>\n<\/section>\n<\/footer>\n<\/div>\n\n<br \/>Ontario spending ticks up by $2.6 billion amid ongoing pressure from pandemic<\/a><br \/>\n<br \/>2021-02-10 22:57:47<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Breadcrumb Trail Links Economy The expenses will be offset mainly with contingency funds, and the province says it has now &#8216;fully allocated&#8217; its $13.3B in pandemic-related response and contingency funds&#8230;<\/p>\n","protected":false},"author":2,"featured_media":7405,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/smartcdn.prod.postmedia.digital\/financialpost\/wp-content\/uploads\/2021\/02\/Peter-Bethlenfalvy-1.png?quality=90&strip=all&w=288","fifu_image_alt":"","footnotes":""},"categories":[31],"tags":[],"class_list":["post-7404","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/7404","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=7404"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/7404\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/7405"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=7404"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=7404"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=7404"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}