Big spenders: Ford government has paid entire $13.3B emergency fund on COVID-19 relief

The Ford government continues to spend big on the pandemic.

It’s out with a fiscal update as Finance Minister Peter Bethlenfalvy detailed government finances in the third quarter on Wednesday.

It shows the government has now spent its entire $13.3 billion contingency fund on COVID-19 relief efforts.

“We are unwavering in our commitment to doing whatever it takes to protect people’s lives and livelihoods in this battle against COVID-19,” Bethlenfalvy said.

“Today’s report on our spending during the third quarter demonstrates that.”

While the province’s deficit is projected to be unchanged since the fall budget at a record $38.5 billion, the document shows the government spent $2.6 billion more than what was outlined in the budget, the remainder of its contingency fund.

The funds were provided to the province from the federal government and Ontario says they have now all been allocated.

#BREAKING – A fiscal update shows the Ford government has now spent its entire $13.3 billion contingency fund on Covid-19 relief efforts. Most of that money ($1.4B) went to pay for the Small Business Support Grant, $398M more was spent on LTC. The deficit unchanged at $38.5B.

— Richard Southern (@RichardCityNews) February 10, 2021

Most of that money ($1.4 billion) went to pay for the “Small Business Support Grant” that sees rewards of up to $20,000 dolled out to struggling small businesses.

The government says it spent an additional $869 million on hospitals for supplies and equipment, $609 for more PPE, and $398 more on long-term-care than what was outlined in the last budget.

The deficit is not rising because the extra $2.6 billion spent was already accounted for in the budget under the contingency fund. The government says it’s topping up that contingency fund by an additional $2.1 billion.

“This hasn’t always happened in Ontario but our government is committed to accountability. After all, this is not the government’s money, it’s your money,” Bethlenfalvy said.

“In a time of uncertainty, especially in a time of uncertainty, it’s important we are clear about our plans. And Premier Doug Ford has been crystal clear; our number one priority remains defeating this virus. Every decision we have made since Spring has been made with a heavy knowledge that lives are on the line.”

It is also taking in $600 million more than forecast, the result of higher tax revenues and federal government transfers. The net debt-to-GDP ratio 47.1 percent in 2020-21; 0.1 percent higher than what was forecast in the last budget.

In December of last year, the province’s Financial Accountability Officer said the pandemic will cost Ontario municipalities $6.8 billion over two years.

It was also revealed at the time that around $12 billion of the pandemic contingency fund had not been spent by the end of the second quarter.

The Ford government says it will deliver its full 2021 budget by the end of March.

It’s why we are spending $25 billion more this year than we did last year. It’s why our government outlined our $45 billion action plan in response to COVID-19 in the fall budget. And it’s why since then, we have been singularly focused on beating this second wave.”

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With files from The Canadian Press