In the final full quarter of Queen Elizabeth II's reign, Her Majesty's Government of Ontario spent nearly $800 million less than planned, according to a new report from the Financial Accountability Office.

The province plans to spend $193 billion over the entire 2022-23 fiscal year. Spending was planned to be $40.7 billion in the first quarter, before ramping up to $43.5 billion in Q2, $44.7 billion in Q3, and $64.1 billion in Q4.

Actual first quarter spending, however, came in at $39.9 billion. That's $776 million less than planned, or 1.9 per cent.

Fluctuations in first-quarter spending are pretty typical, FAO officials noted. The government's actual spending plan hasn't changed at all.

"The FAO uses a different methodology and point-in-time to account for government spending, using data as of June 30, 2022," said Ian Allen, a spokesperson for Treasury Board President Prabmeet Sakaria. "Quarterly variances between planned and actual expenditures and revenues are a normal part of the public sector budgeting process, and do not reflect a change in the government’s overall spending plans.”

Most sectors spent less than planned, the report noted.

"Other programs" ($889 million or 14.3 per cent), education ($195 million 3.2 per cent), post-secondary education ($195 million or nine per cent), and children's and social services ($75 million or 1.7 per cent), led the pack on spending less than had been authorized.

The "other programs" sector includes $584 million less on electricity subsidy programs like the Ontario Electricity Rebate, $186 million less on capital funding for Metrolinx and municipal infrastructure programs, and hundreds of other smaller programs.

The lower-than-expected education spending can largely be explained by a $107 million shortfall in child care, the report said.

Officials, who spoke to reporters on a not-for-attribution basis to respond to technical questions, said the slow rollout of the $10/day national child care program could be the reason why.

The lower spending on post-secondary education is due to a $91 million shortfall in capital grants to post-secondary schools.

The province spent more on health ($319 million or 1.8 per cent), justice (35 million or 2.7 per cent), and interest on debt ($176 million or 5.6 per cent).

The health sector's higher-than-anticipated spending is explained by $353 million more than planned in payments to physicians and $203 million more on capital funding to hospitals and other health care centres.

Despite spending more than planned overall, the province still spent $200 million less than planned on operational support for hospitals, home care, community care, and more.

And like some Canadian homeowners, the government had to fork over more to pay down the interest on its debt. Ontario spent $176 million, or 5.6 per cent, on interest charges because of higher-than-expected rates.

Despite some sectors spending less than was planned in the first quarter, spending as a whole was up from the same time last fiscal year.

The nearly $40 billion spent in Q1 2022-23 was $3.1 billion, or 8.3 per cent, more than last fiscal year.

Health accounts for nearly half of the $3 billion. The biggest line items on that front were $501 million in payments to physicians — likely because so many people waited until this year to go to the doctor, FAO officials said. Public health also spent $341 million more than last year.

Education spent $453 million more, or 8.2 per cent, because of more child-care dollars ($299 million) and school board operating grants ($120 million).

Children's and social services saw a $285 million, or 7.1 per cent, spending boost, mostly accounted for by higher spending on the Ontario Drug Benefit Plan ($124 million), autism supports ($55 million), and Ontario Works ($43 million).

Justice ($138 million) and interest on debt ($480 million) rounded out the biggest spending jumps from 2021-22 to 2022-23.

The government's $4.6 billion contingency fund, which is included in the overall $193 billion spending plan, wasn't touched in the first quarter. Contingency money can't be spent itself. It first has to be transferred to a specific program, but doesn't require additional legislative approval.

-This story was updated at 4:33pm to include a comment from the Treasury Board

Province spent $800 million less than planned in first quarter

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