# EDGAR Filing Document

**Accession Number:** 0000074615
**File Stem:** 0001193125-25-224115
**Filing Date:** 2025-9
**Character Count:** 405413
**Document Hash:** ee977b9a6830826932aef170a0a21e0b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-224115.hdr.sgml**: 20250930

**ACCESSION NUMBER**: 0001193125-25-224115

**CONFORMED SUBMISSION TYPE**: 18-K/A

**PUBLIC DOCUMENT COUNT**: 16

**CONFORMED PERIOD OF REPORT**: 20240331

**FILED AS OF DATE**: 20250930

**DATE AS OF CHANGE**: 20250930

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ONTARIO PROVINCE OF
- **CENTRAL INDEX KEY:** 0000074615
- **STANDARD INDUSTRIAL CLASSIFICATION:** FOREIGN GOVERNMENTS [8888]
- **ORGANIZATION NAME:** International Corp Fin
- **EIN:** 000000000
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** 18-K/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 002-31357
- **FILM NUMBER:** 251358221

**BUSINESS ADDRESS:**
- **STREET 1:** 1 DUNDAS STREET WEST
- **STREET 2:** SUITE 1400
- **CITY:** TORONTO
- **STATE:** A6
- **ZIP:** M5G 1Z3
- **BUSINESS PHONE:** (416) 845-1708

**MAIL ADDRESS:**
- **STREET 1:** 1 DUNDAS STREET WEST
- **STREET 2:** SUITE 1400
- **CITY:** TORONTO
- **STATE:** A6
- **ZIP:** M5G 1Z3

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PROVINCE OF ONTARIO
- **DATE OF NAME CHANGE:** 19911101

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**FORM 18-K** 

For Foreign Governments and Political Subdivisions Thereof

**AMENDMENT NO. 6 TO** 

**ANNUAL REPORT** 

**of** 

## PROVINCE OF ONTARIO
(Canada)

(Name of Registrant)

Date of end of last fiscal year: March 31, 2024

SECURITIES REGISTERED\*

(As of the close of the fiscal year)

---

| | | |
|:---|:---|:---|
| Title of Issue | Amounts as to which<br> registration is effective | Names of exchanges<br> on which registered |
| N/A | N/A | N/A |

---

Name and address of persons authorized to receive notices and

communications from the Securities and Exchange Commission:

Geoff Gartshore

Deputy Consul General/Deputy Head of Mission

Consulate General of Canada

466 Lexington Ave

New York, New York 10017

United States of America

Copies to:

Jason R. Lehner

Shearman & Sterling LLP

Commerce Court West, 199 Bay Street

Suite 4405, P.O. Box 247

Toronto, Ontario, Canada M5L IE8

\* The Registrant is filing this annual report on a voluntary basis.

------

**PROVINCE OF ONTARIO** 

The undersigned registrant hereby amends its Annual Report on Form 18-K for the fiscal year ended March 31, 2024 (the "Annual Report") as follows:

The following additional exhibit is added to the Annual Report:

Exhibit (99.8) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Public Accounts of Ontario: 2024-2025 Annual Report and Consolidated Financial Statements

------

**SIGNATURE** 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this amendment to the annual report to be signed on its behalf by the undersigned, thereunto duly authorized, at Toronto, Ontario.

---

| | | |
|:---|:---|:---|
|  | PROVINCE OF ONTARIO<br> (Name of registrant) | PROVINCE OF ONTARIO<br> (Name of registrant) |
| September 30, 2025 | By: | /s/ Opallycia A. Kandelas |
|  |  | Name: Opallycia A. Kandelas |
|  |  | Title: Director, Treasury and Capital Markets<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operations, Finance and Treasury Division<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ontario Financing Authority |

---

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**Exhibit Index** 

Exhibit (99.8): [Public Accounts of Ontario: 2024-2025 Annual Report and Consolidated Financial Statements](d941512dex998.htm)

## Exhibit 99.8

##### [**Table of Contents**](#toc)
**Exhibit 99.8**![LOGO](g941512g22a01.jpg)

------

##### [**Table of Contents**](#toc)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Treasury Board Secretariat**<br> **Office of the President**<br>Room 4320, Whitney Block<br> 99 Wellesley Street West<br> Toronto, ON M7A 1W3<br> Tel.: 416-327-2333 | **Ministry of Finance**<br> **Office of the Minister**<br>7<sup>th</sup> Floor, Frost Building South<br> 7 Queen's Park Crescent<br> Toronto ON M7A 1Y7<br> Tel.: 416-325-0400 | **Secrétariat du Conseil du Trésor**<br> **Bureau de la présidente**<br>Édifice Whitney, bureau 4320<br> 99, rue Wellesley Ouest<br> Toronto (Ontario) M7A 1W3<br> Tél. : 416 327-2333 | **Ministère des Finances**<br> **Bureau du ministre**<br>7 étage, Édifice Frost Sud<br> 7 Queen's Park Crescent<br> Toronto (Ontario) M7A 1Y7<br> Tél. : 416-325-0400 | ![LOGO](g941512g22a02.jpg) |

---

The Honourable Edith Dumont, OC, OOnt

Lieutenant Governor of Ontario

Legislative Building

Queen's Park

Toronto, ON M7A 1A1

May It Please Your Honour:

The undersigned have the privilege to present the Public Accounts of the Province of Ontario for the fiscal year ended March 31, 2025, in accordance with the requirements of the *Financial Administration Act*.

Respectfully submitted,

---

| | |
|:---|:---|
| Original signed by | Original signed by |
| The Honourable Caroline Mulroney | The Honourable Peter Bethlenfalvy |
| President of the Treasury Board | Minister of Finance |
| Toronto, September 2025 | Toronto, September 2025 |

---

------

##### [**Table of Contents**](#toc)
**Contents** 

---

| | |
|:---|:---|
|  **[Foreword](#toc941512_1)** | **iii** |
|  **[Introduction](#toc941512_2)** | **1** |
|  **[Statement of Responsibility](#toc941512_3)** | **2** |
|  **[Highlights](#toc941512_4)** | **5** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Financial highlights](#toc941512_5) | 6 |
|  **[Analysis of 2024–25 Results](#toc941512_6)** | **9** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Revenue](#toc941512_7) | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Expense](#toc941512_8) | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Statement of financial position analysis](#toc941512_9) | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Financial assets](#toc941512_10) | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Infrastructure expenditures](#toc941512_11) | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Liabilities](#toc941512_12) | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Risks and risk management](#toc941512_13) | 29 |
|  **[Key Financial Ratios](#toc941512_14)** | **31** |
|  **[Fiscal Management](#toc941512_15)** | **33** |
|  **[Non-Financial Activities](#toc941512_16)** | **34** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Health sector](#toc941512_17) | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Education sector](#toc941512_18) | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Postsecondary education sector](#toc941512_19) | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Children's and social services sector](#toc941512_20) | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Justice sector](#toc941512_21) | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Condition and capacity of provincial tangible capital assets](#toc941512_22) | 39 |
|  **[Transparency and Accountability](#toc941512_23)** | **41** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Recent developments in public sector accounting standards](#toc941512_24) | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [The C.D. Howe Institute Fiscal Accountability Report](#toc941512_25) | 41 |

---

---

| | |
|:---|:---|
| **Financial Statement Discussion and Analysis, 2024–2025** | **i** |

---

------

##### [**Table of Contents**](#toc)
**CONSOLIDATED FINANCIAL STATEMENTS** 

---

| | |
|:---|:---|
|  [Auditor's Report](#toc941512_26) | 45 |
|  [Consolidated Statement of Operations](#toc941512_27) | 53 |
|  [Consolidated Statement of Financial Position](#toc941512_28) | 54 |
|  [Consolidated Statement of Change in Net Debt](#toc941512_29) | 55 |
|  [Consolidated Statement of Change in Accumulated Operating Deficit](#toc941512_30) | 56 |
|  [Consolidated Statement of Remeasurement Gains and Losses](#toc941512_31) | 56 |
|  [Consolidated Statement of Cash Flow](#toc941512_32) | 57 |
|  [Notes to the Consolidated Financial Statements](#toc941512_33) | 58 |
|  [Schedules to the Consolidated Financial Statements](#toc941512_34) | 97 |
|  [Guide to the Public Accounts](#toc941512_35) | 117 |
|  [Glossary](#toc941512_36) | 120 |
|  [Sources of Additional Information](#toc941512_37) | 127 |

---

 **ii** **Financial Statement Discussion and Analysis, 2024–2025** 

------

##### [**Table of Contents**](#toc)
**Foreword** 

I am pleased to present the *2024–25 Public Accounts* for the Province of Ontario. The Public Accounts provide the people of Ontario with a clear and comprehensive view of the province's finances.

The government recorded a $1.1 billion deficit for the fiscal year ending March 31, 2025, compared to a forecasted deficit of $9.8 billion in the 2024 Budget. This improvement is a result of higher-than-anticipated tax revenues from strong economic growth and increased revenues from the broader public sector.

This document highlights the efforts our government has taken to deliver on the commitments we set out in the *2024 Ontario Budget: Building a Better Ontario*. Our government has a plan to protect Ontario and transform it into the most competitive place to invest, create jobs and do business in the G7, while investing even more in health care, education and other critical services. We are continuing to rebuild the province's economy by attracting domestic and international manufacturing investments, expanding the province's electricity capacity, supporting innovation and helping small businesses thrive.

The *2024–25 Public Accounts* shows that our government is protecting Ontario's economy, investing $212.1 billion across all programs. This represents an 8.7 per cent or $16.9 billion increase in program spending over the previous fiscal year. These investments are delivering on our government's mission to build for future growth and keep workers on the job in the face of U.S. tariffs and economic uncertainty. We will continue our fiscally responsible approach, prudently managing provincial finances while maintaining our commitment and ability to provide critical financial supports that are required to protect Ontario's economy and support jobs.

With total revenues of $226.2 billion, which is $17.2 billion or 8.2 per cent higher than the previous fiscal year, Ontario's strong economic performances mean we are continuing a clear path back to balance. We are also continuing our prudent approach to managing debt, achieving the targets for all three of our debt sustainability measures. The interest and other debt servicing charges are $1.3 billion lower than the 2024 Budget forecast, and $100 million lower than the interim forecast due to lower overall borrowing costs. This concerted effort is also reflected in Ontario's credit ratings, which were upgraded by both S&P and Morningstar DBRS in 2024. The upgrades help lower our province's borrowing costs and support more investment in Ontario, creating more jobs and financing our historic infrastructure plan.

To protect Ontario's health care system, we're working to deliver even more connected and convenient care for people, when and where they need it. That is why we have made historic investments and increased spending in the health sector by $6.2 billion or 7.2 per cent to provide faster access to services and grow our health care workforce.

In order to build the infrastructure our province needs to support strong and safe communities, keep workers on the job and drive economic growth, infrastructure spending saw an increase of $5.6 billion or 23.9 per cent from the previous year, including investments in health infrastructure, public transit, schools, correctional facilities, broadband and housing.

---

| | |
|:---|:---|
| **Financial Statement Discussion and Analysis, 2024–2025** | **iii** |

---

------

##### [**Table of Contents**](#toc)
This year marks the eighth year in a row that the Public Accounts has received a clean audit opinion from the province's Auditor General.

The results in the *2024–25 Public Accounts* are part of our government's plan to build a more competitive, resilient and self-reliant economy while keeping costs down and protecting workers, businesses and jobs in the face of U.S. tariffs and economic uncertainty.

Original signed by

The Honourable Caroline Mulroney

President of the Treasury Board

 **iv** **Financial Statement Discussion and Analysis, 2024–2025** 

------

##### [**Table of Contents**](#toc)
**Introduction** 

The Annual Report is a key element of the Public Accounts of the Province of Ontario and is central to demonstrating the Province's transparency and accountability in reporting its financial activities and position. Ontario's Consolidated Financial Statements present the financial results for the 2024–25 fiscal year against the *2024 Budget* released on March 26, 2024, and the financial position of the government as of March 31, 2025. As in previous years, the Annual Report also compares the current year's results to the prior year's results and provides a five-year trend analysis for many key financial ratios.

Producing the *Public Accounts of Ontario* requires the teamwork and collaboration of many stakeholders across Ontario's public sector. The Office of the Auditor General plays a critical role in auditing and reporting on the Province's Consolidated Financial Statements, and the Standing Committee on Public Accounts also plays an important role in providing legislative oversight and guidance. I would like to thank everyone for their contributions and collaboration.

We welcome your comments on the Public Accounts. Please share your thoughts by email to infoTBS@ontario.ca, or by writing to the Office of the Provincial Controller, Re: Annual Report, Treasury Board Secretariat, Second Floor, Frost Building South, 7 Queen's Park Crescent, Toronto, Ontario M7A 1Y7.

Original signed by

Carlene Alexander, CPA, CGA, MBA

Deputy Minister and Secretary of the

Treasury Board and Management Board of Cabinet

Treasury Board Secretariat

 **Financial Statement Discussion and Analysis, 2024–2025**<sub>1</sub>

------

##### [**Table of Contents**](#toc)
**Statement of Responsibility** 

The Consolidated Financial Statements are prepared by the Government of Ontario in accordance with the accounting principles for governments issued by the Public Sector Accounting Board (PSAB).

The Consolidated Financial Statements are audited by the Auditor General of Ontario in accordance with the *Auditor General Act,* and with Canadian generally accepted assurance standards. The Auditor General expresses an independent audit opinion on these Consolidated Financial Statements. Her report, which appears on pages 45-51, provides her audit opinion and the basis for this opinion.

Management prepares the Consolidated Financial Statements in accordance with generally accepted accounting principles for the public sector. Management is also responsible for maintaining systems of financial management and internal controls to provide reasonable assurance that transactions recorded in the Consolidated Financial Statements are within statutory authority, assets are properly safeguarded, and reliable financial information is available for preparation of these Consolidated Financial Statements.

---

| | | | |
|:---|:---|:---|:---|
| Original signed by<br>| Original signed by<br>| Original signed by<br>| Original signed by<br>|
| Carlene Alexander,<br> CPA, CGA, MBA | Jason Fitzsimmons | Beili Wong,<br> FCPA, FCA | Khalida Noor,<br> CPA, CA |
| Deputy Minister, Treasury Board Secretariat | Deputy Minister,<br> Ministry of Finance | Comptroller General,<br> Office of the Comptroller General<br> Treasury Board Secretariat | Assistant Deputy Minister <br>and Provincial Controller, <br>Treasury Board Secretariat |
| August 29, 2025 | August 29, 2025 | August 29, 2025 | August 29, 2025 |

---

The Government of Ontario is responsible for the Consolidated Financial Statements and accepts responsibility for the objectivity and integrity of these Consolidated Financial Statements and the Financial Statement Discussion and Analysis. Those charged with governance are responsible for overseeing the Government of Ontario's financial reporting process.

---

| | |
|:---|:---|
| Original signed by  | Original signed by  |
| The Honourable Caroline Mulroney | The Honourable Peter Bethlenfalvy |
| President of the Treasury Board | Minister of Finance |
|  <br> August 29, 2025 | <br> August 29, 2025 |

---

---

| | |
|:---|:---|
| **2** | **Financial Statement Discussion and Analysis, 2024–2025** |

---

------

##### [**Table of Contents**](#toc)

## FINANCIAL STATEMENT DISCUSSION AND ANALYSIS
 **Financial Statement Discussion and Analysis, 2024–2025**<sub>3</sub>

------

##### [**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **4** | **Financial Statement Discussion and Analysis, 2024–2025** |

---

------

##### [**Table of Contents**](#toc)
**Highlights** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **2024–25 Financial Highlights**<br> **($ Billions)** | **2024–25 Financial Highlights**<br> **($ Billions)** | **2024–25 Financial Highlights**<br> **($ Billions)** | **2024–25 Financial Highlights**<br> **($ Billions)** | **2024–25 Financial Highlights**<br> **($ Billions)** | **Table 1** |
| Consolidated Statement of Operations<br> For the fiscal year ended March 31 | Consolidated Statement of Operations<br> For the fiscal year ended March 31 | Consolidated Statement of Operations<br> For the fiscal year ended March 31 | Consolidated Statement of Operations<br> For the fiscal year ended March 31 | Consolidated Statement of Operations<br> For the fiscal year ended March 31 | Consolidated Statement of Operations<br> For the fiscal year ended March 31 |
|  |  |  |  | **Change from** | **Change from** |
|  | ***2024<br>Budget*<sup>1</sup>** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024–25**<br> **Actual** | **2023–24**<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Restated<br>Actual<sup>1</sup>** | ***2024<br>Budget*** | **2023–24<br> Restated<br> Actual** |
|  Total Revenue | **208.2** | **226.2** | **209.0** | **17.9** | **17.2** |
|  **Expense** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Programs** | 200.6 | 212.1 | 195.2 | 11.5 | 16.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Interest and Other Debt Servicing Charges** | 16.5 | 15.1 | 14.5 | (1.3) | 0.7 |
|  **Total Expense** | **217.0** | **227.3** | **209.7** | **10.2** | **17.6** |
|  **Reserve** | 1 | – | – | (1.0) | – |
|  **Annual Deficit<sup>2</sup>** | **(9.8)** | **(1.1)** | **(0.7)** | **8.7** | **(0.4)** |
|  Consolidated Statement of Financial Position<br> As at March 31 | Consolidated Statement of Financial Position<br> As at March 31 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Financial Assets** |  | 144.2 | 142.3 |  | 1.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Liabilities** |  | 571.2 | 552.1 |  | 19.1 |
|  **Net Debt** |  | **(427.1)** | **(409.8)** |  | **(17.3)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Non-Financial Assets** |  | 180 | 163.7 |  | 16.3 |
|  **Accumulated Deficit** |  | **(247.1)** | **(246.1)** |  | **(1.0)** |
|  **Accumulated Deficit is Comprised of:** |  |  |  |  |  |
|  **Accumulated Operating Deficit** |  | (249.2) | (248.5) |  | (0.7) |
|  **Accumulated Remeasurement Gains** |  | 2.2 | 2.4 |  | (0.2) |
|  <sup> 1</sup> Comparatives on Budget and prior year Actuals have been reclassified to be reflected on the same basis as that used to report the Actual current year balances. Actual results for 2023–24 and the Budget are also restated to present interest and investment income separately from the interest and other debt servicing charges. The change in presentation of interest and investment income does not affect the Province's annual deficit or accumulated deficit. Additionally, an accounting policy change regarding the calculation of accrued Corporations Tax revenue was restated for actual results for 2023–24 and the Budget. See Note 17 to the Consolidated Financial Statements.<br> <sup> 2</sup> 2023–24 figure was restated to reflect the accounting policy change regarding the calculation of accrued Corporations Tax revenue, resulting in a $46 million decrease in Corporate Tax revenue and a restated annual deficit of $0.7 billion compared to the previously published deficit of $0.6 billion.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***Note:*** Numbers may not add due to rounding. | <sup>1</sup> Comparatives on Budget and prior year Actuals have been reclassified to be reflected on the same basis as that used to report the Actual current year balances. Actual results for 2023–24 and the Budget are also restated to present interest and investment income separately from the interest and other debt servicing charges. The change in presentation of interest and investment income does not affect the Province's annual deficit or accumulated deficit. Additionally, an accounting policy change regarding the calculation of accrued Corporations Tax revenue was restated for actual results for 2023–24 and the Budget. See Note 17 to the Consolidated Financial Statements.<br> <sup>2</sup> 2023–24 figure was restated to reflect the accounting policy change regarding the calculation of accrued Corporations Tax revenue, resulting in a $46 million decrease in Corporate Tax revenue and a restated annual deficit of $0.7 billion compared to the previously published deficit of $0.6 billion.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***Note:*** Numbers may not add due to rounding. | <sup>1</sup> Comparatives on Budget and prior year Actuals have been reclassified to be reflected on the same basis as that used to report the Actual current year balances. Actual results for 2023–24 and the Budget are also restated to present interest and investment income separately from the interest and other debt servicing charges. The change in presentation of interest and investment income does not affect the Province's annual deficit or accumulated deficit. Additionally, an accounting policy change regarding the calculation of accrued Corporations Tax revenue was restated for actual results for 2023–24 and the Budget. See Note 17 to the Consolidated Financial Statements.<br> <sup>2</sup> 2023–24 figure was restated to reflect the accounting policy change regarding the calculation of accrued Corporations Tax revenue, resulting in a $46 million decrease in Corporate Tax revenue and a restated annual deficit of $0.7 billion compared to the previously published deficit of $0.6 billion.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***Note:*** Numbers may not add due to rounding. | <sup>1</sup> Comparatives on Budget and prior year Actuals have been reclassified to be reflected on the same basis as that used to report the Actual current year balances. Actual results for 2023–24 and the Budget are also restated to present interest and investment income separately from the interest and other debt servicing charges. The change in presentation of interest and investment income does not affect the Province's annual deficit or accumulated deficit. Additionally, an accounting policy change regarding the calculation of accrued Corporations Tax revenue was restated for actual results for 2023–24 and the Budget. See Note 17 to the Consolidated Financial Statements.<br> <sup>2</sup> 2023–24 figure was restated to reflect the accounting policy change regarding the calculation of accrued Corporations Tax revenue, resulting in a $46 million decrease in Corporate Tax revenue and a restated annual deficit of $0.7 billion compared to the previously published deficit of $0.6 billion.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***Note:*** Numbers may not add due to rounding. | <sup>1</sup> Comparatives on Budget and prior year Actuals have been reclassified to be reflected on the same basis as that used to report the Actual current year balances. Actual results for 2023–24 and the Budget are also restated to present interest and investment income separately from the interest and other debt servicing charges. The change in presentation of interest and investment income does not affect the Province's annual deficit or accumulated deficit. Additionally, an accounting policy change regarding the calculation of accrued Corporations Tax revenue was restated for actual results for 2023–24 and the Budget. See Note 17 to the Consolidated Financial Statements.<br> <sup>2</sup> 2023–24 figure was restated to reflect the accounting policy change regarding the calculation of accrued Corporations Tax revenue, resulting in a $46 million decrease in Corporate Tax revenue and a restated annual deficit of $0.7 billion compared to the previously published deficit of $0.6 billion.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***Note:*** Numbers may not add due to rounding. | <sup>1</sup> Comparatives on Budget and prior year Actuals have been reclassified to be reflected on the same basis as that used to report the Actual current year balances. Actual results for 2023–24 and the Budget are also restated to present interest and investment income separately from the interest and other debt servicing charges. The change in presentation of interest and investment income does not affect the Province's annual deficit or accumulated deficit. Additionally, an accounting policy change regarding the calculation of accrued Corporations Tax revenue was restated for actual results for 2023–24 and the Budget. See Note 17 to the Consolidated Financial Statements.<br> <sup>2</sup> 2023–24 figure was restated to reflect the accounting policy change regarding the calculation of accrued Corporations Tax revenue, resulting in a $46 million decrease in Corporate Tax revenue and a restated annual deficit of $0.7 billion compared to the previously published deficit of $0.6 billion.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***Note:*** Numbers may not add due to rounding. |

---

 **Financial Statement Discussion and Analysis, 2024–2025**<sub>5</sub>

------

##### [**Table of Contents**](#toc)
**Financial highlights** 

**Change from 2023–24 Actuals** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Ontario government recorded a $1.1 billion deficit for the fiscal year ended March 31, 2025, compared to
the previous year's restated deficit of $0.7 billion. The $0.4 billion increase in annual deficit is mainly due to higher program expenses and higher interest and other debt servicing charges, partially offset by higher revenues (see
Table 1 above).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Total revenues were $226.2 billion, which is $17.2 billion or 8.2 per cent higher than the previous year,
largely due to increases in taxation revenues, transfers from the Government of Canada, revenues reported by ministries and the broader public sector, as well as one-time revenue from the tobacco legal
settlement. See details on pages 9-10.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Total program expenses were $212.1 billion, which is $16.9 billion or 8.7 per cent higher than the previous
year. Expenses are higher in the:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Health sector mainly to address growing demand for health care services, including for Ontario Health Insurance Plan and
Ontario Public Drug Programs and operating costs for the delivery of health care;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Education sector mainly due to creating more affordable child care spaces through the continued implementation of the
Canada-wide Early Learning and Child Care Agreement, increased school board spending resulting from a rise in third-party revenue and funding to support commitments consistent with labour agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Postsecondary Education sector mainly due to higher college operating costs, higher uptake for student financial
assistance, and to support investments in research and health human resources;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Children's and Social Services sector mainly due to an increase in demand for Ontario Works, primarily resulting from
an increase in the number of asylum seekers arriving in Ontario, as well as funding to support annual inflationary increases to the Ontario Disability Support Program and the Assistance for Children with Severe Disabilities Program, and investments
in the Ontario Autism Program; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Justice sector mainly due to initiatives to provide enhanced policing services across the province, including in First
Nation communities, investments in correctional systems, public safety and transformation of court services delivery, as well as legal settlement costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Other sector mainly to support delivering a $200 taxpayer rebate for each eligible person, as well as higher spending
across various programs such as broadband.

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|:---|:---|
| **6** | **Financial Statement Discussion and Analysis, 2024–2025** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Interest and other debt servicing charges were higher than the previous year **  by $0.7 billion,
or 4.6 per cent, as a result of an increase in the total amount of debt outstanding. See details on page 21.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Non-financial assets increased by $16.3 billion from the previous year, mainly
due to an increase of $16.1 billion in the net book value of Ontario's capital assets, such as buildings, and transportation infrastructure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Total infrastructure expenditure increased by $5.6 billion from the previous year. Increased investments include
public transit, schools, correctional facilities, broadband and housing-enabling infrastructure. Ontario invested $24.5 billion in assets owned by the government and its consolidated entities, which reflect new capital investments and repairs
to existing assets. The government also made $4.7 billion in transfers to non-consolidated partners and other infrastructure expenditures. See details on page 26.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Total liabilities increased by $19.1 billion and total financial assets increased by $1.9 billion, resulting in
an increase of $17.3 billion or 4.2 per cent in net debt from the previous year (see details on page 27). The increase in liabilities is mainly due to an increase in debt. The increase in financial assets is mainly due to an increase
in investments, investments in Government Business Enterprises (GBEs) and year-end derivative revaluations. The accumulated deficit increased by $1.0 billion, or 0.4 per cent, from the previous year,
mainly as a result of the reported deficit of $1.1 billion and lower accumulated remeasurement gains of $2.2 billion.

 **Financial Statement Discussion and Analysis, 2024–2025**<sub>7</sub>

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##### [**Table of Contents**](#toc)
**Change from the *2024 Budget*** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Ontario government recorded a $1.1 billion deficit for the fiscal year ended March 31, 2025, compared to
a forecasted deficit of $9.8 billion in the *2024 Budget*, resulting from increases in taxation revenues and revenues reported by ministries and the broader public sector and lower interest and other debt servicing
charges, partially offset by increases in program expenses due to higher demands and distribution of programs and services. (See Table 1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Total revenues of $226.2 billion, were $17.9 billion or 8.6 per cent higher than planned in the *2024 Budget*, primarily driven by stronger-than-expected revenues from ministries and consolidated government organizations, including the broader public sector; higher net income from GBEs; revenue from the court approved settlement between tobacco
companies and their creditors, including Ontario; and increased taxation revenue based on updated tax assessment data for 2024 and prior years provided by the Canada Revenue Agency (CRA), which reflect stronger-than-expected economic growth in 2024.
See details on page 11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Total program expenses of $212.1 billion, were $11.5 billion or 5.8 per cent higher than in the *2024 Budget*. Program expenses were higher in the:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Health sector mainly to address growing demand and costs for health services, including for the Ontario Health Insurance
Plan, Ontario Public Drug Programs, hospitals and home and community care;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Education sector mainly due to school board funding to support commitments consistent with labour agreements; **  

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Postsecondary Education sector mainly due to higher-than-forecasted college spending resulting from increased enrolment and
associated operating costs, as well as higher-than-expected uptake for student financial assistance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Children's and Social Services sector mainly due to higher-than-expected demand for Ontario Works, primarily
resulting from an increase in the number of asylum seekers arriving in Ontario; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Justice sector mainly due to investments in policing, correctional systems and public safety, as well as legal settlement
costs.

See details on page 18.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Interest and other debt servicing charges were lower than in the *2024 Budget* by $1.3 billion, or 8.2 per
cent, due to lower interest costs on debt outstanding, higher interest income from Ontario's own investments, and an increase in interest capitalization by consolidated entities. See details on page 21.

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| **8** | **Financial Statement Discussion and Analysis, 2024–2025** |

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**Analysis of 2024–25 Results** 

**Revenue** 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Details of 2024–25 Actual Results**<br> **($ Billions)** | **Details of 2024–25 Actual Results**<br> **($ Billions)** | **Details of 2024–25 Actual Results**<br> **($ Billions)** | **Details of 2024–25 Actual Results**<br> **($ Billions)** | **Details of 2024–25 Actual Results**<br> **($ Billions)** | **Table 2** |
|  | | | | **Change from** | **Change from** |
|  |<br>***2024<br>Budget<sup>1</sup>*** |<br> **2024–25<br>Actual** |<br>**2023–24<br> Restated<br>Actual<sup>1</sup>** | ***2024<br> Budget*** | **2023–24<br> Restated<br>Actual** |
|  **Revenue** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Personal Income Tax | 51.9 | 55.7 | 50.8 | 3.8 | 4.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales Tax | 38.8 | 39.4 | 39.9 | 0.5 | (0.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporations Tax | 24.9 | 27.8 | 23.1 | 2.8 | 4.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employer Health Tax | 8.7 | 9.1 | 8.6 | 0.3 | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Education Property Tax | 5.8 | 5.9 | 5.8 | 0.1 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ontario Health Premium | 5 | 5.2 | 5 | 0.2 | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gasoline and Fuel Tax | 2.6 | 2.2 | 2.1 | (0.3) | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Taxes | 6.9 | 6.3 | 6.5 | (0.6) | (0.3) |
| &nbsp;&nbsp; **Total Taxation Revenue** | **144.7** | **151.5** | **141.8** | **6.8** | **9.7** |
| &nbsp;&nbsp; Transfers from Government of Canada | 36.3 | 36.6 | 34.3 | 0.4 | 2.3 |
| &nbsp;&nbsp; Fees, Donations and Other Revenues from Broader Public Sector Organizations | 10.2 | 14.7 | 13.1 | 4.5 | 1.6 |
| &nbsp;&nbsp; Income from Investment in Government Business Enterprises | 6.8 | 7.5 | 7.4 | 0.7 | 0.1 |
| &nbsp;&nbsp; Interest and Investment Income | 2.6 | 2.8 | 3.1 | 0.2 | (0.3) |
| &nbsp;&nbsp; Other Non-Tax Revenue | 7.7 | 13.1 | 9.2 | 5.3 | 3.8 |
| &nbsp;&nbsp; **Total Revenue** | **208.2** | **226.2** | **209.0** | **17.9** | **17.2** |
| &nbsp;&nbsp; <sup>1</sup> Comparatives on Budget and prior year Actuals have been reclassified to be reflected on the same basis as that used to report the Actual current year balances. Actual results for 2023–24 and the Budget are also restated to present interest and investment income separately from the interest and other debt servicing charges**.** The change in presentation of interest and investment income does not affect the Province's annual deficit or accumulated deficit. Additionally, an accounting policy change regarding the calculation of accrued Corporations Tax revenue was restated for actual results for 2023–24 and the Budget. See Note 17 to the Consolidated Financial Statements.<br> *Note:*Numbers may not add due to rounding. | &nbsp;&nbsp; <sup>1</sup> Comparatives on Budget and prior year Actuals have been reclassified to be reflected on the same basis as that used to report the Actual current year balances. Actual results for 2023–24 and the Budget are also restated to present interest and investment income separately from the interest and other debt servicing charges**.** The change in presentation of interest and investment income does not affect the Province's annual deficit or accumulated deficit. Additionally, an accounting policy change regarding the calculation of accrued Corporations Tax revenue was restated for actual results for 2023–24 and the Budget. See Note 17 to the Consolidated Financial Statements.<br> *Note:*Numbers may not add due to rounding. | &nbsp;&nbsp; <sup>1</sup> Comparatives on Budget and prior year Actuals have been reclassified to be reflected on the same basis as that used to report the Actual current year balances. Actual results for 2023–24 and the Budget are also restated to present interest and investment income separately from the interest and other debt servicing charges**.** The change in presentation of interest and investment income does not affect the Province's annual deficit or accumulated deficit. Additionally, an accounting policy change regarding the calculation of accrued Corporations Tax revenue was restated for actual results for 2023–24 and the Budget. See Note 17 to the Consolidated Financial Statements.<br> *Note:*Numbers may not add due to rounding. | &nbsp;&nbsp; <sup>1</sup> Comparatives on Budget and prior year Actuals have been reclassified to be reflected on the same basis as that used to report the Actual current year balances. Actual results for 2023–24 and the Budget are also restated to present interest and investment income separately from the interest and other debt servicing charges**.** The change in presentation of interest and investment income does not affect the Province's annual deficit or accumulated deficit. Additionally, an accounting policy change regarding the calculation of accrued Corporations Tax revenue was restated for actual results for 2023–24 and the Budget. See Note 17 to the Consolidated Financial Statements.<br> *Note:*Numbers may not add due to rounding. | &nbsp;&nbsp; <sup>1</sup> Comparatives on Budget and prior year Actuals have been reclassified to be reflected on the same basis as that used to report the Actual current year balances. Actual results for 2023–24 and the Budget are also restated to present interest and investment income separately from the interest and other debt servicing charges**.** The change in presentation of interest and investment income does not affect the Province's annual deficit or accumulated deficit. Additionally, an accounting policy change regarding the calculation of accrued Corporations Tax revenue was restated for actual results for 2023–24 and the Budget. See Note 17 to the Consolidated Financial Statements.<br> *Note:*Numbers may not add due to rounding. | &nbsp;&nbsp; <sup>1</sup> Comparatives on Budget and prior year Actuals have been reclassified to be reflected on the same basis as that used to report the Actual current year balances. Actual results for 2023–24 and the Budget are also restated to present interest and investment income separately from the interest and other debt servicing charges**.** The change in presentation of interest and investment income does not affect the Province's annual deficit or accumulated deficit. Additionally, an accounting policy change regarding the calculation of accrued Corporations Tax revenue was restated for actual results for 2023–24 and the Budget. See Note 17 to the Consolidated Financial Statements.<br> *Note:*Numbers may not add due to rounding. |

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**Change from 2023–24 Actuals** 

Total revenues for 2024–25 increased by $17.2 billion or 8.2 per cent from the previous year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Taxation revenue increased by $9.7 billion or 6.8 per cent in 2024–25, supported by strong nominal Gross
Domestic Product (GDP) growth of 5.3 per cent in 2024. The change in taxation revenue primarily reflects growth in reported Personal Income Tax (PIT) and Corporations Tax (CT).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Transfers from Government of Canada increased by $2.3 billion or 6.7 per cent in 2024–25, mostly reflecting
higher transfers from major federal funding programs, including Canada Health Transfer, Canada Social Transfer, Equalization, and support for Canada-wide Early Learning and Child Care, Shared Health Priorities and Infrastructure Programs.

 **Financial Statement Discussion and Analysis, 2024–2025**<sub>9</sub>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Fees, donations and other revenues from broader public sector organizations (BPS) increased by $1.6 billion or
12.5 per cent in 2024–25, mainly due to higher third-party revenue from hospitals reflecting higher revenue from fees, ancillary services, donations, research grants, and other miscellaneous revenues.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Income from Government Business Enterprises increased by 0.5 per cent in 2024–25. This performance was primarily
driven by higher net income from Ontario Power Generation (OPG), Hydro One Ltd. (HOL), iGaming Ontario (iGO), and the Ontario Cannabis Retail Corporation (OCRC). These gains were largely offset by a decline in net income from the Liquor Control
Board of Ontario (LCBO) and the Ontario Lottery and Gaming Corporation (OLG).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Interest and investment income decreased by $0.3 billion or 9.7 per cent, mainly due to lower interest rates
compared to last year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Other non-tax revenue increased by $3.8 billion or 41.2 per cent in
2024–25, mainly due to one-time revenue from the tobacco legal settlement and higher recoveries of prior-year expenditures.

![LOGO](g941512g22a13.jpg)

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| **10** | **Financial Statement Discussion and Analysis, 2024–2025** |

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**Change from the *2024 Budget*** 

Revenues for 2024–25 were $17.9 billion or 8.6 per cent higher than expected in the *2024 Budget*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Taxation revenues were $6.8 billion or 4.7 per cent higher than forecasted in the *2024 Budget*, mainly due
to stronger-than-expected CT, PIT, and the Ontario Health Premium (OHP), based on updated tax assessment data for 2024 and prior years from the CRA. Also contributing to higher revenues was Sales Tax, reflecting upward revisions to official federal
HST entitlement estimates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Transfers from the Government of Canada were $0.4 billion or 1.1 per cent higher, mainly due to higher transfers
to the hospital sector and the signing of several new agreements, such as the National Strategy for Drugs for Rare Diseases. This was partially offset by the reprofiling of funding under the Canada-wide Early Learning and Child Care Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Fees, donations, and other revenues from BPS were $4.5 billion or 43.6 per cent higher, mainly due to
higher-than-expected third-party revenue from BPS hospitals and colleges. For hospitals, the increase reflects stronger revenue from fees, ancillary services, donations, research grants, and other miscellaneous sources. Colleges reported higher
third-party revenue largely due to higher-than-expected international student enrollment. This was supported by the federal government's continued issuance of visas to existing cohorts of international students from prior years, enabling them
to advance through their multi-year academic programs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Income from GBEs was $0.7 billion or 10.0 per cent higher, mainly reflecting higher-than-expected net income from
OPG, iGO, HOL and the OCRC. This was partially offset by lower net income from the OLG and the LCBO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Interest and investment income increased by $0.2 billion or 9.2 per cent, mainly due to higher than forecast
interest revenue reported by consolidated entities, particularly hospitals and colleges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Other non-tax revenues increased by $5.3 billion or 69.0 per cent mainly
reflecting revenue reported in 2024–25 from the court approved settlement between tobacco companies and their creditors, including Ontario, higher recoveries of prior-year expenditures, and higher-than-expected revenue from fees, licences,
permits, and other miscellaneous revenues reported by ministries and consolidated government organizations.

 **Financial Statement Discussion and Analysis, 2024–2025**<sub>11</sub>

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**Revenue trend** 

Chart 2 shows the recent trends in revenue for Ontario's major revenue sources.

![LOGO](g941512g22a14.jpg)

**Taxation revenue** 

Between 2020–21 and 2024–25 taxation revenue grew at an average annual rate of 8.1 per cent, higher than the average annual rate of nominal GDP growth of 7.7 per cent.

Although economic growth and taxation revenue growth are closely linked, the relationship is affected by several factors, including but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;● Growth in some revenue sources, such as Corporations Tax and Mining Tax, which can diverge significantly from economic
growth in any given year due to the inherent volatility of business profits as well as the use of tax provisions, such as the option to carry losses forward or backward;

&nbsp;&nbsp;&nbsp;&nbsp;● The impact of housing completions and resales on HST and Land Transfer Tax revenue, which is proportionately greater than
their contribution to GDP; and

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| **12** | **Financial Statement Discussion and Analysis, 2024–2025** |

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&nbsp;&nbsp;&nbsp;&nbsp;● Changes in volume-based gasoline and fuel taxes which are more closely aligned to growth in real GDP as opposed to nominal
GDP since these revenue sources are not directly influenced by price changes.

**Federal government transfers** 

Between 2020–21 and 2024–25, Government of Canada transfers grew at an annual average rate of 1.9 per cent. This reflects existing federal-provincial funding arrangements and formulas. These include major federal transfers such as Canada Health Transfer, Canada Social Transfer and Equalization. There are also a number of federal transfers to the Province which are largely program-specific, such as Canada-wide Early Learning and Child Care, Shared Health Priorities, Infrastructure and Labour Market Development. Some transfers are ongoing while others are time-limited.

**Fees, donations and other revenues from BPS** 

Between 2020–21 and 2024–25 revenue from BPS increased at an average annual rate of 17.2 per cent. This increase mainly reflects lower third-party revenues in 2020–21 attributable to the impact of the COVID-19 pandemic.

**Income from Investment in Government Business Enterprises** 

Income from GBEs includes OPG, HOL, LCBO, OLG, OCRC and iGO.

Between 2020–21 and 2024–25, income from GBEs increased at an annual average rate of 10.5 percent.

**Interest and investment income** 

Interest and investment income refers to all interest and investment income earned from third parties.

Interest and investment income increased at an annual average rate of 38.1 per cent between 2020–21 and 2024–25.

**Other non-tax revenues** 

Other non-tax revenues are generated from a variety of sources, including the sale and rental of goods and services; fees, licences, and permits; reimbursements for provincial expenditures related to specific service delivery; royalties from the use of Crown resources; and recoveries from power supply contracts.

&nbsp;&nbsp;&nbsp;&nbsp;● Other non-tax revenues increased at an annual average rate of 15.4 per cent
between 2020–21 and 2024–25. This increase reflects revenue in 2024–25 from the court approved settlement between tobacco companies and their creditors, including Ontario, as well as lower revenues in 2020–21 attributable to
the impact of the COVID-19 pandemic.

 **Financial Statement Discussion and Analysis, 2024–2025**<sub>13</sub>

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##### [**Table of Contents**](#toc)
**Expense** 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  **Details of 2024–25 Actual Results**<br> **($ Billions)** | **Details of 2024–25 Actual Results**<br> **($ Billions)** | **Details of 2024–25 Actual Results**<br> **($ Billions)** | **Details of 2024–25 Actual Results**<br> **($ Billions)** | **Details of 2024–25 Actual Results**<br> **($ Billions)** | **Table 3** |
|  | | | | **Change from** | **Change from** |
|  |<br>***2024 Budget*<sup>1,2</sup>** |<br> **2024–25<br>Actual** |<br>**2023–24<br>Restated Actual<sup>2</sup>** | ***2024<br>Budget*** | **2023–24**<br> **Restated Actual** |
| &nbsp;&nbsp; **Expense** |  |  |  |  |  |
| &nbsp;&nbsp; Health sector | 85 | 91.6 | 85.5 | 6.7 | 6.2 |
| &nbsp;&nbsp; Education sector<sup>1</sup> | 37.6 | 38.4 | 37.2 | 0.8 | 1.2 |
| &nbsp;&nbsp; Postsecondary education sector | 12.2 | 14.1 | 13.2 | 2 | 0.9 |
| &nbsp;&nbsp; Children's and social services sector | 19.9 | 20.7 | 19.4 | 0.8 | 1.3 |
| &nbsp;&nbsp; Justice sector | 5.9 | 7.2 | 6 | 1.3 | 1.2 |
| &nbsp;&nbsp; Other programs | 40 | 40 | 33.9 | – | 6.1 |
| &nbsp;&nbsp; **Total Program Expense** | **200.6** | **212.1** | **195.2** | **11.5** | **16.9** |
| &nbsp;&nbsp; Interest and Other Debt Servicing Charges | 16.5 | 15.1 | 14.5 | (1.3) | 0.7 |
| &nbsp;&nbsp; **Total Expense** | **217.0** | **227.3** | **209.7** | **10.2** | **17.6** |
| &nbsp;&nbsp; Reserve | 1 | – | – | **(1.0)** | – |
| &nbsp;&nbsp; <sup>1</sup> Ontario Teachers' Pension Plan impact is included in Other programs to align with the presentation in Table 3.8 of the *2024 Budget*. In the Consolidated Financial Statements, this item appears under the Education sector. Schedule 4 to the Consolidated Financial Statements provides details.<br><sup>2</sup> Comparatives on Budget and prior year Actuals have been reclassified to be reflected on the same basis as that used to report the Actual current year balances. Actual results for 2023–24 and the Budget are also restated to present interest and investment income separately from the interest and other debt servicing charges. The change in presentation of interest and investment Income does not affect the Province's annual deficit or accumulated deficit. See Note 17 to the Consolidated Financial Statements.<br>*Note:* Numbers may not add due to rounding. | &nbsp;&nbsp; <sup>1</sup> Ontario Teachers' Pension Plan impact is included in Other programs to align with the presentation in Table 3.8 of the *2024 Budget*. In the Consolidated Financial Statements, this item appears under the Education sector. Schedule 4 to the Consolidated Financial Statements provides details.<br><sup>2</sup> Comparatives on Budget and prior year Actuals have been reclassified to be reflected on the same basis as that used to report the Actual current year balances. Actual results for 2023–24 and the Budget are also restated to present interest and investment income separately from the interest and other debt servicing charges. The change in presentation of interest and investment Income does not affect the Province's annual deficit or accumulated deficit. See Note 17 to the Consolidated Financial Statements.<br>*Note:* Numbers may not add due to rounding. | &nbsp;&nbsp; <sup>1</sup> Ontario Teachers' Pension Plan impact is included in Other programs to align with the presentation in Table 3.8 of the *2024 Budget*. In the Consolidated Financial Statements, this item appears under the Education sector. Schedule 4 to the Consolidated Financial Statements provides details.<br><sup>2</sup> Comparatives on Budget and prior year Actuals have been reclassified to be reflected on the same basis as that used to report the Actual current year balances. Actual results for 2023–24 and the Budget are also restated to present interest and investment income separately from the interest and other debt servicing charges. The change in presentation of interest and investment Income does not affect the Province's annual deficit or accumulated deficit. See Note 17 to the Consolidated Financial Statements.<br>*Note:* Numbers may not add due to rounding. | &nbsp;&nbsp; <sup>1</sup> Ontario Teachers' Pension Plan impact is included in Other programs to align with the presentation in Table 3.8 of the *2024 Budget*. In the Consolidated Financial Statements, this item appears under the Education sector. Schedule 4 to the Consolidated Financial Statements provides details.<br><sup>2</sup> Comparatives on Budget and prior year Actuals have been reclassified to be reflected on the same basis as that used to report the Actual current year balances. Actual results for 2023–24 and the Budget are also restated to present interest and investment income separately from the interest and other debt servicing charges. The change in presentation of interest and investment Income does not affect the Province's annual deficit or accumulated deficit. See Note 17 to the Consolidated Financial Statements.<br>*Note:* Numbers may not add due to rounding. | &nbsp;&nbsp; <sup>1</sup> Ontario Teachers' Pension Plan impact is included in Other programs to align with the presentation in Table 3.8 of the *2024 Budget*. In the Consolidated Financial Statements, this item appears under the Education sector. Schedule 4 to the Consolidated Financial Statements provides details.<br><sup>2</sup> Comparatives on Budget and prior year Actuals have been reclassified to be reflected on the same basis as that used to report the Actual current year balances. Actual results for 2023–24 and the Budget are also restated to present interest and investment income separately from the interest and other debt servicing charges. The change in presentation of interest and investment Income does not affect the Province's annual deficit or accumulated deficit. See Note 17 to the Consolidated Financial Statements.<br>*Note:* Numbers may not add due to rounding. | &nbsp;&nbsp; <sup>1</sup> Ontario Teachers' Pension Plan impact is included in Other programs to align with the presentation in Table 3.8 of the *2024 Budget*. In the Consolidated Financial Statements, this item appears under the Education sector. Schedule 4 to the Consolidated Financial Statements provides details.<br><sup>2</sup> Comparatives on Budget and prior year Actuals have been reclassified to be reflected on the same basis as that used to report the Actual current year balances. Actual results for 2023–24 and the Budget are also restated to present interest and investment income separately from the interest and other debt servicing charges. The change in presentation of interest and investment Income does not affect the Province's annual deficit or accumulated deficit. See Note 17 to the Consolidated Financial Statements.<br>*Note:* Numbers may not add due to rounding. |

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**Change from 2023–24 Actuals** 

Total program expenses for 2024–25 increased by $16.9 billion or 8.7 per cent, from $195.2 billion in the previous fiscal year to $212.1 billion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Health sector expense increased by $6.2 billion or 7.2 per cent over the previous fiscal year, mainly due to
increased spending in base health sector programs to meet growing demand of Ontarians. Key health sector investments included:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● $2.8 billion in additional funding, primarily to support increased utilization of health care services in response to
Ontario's growing population, including increased costs and spending on physician services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● $1.0 billion in higher spending by hospitals driven by program growth, the expansion of service delivery capacity, and
increased demand for services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● $0.8 billion in additional funding for hospitals to respond to Ontario's aging and growing population;

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| **14** | **Financial Statement Discussion and Analysis, 2024–2025** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● $0.5 billion in additional funding, primarily to support increased utilization of the Ontario Public Drug Programs,
including expanding access to new drugs by introducing new drugs onto the drug formularies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● $0.5 billion in additional funding, for health sector programs, including primary care teams, medical training and
education, and supports to health human resources; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● $0.7 billion in additional Long-Term Care Staffing Plan investments to improve average direct hours of care for
long-term care residents and support training and education programs in the long-term care sector.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Education sector expenses increased by $1.2 billion or 3.3 per cent over the previous fiscal year. This is mainly
due to the continued implementation of the Canada-wide Early Learning and Child Care Agreement that reduces average out-of-pocket child care fees, increased school board
spending resulting from a rise in third-party revenue from sources such as fundraising and community use of schools, and funding to support commitments consistent with labour agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Postsecondary education sector expenses increased by $0.9 billion or 6.9 per cent over the previous fiscal year.
This is mainly due to higher college operating costs, the introduction of the new Postsecondary Education Sustainability Fund in 2024–25, to help sustain the sector, higher uptake for student financial assistance, and to support investments in
research and health human resources.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Children's and social services sector expenses increased by $1.3 billion or 6.8 per cent over the previous
fiscal year, primarily due to investments to improve access to services such as the Ontario Autism Program, as well as an increase in demand for Ontario Works, mainly resulting from an increase in the number of asylum seekers, and funding to support
annual inflationary increases for the Ontario Disability Support Program and the Assistance for Children with Severe Disabilities Program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Justice sector expenses increased by $1.2 billion or 19.7 per cent over the previous fiscal year. This is mainly
due to investments in essential service delivery and infrastructure for public safety, including First Nations policing, the Ontario Provincial Police, courts, corrections, fire protection services and police air support, as well as legal settlement
costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Other programs expenses increased by $6.1 billion or 18.0 per cent over the previous fiscal year, mostly
reflecting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● $3 billion increase to support a $200 taxpayer rebate to each eligible person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● $0.8 billion increase due to legal settlement costs related to ongoing claims by Indigenous communities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● $0.8 billion increase primarily due to investments in the Broadband and Cellular Infrastructure, and housing-enabling
infrastructure;

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| **Financial Statement Discussion and Analysis, 2024–2025** | **15** |

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##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● $0.5 billion increase in energy-related expenses, primarily due to higher costs to deliver the suite of electricity
price mitigation programs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● $0.4 billion increase in support for strategic economic development investments.

See Chart 3 for details of program expenses by sector.

![LOGO](g941512g22a15.jpg)

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| **16** | **Financial Statement Discussion and Analysis, 2024–2025** |

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##### [**Table of Contents**](#toc)
Chart 4 shows spending by type of expense. Government spending related to salaries and benefits includes those expenses for organizations consolidated as part of the government reporting entity, including hospitals, school boards, colleges and children's aid societies, as well as the Ontario Public Service.

![LOGO](g941512g22a16.jpg)

The expense labelled "Transfers" in Chart 4 reflects payments to a variety of service providers that support the delivery of public services. These third-party funding recipients consist of health care professionals including physicians, social service agencies, universities, child care providers and municipalities. As service providers, a large share of the spending of these third parties typically goes to salaries and benefits, i.e., compensation-related costs. Transfers do not include transfers to hospitals, school boards, colleges, and children's aid societies — these are reflected in expense types such as operating costs and salaries and benefits, as reported by the organizations.

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| **Financial Statement Discussion and Analysis, 2024–2025** | **17** |

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##### [**Table of Contents**](#toc)
**Change from the *2024 Budget*** 

Total program spending for 2024–25 was $212.1 billion, which is $11.5 billion or 5.8 per cent higher than in the *2024 Budget*. Changes in program spending were primarily attributed to the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Health sector expense was $6.7 billion or 7.9 per cent above plan, mainly to address pressures related to
compensation costs for the delivery of health care, and to address growing demand for other health services, such as utilization-driven programs like the Ontario Health Insurance Plan and the Ontario Drug Benefit Program. This also includes
additional funding to support operating costs for hospitals and home and community care. This variance also reflects a decrease in Long-Term Care, primarily from lower than expected operational costs due to bed count changes, and reduced development
spending due to updated timelines and construction schedules for development and redevelopment projects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Education sector expense was $0.8 billion or 2.0 per cent above plan, primarily due to funding to support
commitments consistent with labour agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Postsecondary education sector expense was $2.0 billion or 16.1 per cent above plan, mainly due to
higher-than-forecasted college spending resulting from increased enrolment and associated operating costs, as well as higher-than-expected uptake for student financial assistance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Children's and social services sector expense was $0.8 billion or 4.1 per cent above plan, primarily
because of higher-than-expected demand for Ontario Works, due to an increase in the number of asylum seekers arriving in Ontario, and increased funding to address operational costs for organizations that support vulnerable populations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Justice sector expense was $1.3 billion or 22.9 per cent above plan, primarily due to investments in essential
service delivery, including First Nations policing, the Ontario Provincial Police, courts, corrections, animal welfare services, coroner and forensic pathology services and police air support, as well as legal settlement costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Other programs expense was consistent with plan, mainly due to the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● $3 billion increase to support a $200 taxpayer rebate for each eligible person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● $0.8 billion increase due to legal settlement costs related to ongoing claims by Indigenous communities.

Partially offset by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● $1.5 billion decrease in contingency funds that were used during the fiscal year to fund program expenses in the
various sectors for emerging needs and unforeseen events;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● $1.3 billion decrease, primarily due to updated construction schedules for programs such as the Broadband and Cellular
Infrastructure Program and Transit-Oriented Communities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● $1 billion decrease due to delays in strategic economic development projects and industrial land development.

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| **18** | **Financial Statement Discussion and Analysis, 2024–2025** |

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**Expense trend** 

Chart 5 shows the recent trends in spending for major program areas.

![LOGO](g941512g22a17.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Health sector expense increased from $69.5 billion in 2020–21 to $91.6 billion in 2024–25, or on
average by 7.2 per cent per year. The increase includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Support for Ontario hospitals to scale up capacity and better meet patient needs to provide greater access to high-quality
care;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Investments to address growing demand for health services, including increased use of new drug therapies and higher demand
for Ontario drug programs, as well as more physician visits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Additional funding to improve and transform home and community care services and improved access to mental health and
addictions services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Funding for health human resources to strengthen the existing workforce and support the recruitment and retention of health
care providers; and

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| **Financial Statement Discussion and Analysis, 2024–2025** | **19** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Support for long-term care homes through increased investments in the Long-Term Care Staffing Plan, operating funding and
the Construction Funding Subsidy Top-Up to address sector waitlists and advance construction of new and redeveloped beds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Education sector expense increased from $31.3 billion in 2020–21 to $38.4 billion in 2024–25,
or on average by 5.2 per cent per year. The increase is mainly due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Implementing the Canada-wide Early Learning and Child Care system;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Building, expanding and renewing schools to foster safe, healthy, accessible and supportive learning environments; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Providing funding to support enrolment growth and commitments consistent with labour agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Postsecondary education sector expense increased from $9.8 billion in 2020–21 to $14.1 billion in
2024–25, or on average by 9.5 per cent per year. This increase is primarily driven by higher college spending resulting from increased enrolment and associated operating costs. It also reflects greater investment in capital grants
aimed at helping colleges and universities modernize their infrastructure through technology upgrades and essential repairs, higher uptake for student financial assistance and increased spending on research infrastructure. In addition, the new
Postsecondary Education Sustainability Fund was introduced in 2024–25.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Children's and social services sector expense increased from $17.4 billion in 2020–21 to
$20.7 billion in 2024–25, or on average by 4.5 per cent per year. This increase primarily reflects:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Higher social assistance funding to address demand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Increases to the monthly core allowances for the Ontario Disability Support Program and the maximum monthly amount for the
Assistance for Children with Severe Disabilities Program; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Investments to support client needs in the Ontario Autism Program and Developmental Services program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Justice sector expense increased from $4.8 billion in 2020–21 to $7.2 billion in 2024–25, or on
average by 11.0 per cent per year. The increase is primarily due to investments in essential service delivery including First Nations policing, the Ontario Provincial Police, courts, corrections, fire protection services and police air
support, as well as legal settlement costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Other programs expenses increased from $36.3 billion in 2020–21 to $40.0 billion in 2024–25, or on
average by 2.5 per cent per year. The increase is primarily due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Legal settlement costs related to ongoing claims by Indigenous communities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Higher investments to support municipal community infrastructure and Broadband and Cellular Infrastructure.

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| **20** | **Financial Statement Discussion and Analysis, 2024–2025** |

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**Interest and Other Debt Servicing Charges** 

Interest and other debt servicing charges expense increased from $14.5 billion in 2023–24 to $15.1 billion in 2024–25 as a result of an increase in the total amount of debt outstanding.

Interest and other debt servicing charges expense was $1.3 billion below plan from the *2024 Budget* in 2024–25, due to lower interest costs on general debt, higher interest income from Ontario's own investments, and an increase in interest capitalization by consolidated entities.

Chart 6 shows that the ratio of Net Interest-to-Operating Revenue has fallen for Ontario over the period between 2020–21 to 2024–25, from a high of 7.5 per cent in 2020–21 to the current level of 5.5 per cent.

![LOGO](g941512g22a18.jpg)

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| **Financial Statement Discussion and Analysis, 2024–2025** | **21** |

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**Statement of financial position analysis** 

**Financial assets** 

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|:---|:---|:---|:---|:---|:---|
|  **Financial Assets**<br> **($ Billions)** | | | | | **Table 4** |
|  | **2024–25<br>Actual** | **% of Total** | **2023–24<br> Restated<br>Actual<sup>1</sup>** | **% of Total** | **Variance<br>Increase<br>(Decrease)** |
|  Cash and cash equivalents | 33.9 | 23.5% | 41.5 | 29.2% | (7.6) |
|  Portfolio investments | 32.3 | 22.4% | 25.9 | 18.2% | 6.4 |
|  Accounts receivable | 22.8 | 15.8% | 24.2 | 17.0% | (1.4) |
|  Loans receivable | 12.1 | 8.4% | 11.9 | 8.4% | 0.2 |
|  Derivative assets | 6.1 | 4.2% | 4.5 | 3.2% | 1.6 |
|  Other assets | 1 | 0.7% | 1.1 | 0.8% | (0.1) |
|  Investment in Government Business Enterprises | 36 | 25.0% | 33.2 | 23.3% | 2.8 |
|  **Total Financial Assets** | **144.2** | **100%** | **142.3** | **100%** | **1.9** |
|  <sup> 1</sup> Comparatives on prior year Actuals have been reclassified to be reflected on the same basis as that used to report the Actual current year balances. Actual results for 2023–24 are also restated to reflect an accounting policy change regarding the calculation of accrued Corporations Tax revenue, including the impact to Accounts receivable. See Note 17 to the Consolidated Financial Statements.<br>*Note:* Numbers may not add due to rounding. | <sup>1</sup> Comparatives on prior year Actuals have been reclassified to be reflected on the same basis as that used to report the Actual current year balances. Actual results for 2023–24 are also restated to reflect an accounting policy change regarding the calculation of accrued Corporations Tax revenue, including the impact to Accounts receivable. See Note 17 to the Consolidated Financial Statements.<br>*Note:* Numbers may not add due to rounding. | <sup>1</sup> Comparatives on prior year Actuals have been reclassified to be reflected on the same basis as that used to report the Actual current year balances. Actual results for 2023–24 are also restated to reflect an accounting policy change regarding the calculation of accrued Corporations Tax revenue, including the impact to Accounts receivable. See Note 17 to the Consolidated Financial Statements.<br>*Note:* Numbers may not add due to rounding. | <sup>1</sup> Comparatives on prior year Actuals have been reclassified to be reflected on the same basis as that used to report the Actual current year balances. Actual results for 2023–24 are also restated to reflect an accounting policy change regarding the calculation of accrued Corporations Tax revenue, including the impact to Accounts receivable. See Note 17 to the Consolidated Financial Statements.<br>*Note:* Numbers may not add due to rounding. | <sup>1</sup> Comparatives on prior year Actuals have been reclassified to be reflected on the same basis as that used to report the Actual current year balances. Actual results for 2023–24 are also restated to reflect an accounting policy change regarding the calculation of accrued Corporations Tax revenue, including the impact to Accounts receivable. See Note 17 to the Consolidated Financial Statements.<br>*Note:* Numbers may not add due to rounding. | <sup>1</sup> Comparatives on prior year Actuals have been reclassified to be reflected on the same basis as that used to report the Actual current year balances. Actual results for 2023–24 are also restated to reflect an accounting policy change regarding the calculation of accrued Corporations Tax revenue, including the impact to Accounts receivable. See Note 17 to the Consolidated Financial Statements.<br>*Note:* Numbers may not add due to rounding. |

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Financial assets consist of items that include cash and cash equivalents and portfolio investments that are available to the government to meet its expenditure needs; accounts and loans receivable, which are amounts it expects to receive from third parties; and other items including derivative assets and investment in GBEs.

Total financial assets increased by $1.9 billion in 2024–25 over the prior fiscal year. The increase was attributable to a (see Table 4):

&nbsp;&nbsp;&nbsp;&nbsp;● $6.4 billion increase in portfolio investments, mainly due to new investments by the Province and hospitals; and

&nbsp;&nbsp;&nbsp;&nbsp;● $2.8 billion increase in investment in GBEs, mainly due to the net income increase from Ontario Power Generation.

&nbsp;&nbsp;&nbsp;&nbsp;● $1.6 billion increase in derivative assets, mainly driven by the year-end revaluation of existing contracts.

These increases in 2024–25 are partially offset by:

&nbsp;&nbsp;&nbsp;&nbsp;● $7.6 billion lower in cash and cash equivalents primarily due to purchases of new portfolio investments and capital
assets acquisitions by hospitals.

&nbsp;&nbsp;&nbsp;&nbsp;● $1.4 billion lower in Account Receivable primarily due to decrease in Harmonized Sales Tax and Personal Income Tax
receivables, partially offset by the recognition of Tobacco claim payments.

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Chart 7 shows the recent trends in financial assets for the government.

![LOGO](g941512g22a19.jpg)

The level of financial assets, including cash, accounts receivable and portfolio investments tends to be more variable, since these assets year-over-year often reflect specific circumstances at the fiscal year-end such as pre-borrowing for the following period's needs.

Total investment in GBEs has increased relatively steadily since 2020–21. The net increases were mainly due to the increases in net assets in GBEs, including Ontario Power Generation net income and investment earnings from the Ontario Nuclear Funds for nuclear waste management and decommissioning.

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| **Financial Statement Discussion and Analysis, 2024–2025** | **23** |

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##### [**Table of Contents**](#toc)
**Tangible capital assets** 

The government is responsible for a large portfolio of non-financial assets, which is almost entirely made up of tangible capital assets.

Tangible capital assets owned by the government and its consolidated entities represent the largest component of Ontario's infrastructure investments. These assets include those it owns directly, such as provincial highways, transit systems, as well as the assets of hospitals, school boards, colleges, children's aid societies, and agencies that are consolidated in its financial statements. The assets of GBEs are reflected in Ontario's statement of financial position as an investment in GBEs under financial assets.

The reported net book value of Ontario's tangible capital assets was $177.8 billion in 2024–25, increasing by $16.1 billion, or 10.0 per cent over the prior fiscal year. Buildings, including hospitals, schools and college facilities, make up the single largest share at $78.2 billion in aggregate. The total on the balance sheet also includes assets under construction, some of which are being built using the public private partnership (P3) model, in which the private sector finances the assets during construction. The impacts of P3s on balance sheet liabilities are discussed in the Other Long-Term Financing section.

Growth in the net book value of capital assets has averaged 7.6 per cent annually over the period between 2020–21 and 2024–25. Most of the growth has been in new and rehabilitated buildings within the province, transportation infrastructure including provincial highways and bridges, and the provincial transit network owned by Metrolinx, an agency of the government.

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| **24** | **Financial Statement Discussion and Analysis, 2024–2025** |

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See Chart 8 for the recent trends in the net book value of provincial tangible capital assets by sector.

![LOGO](g941512g22a20.jpg)

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| **Financial Statement Discussion and Analysis, 2024–2025** | **25** |

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##### [**Table of Contents**](#toc)
**Infrastructure expenditures** 

Ontario's infrastructure spending in 2024–25 was $29.2 billion (see Table 5). This includes $24.5 billion invested in assets owned by the government and its consolidated entities as discussed in the Tangible Capital Assets section, and $4.7 billion provided for capital investment to non-consolidated partners such as universities and municipalities as well as other infrastructure expenditures.

Total infrastructure spending in 2024–25 was $5.6 billion higher than the previous year, with increased expenditures across all sectors, excluding the Postsecondary Education sector. Increased investments include health infrastructure, public transit, schools, correctional facilities, broadband and housing-enabling infrastructure, partially offset by decreased spending in the Postsecondary Education sector.

The 2024–25 total is in line with the $29.2 billion set out in the *2024 Budget*, reflecting increases in the Transportation, Education, and Health sectors offset by decreases in the Postsecondary Education and Other sectors.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Infrastructure expenditures, 2024–25**<br> **($ Billions)** | **Infrastructure expenditures, 2024–25**<br> **($ Billions)** | **Infrastructure expenditures, 2024–25**<br> **($ Billions)** | | **Table 5** |
| **Sector** | **Investment in<br>Capital Assets<sup>1</sup>** | **Transfers and Other<br>Infrastructure<br>Expenditures<sup>2</sup>** | **Total Infrastructure<br>Expenditures** | ***2024 Budget*** **<br> Total Infrastructure <br>Expenditures** |
|  Transportation and transit | 14.3 | 1.2 | 15.5 | 14.8 |
|  Health | 4 | 0.4 | 4.4 | 3.9 |
|  Education | 3.7 | 0.2 | 3.9 | 3.4 |
|  Postsecondary education | 0.7 | 0.2 | 0.9 | 1 |
|  Other sectors<sup>3</sup> | 1.8 | 2.8 | 4.6 | 6.2 |
|  **Totals<sup>4,5</sup>** | **24.5** | **4.7** | **29.2** | **29.2** |

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<sup>1</sup> Includes adjustments for the net book value of assets disposed during the year, as well as changes in valuation.

<sup>2</sup> Mainly transfers for capital purposes to municipalities and universities and expenditure for capital repairs.

<sup>3</sup> Includes social and justice sectors, high-speed internet, government administration, natural resources, and the culture and tourism industries.

<sup>4</sup> Includes other partner funding which refers to third-party investments primarily in consolidated entities such as hospitals, colleges, school boards and children's aid societies.

<sup>5</sup> Includes federal and municipal contributions to provincial infrastructure investments.

 *Note*: Numbers may not add due to rounding.

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| **26** | **Financial Statement Discussion and Analysis, 2024–2025** |

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##### [**Table of Contents**](#toc)
**Liabilities** 

Ontario's liabilities consist of debt and other financial obligations, including accounts payable and the estimated cost of future payments, including pensions and other employee future benefits liability. See Table 6.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Liabilities**<br> **($ Billions)** | **Liabilities**<br> **($ Billions)** | **Liabilities**<br> **($ Billions)** | **Liabilities**<br> **($ Billions)** | **Liabilities**<br> **($ Billions)** | **Table 6** |
|  | **2024–25<br>Actual** | **% of Total** | **2023–24<br> Actual** | **% of Total** | **Variance <br>Increase <br>(Decrease)** |
|  Accounts payable and accrued liabilities | 44.9 | 7.9% | 48.9 | 8.9% | (4.0) |
|  Debt | 462.0 | 80.9% | 437.6 | 79.3% | 24.4 |
|  Other long-term financing | 19.2 | 3.4% | 18.0 | 3.3% | 1.2 |
|  Deferred revenue and capital contributions | 16.7 | 2.9% | 17.4 | 3.2% | (0.7) |
|  Pensions and other employee future benefits liability | 13.7 | 2.4% | 13.8 | 2.5% | (0.1) |
|  Derivative liabilities | 5.2 | 0.9% | 6.9 | 1.3% | (1.7) |
|  Other liabilities | 9.4 | 1.6% | 9.4 | 1.7% | – |
|  **Total Liabilities** | **571.2** | **100.0%** | **552.0** | **100.0%** | **19.1** |

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 *Note:* Numbers may not add due to rounding.

**Debt** 

Debt makes up the largest share of liabilities. From 2023–24 to 2024–25, debt increased by $24.4 billion to $462.0 billion at fiscal year-end, primarily to finance the deficit which has increased to support investments in critical public services such as health care, education and infrastructure.

Table 7 summarizes the government's financing in 2024–25.

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| | |
|:---|:---|
|  **Use of new financing by Ontario, 2024–25**<br> **($ Billions)** | **Table 7** |
|  Operating deficit and other transactions<sup>1</sup> | (0.8) |
|  Investment in capital assets owned by the government and its consolidated organizations, including hospitals, school boards, colleges and children's aid societies<sup>2</sup> | 23.1 |
|  Decrease in the government's cash and investments funded by cash holdings<sup>3</sup> | (1.2) |
|  | **21.1** |
|  Decrease in other long-term financing, Tangible Capital Assets financed by Public Private Partnership (P3)<sup>4</sup> | 3.3 |
|  **Net new financing** | **24.4** |

---

<sup> 1</sup> Increase in cash from a net increase of $1.9 billion in changes to assets and liabilities and an operating deficit of $1.1 billion. See the Consolidated Statement of Cash Flow. 

<sup> 2</sup> New Tangible Capital Asset investments of $23.2 billion less proceeds of $0.1 billion from the sale of tangible capital assets. 

<sup> 3</sup> Decrease in cash due to investment purchases in excess of retirement of $6.4 billion and spend of cash reserve of $7.6 billion. 

<sup>4</sup> Including net increase in financing of capital projects through Public Private Partnership (P3). See Note 4 to the Consolidated Financial Statements.

 *Note:* Numbers may not add due to rounding.

The government completed an annual borrowing program of $49.5 billion in 2024–25, compared to the $42.6 billion borrowed in 2023–24.

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| **Financial Statement Discussion and Analysis, 2024–2025** | **27** |

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##### [**Table of Contents**](#toc)
**Other long-term financing** 

This category includes obligations to finance construction of public assets including those procured through the P3 model and total debt of BPS. All assets that are owned by the Ontario government and its consolidated entities, and the associated financing liabilities, are reflected on Ontario's balance sheet during construction and as the liabilities are incurred. For information on asset investments, see the Tangible Capital Assets section.

**Other types of liabilities** 

Other types of liabilities include accounts payable, pensions and other employee future benefits, unspent transfers received from the federal government representing deferred revenues, derivative liabilities, and other liabilities.

Chart 9 shows the recent trends in liabilities for Ontario. This trend over the period between 2020–21 and 2024–25 shows public debt rising, mainly to fund capital investments and the annual deficits. Other types of liabilities, including accounts payable and deferred revenue, tend to be more variable since they often reflect specific circumstances at the fiscal year-end, such as accrued liabilities for goods and services.

![LOGO](g941512g22a21.jpg)

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| **28** | **Financial Statement Discussion and Analysis, 2024–2025** |

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##### [**Table of Contents**](#toc)
**Risks and risk management** 

Ontario's financial results and financial reporting are subject to various risks and uncertainties over which the Provincial government may have limited or no control.

A majority of Ontario's taxation revenue is administered and collected by the federal government through various tax collection agreements. Actual tax assessments from the Canada Revenue Agency for the current tax year and prior years are provided to the Ontario Ministry of Finance well after the tax year has ended. In the absence of actual tax data from the federal government, the Ministry of Finance uses economic driven models to produce the forecasts for federally administered taxes. Ontario manages risks to the revenue forecast by consulting with private-sector economists to inform the government's planning assumptions. For prudent fiscal planning, the Ontario Ministry of Finance's GDP growth projections are typically set slightly below the average private-sector forecast. Ontario's revenues rely heavily on the level and pace of economic activity in the province.

The ongoing monitoring of revenues allows the government to assess potential risks to its finances. Collaboration with the Canada Revenue Agency, which administers approximately 80 per cent of Ontario's taxation revenues, is essential to achieving this. As well, Ontario continues to explore ways to enhance its tax revenue forecasting and monitoring.

There are also risks arising from other sources of revenue, such as federal transfers and income from GBEs. Since these represent a smaller share of total revenue compared to larger revenue sources such as tax revenue — the risks they present are relatively less material to the fiscal plan. In addition, these risks are difficult to predict and quantify; for example, federal transfers are subject to federal policy changes while GBE net incomes are subject to regulatory decisions and market conditions. Note 1 to the Consolidated Financial Statements provides additional details on measurement of uncertainty.

Additionally, given the current pace of change and the interconnected nature of the external and emerging risk environment, the Province needs to consider potential threats and opportunities as it sets priorities. Areas like artificial intelligence, geopolitical and economic stability (e.g., tariffs and trade), cybersecurity, infrastructure, supply chain management and the changing workforce create a dynamic environment that may introduce or amplify existing risks to government and require targeted responses and mitigation to support the government's ability to achieve its priorities.

To address these challenges, critical investments and additional expenditures enabled the provision of services and the delivery of programs. This included the development of policies and changes to existing programs as well as a continued focus on modernizing government services to support economic development, enable digital transformation, and address key infrastructure needs.

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| **Financial Statement Discussion and Analysis, 2024–2025** | **29** |

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##### [**Table of Contents**](#toc)
Other risk management tools the government utilized include contingency funds to address risks that materialized. In the *2024 Budget*, the government committed a total of $1.5 billion ($1.4 billion for operating and $0.1 billion for capital) for the standard contingency fund. After the release of the *2024 Budget*, an additional top-up of $0.9 billion to the standard contingency fund was made to support the implementation of initiatives announced as part of the *2024 Ontario Economic Outlook and Fiscal Review*. Funds from the standard contingency fund were used to support initiatives such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Ontario Public Service compensation costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Beer Store, to support a stable transition to a more open and convenient alcohol beverage marketplace; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Social assistance, primarily to meet higher-than-expected demand for Ontario Works.

As required under the *Fiscal Sustainability, Transparency and Accountability Act, 2019*, a reserve is included in the projected surplus/deficit each year to guard against unforeseen revenue and expense changes that could have a negative impact on the government's fiscal performance. The *2024 Budget* included a $1.0 billion reserve for 2024–25. Excluding this reserve, the projected deficit for 2024–25 in the *2024 Budget* was $8.8 billion.

Provisions for losses that are likely to occur as a result of contingent liabilities, such as ongoing litigation and land claims, and that can be reasonably estimated, are expensed and reported as liabilities. Note 1 to the Consolidated Financial Statements provides further details.

Note 3 to the Consolidated Financial Statements explains the government's risk management strategies, which are intended to ensure that exposure to borrowing-related risk is managed in a prudent and cost-effective manner.

Changes in Canadian generally accepted accounting principles (GAAP) for the public sector issued by the Public Sector Accounting Board (PSAB) can have an impact on Ontario's budgets, estimates and actual results. The Office of the Comptroller General, Treasury Board Secretariat actively monitors proposed changes and provides input to standard setters to support the development of standards that support sound public policy decision-making, transparency and accountability in reporting.

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**Key Financial Ratios** 

In this section of the Annual Report, the use of key measures of financial position will be used to assess Ontario's financial position. The levels and trends of these measures indicate the impacts of economic and other events on the Ontario government's finances. The ratio and level of each over the past five fiscal years are outlined in Table 8.

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|:---|:---|:---|:---|:---|:---|:---|:---|
|  **Key Financial Ratios** | **Key Financial Ratios** |  |  |  |  | **Table 8** |  |
|  *For the fiscal year ended March 31* | *For the fiscal year ended March 31* |  |  |  |  |  |  |
|  |  | **2020–21** | **2021–22** | **2022–23** | **2023–24** | **2024–25** |  |
|  **Sustainability** | **Net Debt-to-GDP (%)**<br>| 42.6% | 39.5% | 37.7% | 36.6% | 36.2% |  |
|  **Sustainability** | **Net Debt-to-Operating Revenue (%)**<br>| 225.8% | 206.8% | 207.3% | 199.0% | 191.2% |  |
|  **Sustainability** | **Net Debt per Capita ($)** | $25234 | $25794 | $26405 | $26228 | $26485 |  |
|  **Flexibility** | **Net Interest-to-Operating Revenue (%)**<br>| 7.5% | 6.8% | 6.4% | 5.5% | 5.5% |  |
|  **Flexibility** | **Own-Source Operating Revenue to GDP (%)** | 15.0% | 15.9% | 15.2% | 15.3% | 15.8% |  |
|  **Vulnerability** | **Federal Transfers to Total Operating Revenue (%)**<br>| 20.6% | 16.5% | 16.2% | 16.7% | 16.4% |  |
|  **Vulnerability** | **Foreign Currency Debt to Total Debt (%)**<br>| 15.8% | 16.1% | 14.0% | 12.9% | 14.5% |  |
|  **Vulnerability** | **Unhedged Foreign Currency Debt (%)** | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% |  |
| &nbsp;&nbsp;&nbsp;&nbsp; *Notes:*<br>1) Beginning in 2020–21, Ontario is presenting public debt less of any investments in its own bonds and treasury bills.<br> 2) The forecasts of net debt and related ratios in the annual Budget are based on a calculation that includes the reserve.<br> 3) Sustainability Ratios for 2023–24 and 2024–25 have been presented to reflect an accounting policy change regarding the calculation of accrued Corporations Tax revenue, including the impact to Net Debt. See Note 17 to the Consolidated Financial Statements.<br> 4) To align ratio analysis related to the change in presentation of interest costs, Ontario's ratio measures have been renamed. "Revenue" has been renamed to "Operating Revenue" to reflect changes in presentation. Net interest represents interest and other debt servicing charges net of interest and investment income. Operating Revenue is calculated as Total revenue net of interest and investment income.<br> *Sources*: Nominal GDP is based on *Ontario Economic Accounts, First Quarter 2025*, released by the Ontario Ministry of Finance. Population estimates are from Statistics Canada. | &nbsp;&nbsp;&nbsp;&nbsp; *Notes:*<br>1) Beginning in 2020–21, Ontario is presenting public debt less of any investments in its own bonds and treasury bills.<br> 2) The forecasts of net debt and related ratios in the annual Budget are based on a calculation that includes the reserve.<br> 3) Sustainability Ratios for 2023–24 and 2024–25 have been presented to reflect an accounting policy change regarding the calculation of accrued Corporations Tax revenue, including the impact to Net Debt. See Note 17 to the Consolidated Financial Statements.<br> 4) To align ratio analysis related to the change in presentation of interest costs, Ontario's ratio measures have been renamed. "Revenue" has been renamed to "Operating Revenue" to reflect changes in presentation. Net interest represents interest and other debt servicing charges net of interest and investment income. Operating Revenue is calculated as Total revenue net of interest and investment income.<br> *Sources*: Nominal GDP is based on *Ontario Economic Accounts, First Quarter 2025*, released by the Ontario Ministry of Finance. Population estimates are from Statistics Canada. | &nbsp;&nbsp;&nbsp;&nbsp; *Notes:*<br>1) Beginning in 2020–21, Ontario is presenting public debt less of any investments in its own bonds and treasury bills.<br> 2) The forecasts of net debt and related ratios in the annual Budget are based on a calculation that includes the reserve.<br> 3) Sustainability Ratios for 2023–24 and 2024–25 have been presented to reflect an accounting policy change regarding the calculation of accrued Corporations Tax revenue, including the impact to Net Debt. See Note 17 to the Consolidated Financial Statements.<br> 4) To align ratio analysis related to the change in presentation of interest costs, Ontario's ratio measures have been renamed. "Revenue" has been renamed to "Operating Revenue" to reflect changes in presentation. Net interest represents interest and other debt servicing charges net of interest and investment income. Operating Revenue is calculated as Total revenue net of interest and investment income.<br> *Sources*: Nominal GDP is based on *Ontario Economic Accounts, First Quarter 2025*, released by the Ontario Ministry of Finance. Population estimates are from Statistics Canada. | &nbsp;&nbsp;&nbsp;&nbsp; *Notes:*<br>1) Beginning in 2020–21, Ontario is presenting public debt less of any investments in its own bonds and treasury bills.<br> 2) The forecasts of net debt and related ratios in the annual Budget are based on a calculation that includes the reserve.<br> 3) Sustainability Ratios for 2023–24 and 2024–25 have been presented to reflect an accounting policy change regarding the calculation of accrued Corporations Tax revenue, including the impact to Net Debt. See Note 17 to the Consolidated Financial Statements.<br> 4) To align ratio analysis related to the change in presentation of interest costs, Ontario's ratio measures have been renamed. "Revenue" has been renamed to "Operating Revenue" to reflect changes in presentation. Net interest represents interest and other debt servicing charges net of interest and investment income. Operating Revenue is calculated as Total revenue net of interest and investment income.<br> *Sources*: Nominal GDP is based on *Ontario Economic Accounts, First Quarter 2025*, released by the Ontario Ministry of Finance. Population estimates are from Statistics Canada. | &nbsp;&nbsp;&nbsp;&nbsp; *Notes:*<br>1) Beginning in 2020–21, Ontario is presenting public debt less of any investments in its own bonds and treasury bills.<br> 2) The forecasts of net debt and related ratios in the annual Budget are based on a calculation that includes the reserve.<br> 3) Sustainability Ratios for 2023–24 and 2024–25 have been presented to reflect an accounting policy change regarding the calculation of accrued Corporations Tax revenue, including the impact to Net Debt. See Note 17 to the Consolidated Financial Statements.<br> 4) To align ratio analysis related to the change in presentation of interest costs, Ontario's ratio measures have been renamed. "Revenue" has been renamed to "Operating Revenue" to reflect changes in presentation. Net interest represents interest and other debt servicing charges net of interest and investment income. Operating Revenue is calculated as Total revenue net of interest and investment income.<br> *Sources*: Nominal GDP is based on *Ontario Economic Accounts, First Quarter 2025*, released by the Ontario Ministry of Finance. Population estimates are from Statistics Canada. | &nbsp;&nbsp;&nbsp;&nbsp; *Notes:*<br>1) Beginning in 2020–21, Ontario is presenting public debt less of any investments in its own bonds and treasury bills.<br> 2) The forecasts of net debt and related ratios in the annual Budget are based on a calculation that includes the reserve.<br> 3) Sustainability Ratios for 2023–24 and 2024–25 have been presented to reflect an accounting policy change regarding the calculation of accrued Corporations Tax revenue, including the impact to Net Debt. See Note 17 to the Consolidated Financial Statements.<br> 4) To align ratio analysis related to the change in presentation of interest costs, Ontario's ratio measures have been renamed. "Revenue" has been renamed to "Operating Revenue" to reflect changes in presentation. Net interest represents interest and other debt servicing charges net of interest and investment income. Operating Revenue is calculated as Total revenue net of interest and investment income.<br> *Sources*: Nominal GDP is based on *Ontario Economic Accounts, First Quarter 2025*, released by the Ontario Ministry of Finance. Population estimates are from Statistics Canada. | &nbsp;&nbsp;&nbsp;&nbsp; *Notes:*<br>1) Beginning in 2020–21, Ontario is presenting public debt less of any investments in its own bonds and treasury bills.<br> 2) The forecasts of net debt and related ratios in the annual Budget are based on a calculation that includes the reserve.<br> 3) Sustainability Ratios for 2023–24 and 2024–25 have been presented to reflect an accounting policy change regarding the calculation of accrued Corporations Tax revenue, including the impact to Net Debt. See Note 17 to the Consolidated Financial Statements.<br> 4) To align ratio analysis related to the change in presentation of interest costs, Ontario's ratio measures have been renamed. "Revenue" has been renamed to "Operating Revenue" to reflect changes in presentation. Net interest represents interest and other debt servicing charges net of interest and investment income. Operating Revenue is calculated as Total revenue net of interest and investment income.<br> *Sources*: Nominal GDP is based on *Ontario Economic Accounts, First Quarter 2025*, released by the Ontario Ministry of Finance. Population estimates are from Statistics Canada. | <br>|

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**Measures of sustainability** 

Net debt provides a measure of the future government revenues that will be required to pay for the government's past transactions. Net debt as a percentage of Ontario's GDP shows the financial demands on the economy resulting from the government's spending and taxation policies. A lower ratio of net debt-to-GDP generally indicates higher sustainability.

The government's net debt-to-GDP ratio was 36.2 per cent at the end of fiscal year 2024–25, lower than the 39.2 per cent forecast in the *2024 Budget*. As shown in Table 8, this ratio has decreased by 0.4 percentage points over the prior year, largely due to net debt increasing at a slower rate than GDP. The ratio of Net Debt-to-Operating Revenue is another key measure of sustainability, since net debt reflects the future revenue that is required to pay for past transactions and events. A lower net debt-to-operating revenue ratio generally indicates higher sustainability. This ratio was 191.2 per cent at the end of fiscal year 2024–25, lower than the 213.5 per cent forecast in the *2024 Budget.* The ratio decreased by 7.8 percentage points from the prior year primarily due to higher operating revenues.

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**Measures of flexibility** 

The ratio of Net Interest-to-Operating Revenue shows the share of provincial revenue that is being used to pay interest and other debt servicing charges and therefore is not available for programs. Operating Revenue is calculated as total revenue net of interest and investment income. A lower ratio generally indicates that a government has more flexibility to direct its revenues to programs. The ratio has fallen for Ontario over the past five years, from a high of 7.5 per cent in 2020–21 to the current level of 5.5 per cent.

Own-source Operating Revenue as a share of Ontario's GDP shows the extent to which the government is leveraging funds from the provincial economy collected through taxation, user fees and other revenue sources it controls. A high taxation burden may make a jurisdiction less competitive, therefore increases in this ratio may reduce future revenue flexibility.

**Measures of vulnerability** 

Transfers from the federal government as a percentage of total operating revenue is an indicator of the degree to which Ontario relies on the federal government for revenue. A higher ratio may imply that a provincial government is more reliant on federal transfers. Provinces may have limited control over the value of these transfers, and changes in federal policies can result in shifts in federal revenues to provinces.

Ontario's share of revenue from federal transfers, including direct transfers to the broader public sector (BPS) is 16.4 per cent in 2024–25. This is consistent with shares observed in recent years but lower than 2020–21 due to significant time-limited COVID-19 funding.

Foreign currency debt to total debt is a measure of vulnerability to changes in foreign currency exchange rates. Accessing borrowing opportunities in foreign currencies allows Ontario to diversify its investor and funding base. It also ensures that the government will continue to have adequate access to capital in the event that domestic market conditions become more challenging. Ontario manages foreign currency risk by hedging its exposure to foreign currencies through the use of financial instruments. Effective hedging has allowed the government to consistently limit its exposure to foreign currency fluctuations to 0.1 per cent of debt issued for provincial purposes in 2020–21, remaining unchanged from 2021–22 to 2024–25.

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**Fiscal Management** 

**Use of taxpayer dollars** 

To support long-term economic growth and sustainable public finances, the government remains committed to ensuring taxpayer dollars are managed appropriately. This includes an emphasis on evidence-based decision-making and performance measurement to identify opportunities for modernization and to improve the effectiveness and efficiency of public programs and services.

To further support this approach, the government is advancing an outcomes management strategy to promote greater alignment between performance measurement and strategic objectives across the public sector. This work aims to strengthen accountability, inform decision-making, and support the delivery of effective and efficient programs and services while maintaining fiscal sustainability.

The Audit and Accountability Committee (AAC) plays an important role in supporting the government's efforts to ensure the effectiveness and efficiency of operations, and sound stewardship of public funds through effective risk management, governance and internal control practices. The AAC supports enhanced governance by providing input and direction to ensure internal audit services continue to align with emerging risks and government priorities, based on independent strategic advice provided by the Ontario Internal Audit Committee (OIAC), an advisory audit committee of the AAC.

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**Non-Financial Activities** 

This section discusses key non-financial results of major sectors. The purpose is to provide highlights of Ontario government spending and the related activities in these sectors.

**Health sector** 

Ontario's health care system is connecting Ontarians to the care they need, when and where they need it during all stages of life. Ontario is building a patient-centred, equitable, results-driven, and sustainable public health care system in Ontario.

Results reported in 2024–25 include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Launching the Primary Care Action Team, led by Dr. Jane Philpott, to implement a plan which will support the
government's goal of connecting everyone in the province to a family doctor or primary care team by 2029.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Expanding the Ontario Breast Screening Program by lowering the age of self-referral for publicly funded mammograms to the
age of 40, connecting more women to screening services to detect and treat breast cancer sooner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Adding new adult hospice beds across the province to expand access to community end-of-life care, with new pediatric hospice beds already added for Keaton's House – Paul Paletta Children's Hospice in Hamilton.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Introducing the human papillomavirus (HPV) test in the Ontario Cervical Screening Program as the primary test in screening
for cervical cancer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Publicly funding and administering a new treatment for advanced-stage prostate cancer — the first jurisdiction in
Canada to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Completing the Mount Sinai Hospital redevelopment project to build a new and expanded emergency department, operating
rooms, and intensive care unit, providing a more modern space to improve care for patients undergoing surgery, requiring emergency care, and for those with cancer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Increasing the availability of ambulances across the province and investing in the Dedicated Offload Nurses Program to
support hospitals to hire more nurses and other health professionals dedicated to offloading ambulance patients in hospital emergency departments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Expanding the Respiratory Syncytial Virus (RSV) program to connect more infants, high-risk children and pregnant women to
RSV vaccines that can help strengthen protection during the fall respiratory illness season.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Increasing the annual income eligibility thresholds for the Ontario Seniors Dental Care Program and the Seniors Co-Payment Program for single Ontarians aged 65 and over to support seniors in accessing the dental and health care they need.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Expanding the list of drugs that midwives can prescribe and administer for the first time since 2010.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Finishing construction and opening new beds and upgrading beds in the long-term care sector between April 1, 2024, to
March 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Supporting the recruitment of over 3,300 personal support workers into the long-term care and home and community care
sectors since November 2023 through new recruitment incentives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Continuing the Community Paramedicine for Long-Term Care program which supports Ontario's certified land paramedic
services to assist eligible seniors to stay in their own homes safely and for longer by providing access to non-emergency medical supports.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Continuing investments in long-term care staffing to better meet long-term care system level average targets for four hours
of care for Long-Term Care Homes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Launching the Integrated Technology Solutions program in 2024–25, which provides supplementary funding to help long
term care homes acquire medication management technologies to prescribe and dispense medication and improve their access to tools and resources needed to make proper and accurate clinical decisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Conducting 10,146 inspections to enforce compliance with legislative and regulatory requirements and launching a compliance
assistance initiative helping long-term care homes achieve compliance.

**Education sector** 

Ontario's publicly funded early years and education system is focused on preparing Ontario's children and students for success, and ensuring that young people develop in-demand skills that can be applied to the labour market for good, high-paying jobs. The government is committed to ensuring Ontario continues to have a leading education system, both in English and French, that focuses on important foundational skills like reading, writing and math.

Results reported in 2024–25 include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Continuing to modernize curriculum to ensure students have foundational skills in reading, writing and science, technology,
engineering and math (STEM), to better prepare them for the jobs of tomorrow. This includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Revising the Grade 10 Career Studies Course to include new mandatory learning on mental health literacy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Implementing a new de-streamed Grade 9 Exploring Canadian Geography course and new
Grades 9 and 10 Business Studies and Technological Education courses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Launching a new Grade 9 English course for French-language schools.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Requiring all high school students to earn a Grade 9 or 10 Technological Education credit as part of their Ontario
Secondary School Diploma.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Continuing investments to provide focused supports in the classroom and at home to help students build the math and
literacy skills and knowledge they need to succeed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Announcing a new financial literacy graduation requirement to equip students with practical financial literacy skills, such
as creating and managing a household budget, saving for a home, learning to invest wisely and protecting themselves from financial fraud.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Continuing to implement policies and programs that support students in their education and career. This includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Administering job skills programs such as Dual Credit and Specialist High Skills Major.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Introducing the new Focused Apprenticeship Skills Training (FAST) pathway beginning in September 2025 allowing students in
Grades 11 and 12 to participate in apprenticeship learning through additional co-operative education credits while completing high school.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Implementing career coaching for Grade 9 and 10 students to explore new opportunities in STEM and the skilled trades.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Introducing an updated provincial code of conduct to help reduce distractions in classrooms, improve student health and
safety, and focus on learning, equipping students for life after graduation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Successfully negotiating labour agreements with education workers, averting strikes or the withdrawal of services.
Agreements were also reached with principals and vice-principals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Improving access to child care, with 516,455 licenced child care spaces for children aged 0 to 12, an increase of 11,400
spaces since March 31, 2023.

**Postsecondary education sector** 

Ontario's postsecondary system prepares students and job seekers with the high-quality education, skills and opportunities needed to get good jobs and provides Ontario's businesses with the skilled workforce and talent they need to thrive and prosper.

Results reported in 2024–25 include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Maintaining postsecondary education attainment rate in 2024–25 at approximately 75 per cent —
consistent with 2023–24.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Providing financial assistance through the Ontario Student Assistance Program to approximately 494,000 full-time students
in the 2024–25 fiscal year.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Supporting 7,200 students through the Ontario Learn and Stay Grant with over $57 million in grant funding issued in
the 2024–25 academic year to date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Supporting 284 research projects for ground-breaking work at leading research institutes and organizations across the
province, including at colleges, universities, and research hospitals, through the Ontario Research Fund and Early Researcher Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Supporting the training of more doctors with an expansion of 340 undergraduate seats and 551 postgraduate positions in
medical schools over the next five years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Supporting the delivery of nursing education through the ongoing expansion of 3,000 additional enrolment spaces in
Practical Nursing and Bachelor of Science in Nursing programs beginning in fall 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Supporting commercialization through Intellectual Property Ontario, which onboarded over 500 new small-medium enterprise
clients in 2024–25, totalling more than 800 clients by the end of March 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Supporting about 6,500 high-quality research internships through Mitacs, an organization that builds research
partnerships between postsecondary institutions and industry, with $32.4 million over three years.

**Children's and social services sector** 

The Ministry of Children, Community and Social Services funds, designs and delivers programs and services, working with community partners, to protect and support people in Ontario during times of need. The Ministry works to improve outcomes for children, youth, families and individuals who need support, and advance social and economic opportunities for women across Ontario.

Results reported in 2024–25 include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Helping people with disabilities keep up with the rising cost of living by increasing Ontario's social assistance
disability payments, including the Ontario Disability Support Program and the Assistance for Children with Severe Disabilities program, by almost 17 per cent since September 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Continuing to support children with autism and their families by enrolling thousands of children and youth into the Ontario
Autism Program; this includes approximately 22,000 children in the Core Clinical Services program as of March 2025, an increase of approximately 14,000 since 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Opening the Grandview Kids Jerry Coughlan Building in Ajax, a fully accessible, state-of-the-art children's treatment centre that will serve more than 6,000 children and youth with physical, communication and developmental needs in the Durham
region annually.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Continuing to help youth in the child welfare system prepare for and succeed after leaving care, by providing supports to
pursue postsecondary education, training, and employment opportunities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Investing in 85 new community-based projects across the province to prevent gender-based violence through education and
awareness, building safer, healthier communities and enhancing well-being and economic opportunities for people and families.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Helping women gain the skills, training and knowledge needed to join the workforce and gain financial independence by
investing in 25 local initiatives across the province through the Women's Economic Security Program, which provides career training opportunities and additional supports to address barriers to employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Supporting the construction of the new Anduhyaun Indigenous women's shelter in Toronto, which will provide a safe
space for Indigenous women and children fleeing violence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Helping veterans in need cover the rising cost of essentials like housing, health supports, assistive devices, and personal
items by increasing the maximum support through the Soldier's Aid Commission to $3,000 per year, up from $2,000.

**Justice sector** 

The justice sector supports the administration and delivery of justice services, including the administration of courts, prosecution of offences, provision of legal services and supports to victims and vulnerable persons, as well as administering the public safety, policing and correctional systems to ensure that Ontario's diverse communities are supported and protected.

Results reported in 2024–25 include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Continuing the largest transformation of the justice sector in Ontario's history, designed to bring more services
online across Ontario, including rural, Northern and First Nation communities. This includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Extending availability of video and audio court hearings across the province, enabling 147 courtrooms across Ontario to
support hybrid hearings, an increase of 23 courtrooms compared to 2023–24;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Expanding electronic filing service to include more than 900 types of civil, family, bankruptcy, Divisional Court and Small
Claims Court documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Increasing capacity of a single online platform to ensure the public can access basic court information in select civil and
active criminal matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Helping the courts keep pace with a growing number of complex cases by increasing the capacity to hear cases. This includes
appointing 16 new judges to prosecute more cases and hiring 190 new court services staff members to support the administration of the courts and the judiciary while supporting victims and witnesses through the court process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Investing in air operations focused on addressing violent carjackings, auto theft, street racing and impaired driving, with
dedicated resources to support Ottawa, Toronto, Durham, Halton, and Peel Regional Police Services, to improve response time and increase public safety on highways and roadways.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Launching the Provincial Bail Compliance Dashboard, to consolidate and share critical information, particularly for
individuals charged with firearms-related offences to help police monitor high-risk offenders on bail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Continuing work to support the Nishnawbe Aski Police Service Board as it joins Ontario's policing framework under the *Community Safety and Policing Act*, including doubling the number of officers serving 34 First Nation communities and ensure culturally appropriate policing with legislated service standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Protecting firefighters through the Fire Protection Grant, which is helping 374 municipal fire departments purchase
equipment and upgrade infrastructure to reduce exposure to cancer-causing chemicals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Modernizing police governance with the implementation of the *Community Safety and Policing Act* and establishment of
Canada's first Inspectorate General of Policing to provide independent oversight, drive performance improvements, and enhance public trust in policing through inspections, data analysis, and collaboration with police services and boards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Expanding mental health supports for public safety personnel, including police, firefighters, correctional workers and
paramedics, alongside initiatives such as the Ontario Immediate Family Wellness Program that offers bereavement counselling to families of first responders who die in the line of duty or by suicide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Building more capacity in provincial jails and modernizing adult correctional services across Ontario. The London
Intermittent Centre at Elgin-Middlesex Detention Centre has been repurposed and reopened as of March 2025. Work is also underway on major correctional infrastructure projects such as the Brockville Correctional Complex and Quinte Detention Centre
expansion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Supporting Ontario's regulated iGaming market, which generated almost $3.2 billion in total gaming revenue,
which is a 32 per cent increase from the previous year.

**Condition and capacity of provincial tangible capital assets** 

Infrastructure investments should be made using an evidence-based approach. This includes a focus on asset management to ensure the delivery of high-quality public services, while efficiently managing the costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Province compiled its first infrastructure asset inventory in 2016 as a key step in managing provincial assets more
effectively. The infrastructure asset inventory is now updated annually and currently contains information such as the location, age, condition and value of over 15,000 tangible capital assets, including buildings and Ontario's entire road and
bridge network. This covers the majority of the infrastructure assets owned or consolidated (i.e., certain BPS organizations) by the Ontario government, as well as some other assets that are funded in part, but not owned or consolidated, by the
government.

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| **Financial Statement Discussion and Analysis, 2024–2025** | **39** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Province uses the infrastructure asset inventory to track, monitor and report on the physical condition of assets. For
example, the infrastructure asset inventory contains indicators such as Facility Condition Indexes (FCIs), Bridge Condition Indexes (BCIs) and Pavement Condition Indexes (PCIs), which help to inform the state of infrastructure assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Ontario has expanded its infrastructure asset data to include other relevant data and analysis, such as the current
and projected capacity and utilization of assets. This integrated data provides a base to support evidence-based infrastructure planning decisions which help ensure that infrastructure investments provide value for money and are made at the right
time and the right place.

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| **40** | **Financial Statement Discussion and Analysis, 2024–2025** |

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**Transparency and Accountability** 

Ontario continues to take steps that enhance government transparency and fiscal accountability in its financial reporting. Throughout the fiscal year, the government provides regular updates on Ontario's finances. The Annual Report and Consolidated Financial Statements, along with supplementary information, are central to demonstrating the government's transparency and accountability in reporting its financial activities and its position at the end of the fiscal year.

**Recent developments in public sector accounting standards** 

The Ontario government's financial reports are prepared in accordance with the accounting standards for governments set by the Public Sector Accounting Board (PSAB) and contained in the Chartered Professional Accountants of Canada (CPA Canada) Public Sector Accounting Handbook.

As described in Note 1 to the Consolidated Financial Statements, future changes in both public-sector and private-sector accounting standards may affect how assets, liabilities, revenues and expenses are reported in Ontario's consolidated financial reports. Other current projects that are being closely monitored by Ontario include accounting for intangible assets, employee benefits, government not-for-profit strategy, and annual improvement projects.

**The C.D. Howe Institute Fiscal Accountability Report** 

Annually, the C.D. Howe Institute issues its commentary on the fiscal reporting transparency of senior Canadian governments, with a focus on the relevance, accessibility, timeliness and reliability of these government financial reports, including the Public Accounts. Each government is assigned a letter grade based on the quality of the numbers presented in these reports, access and user friendliness, and the ability to use them for various decision-making purposes.

In the 2024 report, Ontario had maintained its grade.

At the time of the Auditor General opinion date for the 2024–25 Public Accounts, the 2025 Fiscal Accountability Report covering the *Public Accounts of Ontario 2023–2024* had not been issued.

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| **Financial Statement Discussion and Analysis, 2024–2025** | **41** |

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| **42** | **Financial Statement Discussion and Analysis, 2024–2025** |

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## CONSOLIDATED

## FINANCIAL STATEMENTS

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| **Consolidated Financial Statements, 2024–2025** | **43** |

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| **44** | **Consolidated Financial Statements, 2024–2025** |

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![LOGO](g941512g22a23.jpg)

![LOGO](g941512g22a22.jpg)

**INDEPENDENT AUDITOR'S REPORT**<br>**To the Members of the Legislative Assembly of the Province of Ontario**<br>**Opinion**<br>I have audited the accompanying Consolidated Financial Statements of the Province of Ontario, which comprise the Consolidated Statement of Financial Position as at March 31, 2025, and the Consolidated Statements of Operations, Change in Net Debt, Change in Accumulated Operating Deficit, Remeasurement Gains and Losses and Cash Flow for the year then ended, and notes to the Consolidated Financial Statements, including a summary of significant accounting policies.<br>In my opinion, the accompanying Consolidated Financial Statements present fairly, in all material respects, the consolidated financial position of the Province of Ontario as at March 31, 2025, and the consolidated results of its operations, the consolidated changes in its net debt, the consolidated change in its accumulated operating deficit, the consolidated remeasurement gains and losses and its consolidated cash flows for the year then ended in accordance with Canadian public sector accounting standards.<br>**Basis for Opinion**<br>I conducted my audit in accordance with Canadian generally accepted auditing standards. My responsibilities under those standards are further described in the Auditor's Responsibility for the Audit of the Consolidated Financial Statements section of this report. I am independent of the Province of Ontario in accordance with the ethical requirements that are relevant to my audit of the Consolidated Financial Statements in Canada, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.<br>**Key Audit Matters**<br>Key audit matters are those matters that, in my professional judgment, were of most significance in my audit of the Consolidated Financial Statements of the Province of Ontario for the year ended March 31, 2025.<br>These matters were addressed in the context of my audit of the Consolidated Financial Statements as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters.<br>

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| **Consolidated Financial Statements, 2024–2025** | **45** |

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![LOGO](g941512g22a23.jpg)

The Key Audit Matters are as follows:

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| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> **Key Audit Matters** | <br> **Audit Work Performed** |
| &nbsp;&nbsp;&nbsp;**Personal Income Tax** | |
| &nbsp;&nbsp;&nbsp; Personal Income Tax has been identified as a key audit matter because of the magnitude of this revenue and because the estimate is complex and includes several inputs and assumptions.<br>Personal Income Tax is the Province of Ontario's largest revenue stream, providing approximately $55.7 billion (2024 – $50.8 billion) in revenue in 2024/25. Note 1d (Measurement Uncertainty) provides disclosure on measurement uncertainty related to personal income tax revenues.<br>Personal Income Tax revenue in a fiscal year is derived from the Ministry of Finance's estimates of personal income taxes from two calendar years. For the fiscal year ended March 31, 2025, the Province of Ontario records nine months of revenue from the calendar year 2024 and the first three months of revenue from calendar year 2025.<br>Tax assessments for the 2024 calendar year will not be finalized until December 2025, and 2025 tax assessments will not be finalized until December 2026. This means precise revenue figures cannot be determined until 21 months after the fiscal year-end date. As a result, the Ministry of Finance estimates these revenues based on the best information available. | &nbsp;&nbsp;&nbsp;&nbsp; Audit work to address this key audit matter included:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● assessing the appropriateness of the method used to make the estimates;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● performing a retrospective review to assess the accuracy of prior year estimates;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● testing the completeness and accuracy of underlying data and management's calculations;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● evaluating the sufficiency of the measurement uncertainty disclosures in the Consolidated Financial Statements; and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● engaging an econometric specialist to assist with the evaluation of the Ministry of Finance's personal income tax estimation model.<br>|
| &nbsp;&nbsp;&nbsp;**Corporations Tax** | &nbsp;&nbsp;&nbsp;**Corporations Tax** |
| &nbsp;&nbsp;&nbsp; Corporations Tax has been identified as a key audit matter because of the magnitude of this revenue and because the estimate is complex and includes several inputs and assumptions.<br>Corporations Tax is a large revenue stream, providing approximately $27.8 billion (2024 – $23.1 billion) in revenue in 2024/25. Note 1d (Measurement Uncertainty) provides disclosure on measurement uncertainty related to Corporations Tax revenue. | &nbsp;&nbsp;&nbsp;&nbsp; Audit work to address this key audit matter included:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● assessing the appropriateness of the method used to determine the Corporations Tax estimate;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● performing a retroactive review to assess the accuracy of prior year estimates;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● testing the completeness and accuracy of underlying data and management's calculations;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● developing a range estimate to compare to the Ministry of Finance's estimate;<br>|

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| **46** | **Consolidated Financial Statements, 2024–2025** |

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![LOGO](g941512g22a23.jpg)

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| &nbsp;&nbsp;&nbsp; Corporations Tax revenue is based on tax returns assessed by the Canada Revenue Agency (CRA) up to June 30, 2025 and includes estimates of corporate income tax from two calendar years. For the fiscal year ended March 31, 2025, the Province of Ontario records nine months of revenue from the calendar year 2024 and the first three months of revenue from calendar year 2025.<br>Corporations' tax assessments for the 2024 calendar year will not be finalized until December 2025, and the 2025 tax assessments will not be finalized until December 2026. This means precise revenue figures cannot be determined until 21 months after the fiscal year-end date. As a result, the Ontario Ministry of Finance estimates these revenues based on the best available information. | &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● evaluating the sufficiency of the measurement uncertainty disclosures in the Consolidated Financial Statements; and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● engaging an econometric specialist to assist with the evaluation of the Ministry of Finance's corporations tax model.<br>|
| &nbsp;&nbsp;&nbsp;**Pension and Other Employee Future Benefits** | &nbsp;&nbsp;&nbsp;**Pension and Other Employee Future Benefits** |
| &nbsp;&nbsp;&nbsp; The Province of Ontario sponsors several pension plans, both as sole and joint sponsor. In addition, the Province reports in its Consolidated Financial Statements pension benefits for employees in the hospital and colleges sectors. The estimated plan assets and accrued benefit obligations of these plans exceed $13.7 billion (2024 – $13.8 billion). Information related to Pension and Other Employee Future Benefits is disclosed in notes 1d (Measurement Uncertainty) and 6 (Pensions and Other Employee Future Benefits).<br>The Province of Ontario relies on third-party actuarial specialists to estimate the accrued benefit obligation and other information for financial statement note disclosures. These calculations rely on management's best estimate for significant economic and demographic assumptions.<br>Plan assets are valued at market-related value for funded plans. Market-related value is based on the fair value of plan assets reported in the pension plans' financial statements over the last five years. Where observable market data is not available for investments, fair value estimates requiring significant management judgment are used. | &nbsp;&nbsp;&nbsp;&nbsp; Audit work to address this key audit matter included:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● assessing pension plan auditors' work over the reliability of the market-related value of plan assets used in the estimates, as well as their work over the plan member data provided by management to an actuarial expert for preparing the estimate of pension obligations;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● assessing the qualifications of management's actuarial experts;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● obtaining an understanding of the assumptions and methods used by these experts in determining the accrued benefit obligation for pension benefits and the appropriateness of the assumptions and methods used and testing the underlying employee data used in the valuation of the accrued benefit obligation; and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● working with an independent actuarial expert to assess management's significant economic and demographic assumptions.<br>|

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| **Consolidated Financial Statements, 2024–2025** | **47** |

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![LOGO](g941512g22a23.jpg)

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| &nbsp;&nbsp;&nbsp;**Robinson Superior Treaty Annuities Claim** | &nbsp;&nbsp;&nbsp;**Robinson Superior Treaty Annuities Claim** |
| &nbsp;&nbsp;&nbsp; On July 26, 2024, the Supreme Court of Canada ruled in Ontario (Attorney General) v. Restoule that the Crown is obligated to compensate the Superior Plaintiffs under the Robinson-Superior Treaty. The Court directed the Crown to engage in a six-month negotiation with the Superior Plaintiffs regarding past compensation and, if a settlement was not reached, to exercise its discretion to determine the amount of past compensation. A settlement with the Superior Plaintiffs was not reached during this period. As a result, in accordance with the Court's ruling, the Crown exercised its discretion and determined that a compensation in the amount of $3.6 billion, for the past breach of the Augmentation Clause in the Treaty. Of the $3.6 billion, the Province of Ontario agreed to pay half, with the Government of Canada paying the remaining half. The Superior Plaintiffs requested the Court review the Crown's determination for constitutional compliance, which may result in the Crown owing additional compensation, or a different breakdown in compensation costs between the province and the Federal government.<br>The Robinson Superior Treaty Annuities Claim has been identified as a key audit matter because of the complex nature of the claim and the significant accounting judgement and assumptions in the analysis undertaken by the Province to assess and estimate the probability of the liability and any potential additional contingent liability. The claim is currently with the Ontario Superior Court of Justice for a review of constitutional compliance to determine if the combined amount of $3.6 billion made by the Province and Canada is an appropriate remedy. | &nbsp;&nbsp;&nbsp;&nbsp; Audit work to address this key audit matter included:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● reviewing documentation to support the status of the claim, payments and accruals;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● obtaining and reviewing legal counsel's assessment on the status of the claim through sending a legal confirmation;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● reviewing management's position paper; and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● reviewing disclosures in the Consolidated Financial Statements related to this claim and related payments and accruals.<br>|
| &nbsp;&nbsp;&nbsp;**Tobacco Settlement Claim** | &nbsp;&nbsp;&nbsp;**Tobacco Settlement Claim** |
| &nbsp;&nbsp;&nbsp;On March 6, 2025, the Ontario Superior Court of Justice approved the *Companies' Creditors Arrangement Act* Plans of Arrangement in relation to historic lawsuits filed against major Canadian tobacco companies. As part of the court-approved resolution, the Province of Ontario is entitled to receive compensation of | &nbsp;&nbsp;&nbsp;&nbsp; Audit work to address this key audit matter included:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● obtaining management's accounting position paper;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● evaluating management's position, assumptions and inputs with publicly available information;<br>|

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| **48** | **Consolidated Financial Statements, 2024–2025** |

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| &nbsp;&nbsp;&nbsp; $7.1 billion to recover a portion of incurred smoking-related health care costs. The Province will receive the compensation in the form of an upfront payment, which is dependent on the tobacco companies' working capital as of the implementation date of the Plans, and annual contributions payable based on the tobacco companies' net income after taxes which will continue until the aggregate settlement amount is paid in full.<br>The Tobacco Settlement Claim has been identified as a key audit matter because of the magnitude of the settlement, and because the estimate of the discounted receivable is complex and includes significant assumptions due to the prolonged timeframe over which the settlement will be paid. The Province has recognized a present value of the settlement in the amount of $3.4 billion in revenues and receivables.<br>Note 1d (Measurement Uncertainty) provides disclosure on measurement uncertainty related to the Tobacco Settlement, the details of which are disclosed in Note 10. | &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● engaging with management's legal counsel on the status of the claim;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● reviewing documentation to support the status of the claim and the assumptions and inputs used in the estimation of the receivable and revenues;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● developing a range estimate to compare to the Ministry of Finance's point estimate; and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● evaluating the sufficiency of the measurement uncertainty disclosure and other disclosures in the Consolidated Financial Statements.<br>|

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**Other Accompanying Information** 

The Government of Ontario (Government) is responsible for the information in the 2024-25 Public Accounts of Ontario Annual Report.

My opinion on the Consolidated Financial Statements does not cover the other information accompanying the Consolidated Financial Statements and I do not express any form of assurance conclusion thereon.

In connection with my audit of the Consolidated Financial Statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Consolidated Financial Statements or my knowledge obtained during the audit, or otherwise appears to be materially misstated.

If, based on the work I have performed on this other information, I conclude that there is a material misstatement of this other information, I am required to report that fact in this auditor's report. I have nothing to report in this regard.

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| **Consolidated Financial Statements, 2024–2025** | **49** |

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![LOGO](g941512g22a23.jpg)

**Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements** 

Management is responsible for the preparation and fair presentation of these Consolidated Financial Statements in accordance with Canadian public sector accounting standards, and for such internal controls as management determines is necessary to enable the preparation of Consolidated Financial Statements that are free from material misstatement, whether due to fraud or error.

In preparing the Consolidated Financial Statements, management is responsible for assessing the Province of Ontario's ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the Government either intends to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Province of Ontario's financial reporting process.

**Auditor's Responsibility for the Audit of the Consolidated Financial Statements** 

My objectives are to obtain reasonable assurance about whether the Consolidated Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Consolidated Financial Statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, I exercise professional judgment and maintain professional skepticism throughout the audit. I also:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Identify and assess the risks of material misstatement of the Consolidated Financial Statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Province of Ontario's internal control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Province of Ontario's ability to continue as a going concern. If I conclude that a material uncertainty exists, I
am required to draw attention in my auditor's report to the related disclosures in the Consolidated Financial Statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up
to the date of my auditor's report. However, future events or conditions could cause the Province of Ontario to cease to continue as a going concern.

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| **50** | **Consolidated Financial Statements, 2024–2025** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Evaluate the overall presentation, structure and content of the Consolidated Financial Statements, including the
disclosures, and whether the Consolidated Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.

The audit of the Consolidated Financial Statements is a group audit engagement. As such, I also obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the Consolidated Financial Statements. I am responsible for the direction, supervision and performance of the group audit and I remain solely responsible for my audit opinion.

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control identified during the audit.

I also provide those charged with governance with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, I determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. I describe these matters in my auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

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|:---|:---|
|  | Original signed by |
| Toronto, Ontario | Shelley Spence, FCPA, FCA, LPA |
| August 29, 2025 | Auditor General |

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| **Consolidated Financial Statements, 2024–2025** | **51** |

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| **52** | **Consolidated Financial Statements, 2024–2025** |

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|:---|:---|:---|:---|
| **Province of Ontario**<br> **Consolidated Statement of Operations** | **Province of Ontario**<br> **Consolidated Statement of Operations** | **Province of Ontario**<br> **Consolidated Statement of Operations** |  |
| **For the year ended March 31**<br> **($ Millions)** | 2024–25<br> Budget**<sup>1</sup>** | **2024–25**<br> **Actual** | <br> 2023–24<br> Restated<br> Actual<br> (*Note 17*) |
|  **Revenue** *(Schedules 1 and 2)*  | **Revenue** *(Schedules 1 and 2)*  | **Revenue** *(Schedules 1 and 2)*  | **Revenue** *(Schedules 1 and 2)*  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Personal Income Tax | 51936 | **55701** | 50773 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales Tax | 38832 | **39363** | 39864 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporations Tax | 24915 | **27757** | 23094 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employer Health Tax | 8720 | **9061** | 8581 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Education Property Tax | 5831 | **5887** | 5810 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ontario Health Premium | 5014 | **5221** | 5008 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gasoline and Fuel Taxes | 2576 | **2233** | 2137 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Taxes | 6863 | **6294** | 6547 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Taxation** | 144687 | **151517** | 141814 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfers from Government of Canada | 36252 | **36633** | 34336 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fees, Donations and Other Revenues from Broader Public Sector Organizations *(Schedule 10)* | 10241 | **14710** | 13071 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from Investment in Government Business Enterprises *(Schedule 9)* | 6786 | **7465** | 7427 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest and Investment Income | 2551 | **2786** | 3085 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 7724 | **13050** | 9242 |
|  **Total Revenue** | 208241 | **226161** | 208975 |
|  **Expense** *(Schedules 3 and 4)*  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Health | 84961 | **91631** | 85458 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Education<sup>2</sup> | 39306 | **40059** | 38810 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Children's and Social Services | 19926 | **20736** | 19412 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest and Other Debt Servicing Charges | 16464 | **15122** | 14461 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Postsecondary Education | 12189 | **14146** | 13235 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Justice | 5878 | **7224** | 6037 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Programs | 38323 | **38333** | 32255 |
|  **Total Expenses** | 217047 | **227251** | 209668 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reserve | 1000 | **–** |  |
|  **Annual Deficit** | (9806) | **(1090)** | (693) |

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<sup> 1</sup> Amounts reported as "Plan" in *2024 Budget* have been reclassified. See Note 17. 

<sup>2</sup> Teachers' Pension Plan expense is included in Education (Schedule 4).

 **See accompanying Notes and Schedules to the Consolidated Financial Statements.** 

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| **Consolidated Financial Statements, 2024–2025** | **53** |

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| **Province of Ontario**<br> **Consolidated Statement of Financial Position** | **Province of Ontario**<br> **Consolidated Statement of Financial Position** | **Province of Ontario**<br> **Consolidated Statement of Financial Position** |
| **As at March 31**<br> **($ Millions)** | **2025** | 2024<br> Restated<br> (*Note 17*) |
|  **Liabilities** | **Liabilities** | **Liabilities** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts Payable and Accrued Liabilities *(Schedule 5)*  | **44927** | 48942 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt *(Note 2)* | **462044** | 437633 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Long-Term Financing *(Note 4)* | **19196** | 18025 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred Revenue and Capital Contributions *(Note 5)* | **16741** | 17443 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pension and Other Employee Future Benefits *(Note 6)* | **13736** | 13783 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative Liabilities *(Note 3)* | **5224** | 6881 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Liabilities *(Note 7)* | **9369** | 9384 |
|  **Total Liabilities** | **571237** | 552091 |
|  **Financial Assets** | **Financial Assets** | **Financial Assets** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and Cash Equivalents | **33868** | 41459 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Portfolio Investments *(Note 8)* | **32301** | 25919 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts Receivable *(Note 10 and Schedule 6)* | **22893** | 24340 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans Receivable *(Schedule 7)* | **12065** | 11852 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative Assets *(Note 3)* | **6090** | 4531 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Assets | **971** | 1062 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment in Government Business Enterprises *(Schedule 9)* | **35999** | 33167 |
|  **Total Financial Assets** | **144187** | 142330 |
|  **Net Debt** | **(427050)** | (409761) |
|  **Non-Financial Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tangible Capital Assets *(Note 9)* | **177766** | 161631 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid Expenses and Other Non-Financial Assets *(Schedule 11)* | **2224** | 2029 |
|  **Total Non-Financial Assets** | **179990** | 163660 |
|  **Accumulated Deficit** | **(247060)** | (246101) |
|  **Accumulated Deficit is Comprised of:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated Operating Deficit | **(249226)** | (248482) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated Remeasurement Gains | **2166** | 2381 |
|  | **(247060)** | (246101) |

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For additional information, see Contingent Liabilities, Contractual Obligations (Note 11), and Contractual Rights (Note 12).

 **See accompanying Notes and Schedules to the Consolidated Financial Statements.** 

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| **54** | **Consolidated Financial Statements, 2024–2025** |

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| **Province of Ontario**<br> **Consolidated Statement of Change in Net Debt** | **Province of Ontario**<br> **Consolidated Statement of Change in Net Debt** | **Province of Ontario**<br> **Consolidated Statement of Change in Net Debt** |  |
| **For the year ended March 31**<br> **($ Millions)** | 2024–25<br> Budget | **2024–25**<br> **Actual** | 2023–24<br> Restated<br> Actual<br> (*Note 17*)  |
|  **Annual Deficit** | (9806) | **(1090)** | (693) |
| &nbsp;&nbsp; Acquisition of Tangible Capital Assets *(Note 9)* | (22808) | **(24545)** | (18713) |
| &nbsp;&nbsp; Amortization of Tangible Capital Assets *(Note 9)* | 8372 | **8347** | 7969 |
| &nbsp;&nbsp; Proceeds on Sale of Tangible Capital Assets |  | **138** | 301 |
| &nbsp;&nbsp; Losses/(Gains) on Sale of Tangible Capital Assets |  | **20** | (231) |
| &nbsp;&nbsp; Tangible Capital Assets Cost Change Relating to Revaluation of Asset Retirement Obligations *(Note 9)* |  | **(95)** | (440) |
| &nbsp;&nbsp; (Increase)/Decrease in Prepaid Expenses and Other Non-Financial Assets | – | **(195)** | 1253 |
|  | (14436) | **(16330)** | (9861) |
| &nbsp;&nbsp; Contribution Deficit – Ontario Power Generation *(Schedule 9)* |  | **(2)** | (2) |
| &nbsp;&nbsp; Equity Impact – IFRS Adjustment for Ontario Power Generation's Pension, Other Employee Future Benefits Liabilities and Other Costs *(Schedule 9)* | – | **348** | 271 |
| &nbsp;&nbsp; **Increase in Net Debt Excluding Net Remeasurement Gains/Losses** | (24242) | **(17074)** | (10285) |
| &nbsp;&nbsp; Net Remeasurement (Losses)/Gains | – | **(215)** | 2076 |
| &nbsp;&nbsp; **Increase in Net Debt** | (24242) | **(17289)** | (8209) |
| &nbsp;&nbsp; **Net Debt at Beginning of Year** | (414814) | **(409761)** | (399806) |
| &nbsp;&nbsp; Adjustment for Corporations Tax Revenue and Receivables *(Note 17)* | – | **–** | (1746) |
| &nbsp;&nbsp; Adjusted Net Debt at Beginning of Year | (414814) | **(409761)** | (401552) |
| &nbsp;&nbsp; **Net Debt at End of Year** | (439056) | **(427050)** | (409761) |

---

 **See accompanying Notes and Schedules to the Consolidated Financial Statements** 

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| **Province of Ontario**<br> **Consolidated Statement of Change in Accumulated Operating Deficit** | **Province of Ontario**<br> **Consolidated Statement of Change in Accumulated Operating Deficit** | **Province of Ontario**<br> **Consolidated Statement of Change in Accumulated Operating Deficit** |
| **For the year ended March 31**<br> **($ Millions)** | **2024–25** | 2023–24<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restated<br> (*Note 17*) |
| &nbsp;&nbsp; **Accumulated Operating Deficit at Beginning of Year** | **(248482)** | (246312) |
| &nbsp;&nbsp; Adjustment for Corporations Tax Revenue and Receivables *(Note 17)* | **–** | (1746) |
| &nbsp;&nbsp; **Adjusted Accumulated Operating Deficit at Beginning of Year** | **(248482)** | (248058) |
| &nbsp;&nbsp; Annual Deficit | **(1090)** | (693) |
| &nbsp;&nbsp; Contribution Deficit – Ontario Power Generation *(Schedule 9)* | **(2)** | (2) |
| &nbsp;&nbsp; Equity Impact – IFRS Adjustment for Ontario Power Generation's Pension, Other Employee Future Benefits Liabilities and Other Costs *(Schedule 9)* | **348** | 271 |
| &nbsp;&nbsp; **Accumulated Operating Deficit at End of Year** | **(249226)** | (248482) |
| &nbsp;&nbsp; **See accompanying Notes and Schedules to the Consolidated Financial Statements** | &nbsp;&nbsp; **See accompanying Notes and Schedules to the Consolidated Financial Statements** | &nbsp;&nbsp; **See accompanying Notes and Schedules to the Consolidated Financial Statements** |
| **Province of Ontario**<br> **Consolidated Statement of Remeasurement Gains and Losses** |  |  |
| **For the year ended March 31**<br> **($ Millions)** | **2024–25** | 2023–24 |
| &nbsp;&nbsp; **Accumulated Remeasurement Gains at Beginning of Year** | **2381** | 305 |
| &nbsp;&nbsp; **Unrealized Gains/(Losses) Attributable to:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign Exchange | **(2450)** | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives | **1863** | 944 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Portfolio Investments | **85** | 49 |
| &nbsp;&nbsp; **Other Comprehensive Income/(Loss) from Government Business Enterprises<sup>1</sup>** (*Schedule 9*)  | **115** | (58) |
| &nbsp;&nbsp; **Increase in Fair Value of Ontario Nuclear Funds<sup>1</sup>** (*Note 16*) | **195** | 1138 |
| &nbsp;&nbsp; **Reclassified to Consolidated Statement of Operations:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign Exchange | **178** | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivatives | **(182)** | (95) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Portfolio Investments | **(19)** | 84 |
| &nbsp;&nbsp; **Net Remeasurement (Losses)/Gains for the Year<sup>1</sup>** | **(215)** | 2076 |
| &nbsp;&nbsp; **Accumulated Remeasurement Gains at End of Year** | **2166** | 2381 |
| &nbsp;&nbsp;&nbsp; <sup>1</sup> Net remeasurement losses include $525 million remeasurement losses for non-GBE government reporting entities (2023–24, $996 million remeasurement gains), offset by $310 million remeasurement gains for GBEs (related to other comprehensive income from GBEs and net change in fair value of Ontario nuclear funds) (2023–24, $1,080 million gains). | &nbsp;&nbsp;&nbsp; <sup>1</sup> Net remeasurement losses include $525 million remeasurement losses for non-GBE government reporting entities (2023–24, $996 million remeasurement gains), offset by $310 million remeasurement gains for GBEs (related to other comprehensive income from GBEs and net change in fair value of Ontario nuclear funds) (2023–24, $1,080 million gains). | &nbsp;&nbsp;&nbsp; <sup>1</sup> Net remeasurement losses include $525 million remeasurement losses for non-GBE government reporting entities (2023–24, $996 million remeasurement gains), offset by $310 million remeasurement gains for GBEs (related to other comprehensive income from GBEs and net change in fair value of Ontario nuclear funds) (2023–24, $1,080 million gains). |
| &nbsp;&nbsp; **See accompanying Notes and Schedules to the Consolidated Financial Statements.** | &nbsp;&nbsp; **See accompanying Notes and Schedules to the Consolidated Financial Statements.** | &nbsp;&nbsp; **See accompanying Notes and Schedules to the Consolidated Financial Statements.** |

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| **56** | **Consolidated Financial Statements, 2024–2025** |

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| **Province of Ontario**<br> **Consolidated Statement of Cash Flow** | **Province of Ontario**<br> **Consolidated Statement of Cash Flow** | **Province of Ontario**<br> **Consolidated Statement of Cash Flow** |
| **For the year ended March 31**<br> **($ Millions)** | **2024–25** | 2023–24<br> Restated<br> (*Note 17*) |
| &nbsp;&nbsp; **Operating Transactions** | &nbsp;&nbsp; **Operating Transactions** | &nbsp;&nbsp; **Operating Transactions** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Annual Deficit** | **(1090)** | (693) |
| &nbsp;&nbsp;&nbsp;&nbsp; **Non-Cash Items** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of Tangible Capital Assets *(Note 9)* | **8347** | 7969 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Losses/(Gains) on Sale of Tangible Capital Assets | **20** | (231) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contributed Tangible Capital Assets | **(1)** | (45) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-Cash Tangible Capital Assets Funded by Assets Swap | **(4)** | (7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from Investment in Government Business Enterprises *(Schedule 9)*  | **(7465)** | (7427) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment to Opening Accumulated Deficit – Corporations Tax Revenue and Receivables (*Note 17*) | **–** | (1746) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In-Year Remeasurement (Losses)/Gains for Non-Government Business Enterprise Entities | **(525)** | 996 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred (Losses)/Gains Adjustment from Government Business Enterprises *(Schedule 9)* | **(3)** | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Cash Items** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease/(Increase) in Accounts Receivable *(Note 10 and Schedule 6)* | **1447** | (12063) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Increase)/Decrease in Loans Receivable *(Schedule 7)* | **(213)** | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Decrease)/Increase in Accounts Payable and Accrued Liabilities *(Schedule 5)* | **(4015)** | 2818 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in Liability for Pensions and Other Employee Future Benefits *(Note 6)*  | **(47)** | (347) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Decrease)/Increase in Other Liabilities *(Note 7)* | **(145)** | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Decrease)/Increase in Deferred Revenue and Capital Contributions *(Note 5)* | **(702)** | 211 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remittances from Investment in Government Business Enterprises (*Schedule 9*) | **5292** | 5540 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Increase)/Decrease in Prepaid Expenses and Other Non-Financial Assets | **(195)** | 1253 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in Other Assets | **91** | 197 |
| &nbsp;&nbsp; **Cash Provided by/(Applied to) Operating Transactions** | **792** | (3453) |
| &nbsp;&nbsp; **Capital Transactions** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Acquisition of Tangible Capital Assets | **(23209)** | (17769) |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from Sale of Tangible Capital Assets | **138** | 301 |
| &nbsp;&nbsp; **Cash Applied to Capital Transactions** | **(23071)** | (17468) |
| &nbsp;&nbsp; **Investing Transactions** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Portfolio Investments Purchased | **(263312)** | (157269) |
| &nbsp;&nbsp;&nbsp;&nbsp; Portfolio Investments Retired | **256930** | 165363 |
| &nbsp;&nbsp; **Cash (Applied to)/Provided by Investing Transactions** | **(6382)** | 8094 |
| &nbsp;&nbsp; **Financing Transactions** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Long-Term Debt Issued | **53575** | 43869 |
| &nbsp;&nbsp;&nbsp;&nbsp; Long-Term Debt Retired | **(33130)** | (26790) |
| &nbsp;&nbsp;&nbsp;&nbsp; Decrease/(Increase) in Unamortized Discounts, Premiums and Commissions for Long-Term Debt *(Note 2)* | **181** | (1168) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase/(Decrease) in Short-Term Debt | **3785** | (77) |
| &nbsp;&nbsp;&nbsp;&nbsp; Decrease in Other Long-Term Financing *(Note 4)* | **(125)** | (665) |
| &nbsp;&nbsp;&nbsp;&nbsp; Decrease in Derivative Liabilities *(Note 3)* | **(1657)** | (804) |
| &nbsp;&nbsp;&nbsp;&nbsp; (Increase)/Decrease in Derivative Assets (*Note 3*) | **(1559)** | 40 |
| &nbsp;&nbsp; **Cash Provided by Financing Transactions** | **21070** | 14405 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net (Decrease)/Increase in Cash and Cash Equivalents | **(7591)** | 1578 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash and Cash Equivalents at Beginning of Year | **41459** | 39881 |
| &nbsp;&nbsp; **Cash and Cash Equivalents at End of Year** | **33868** | 41459 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash | **16525** | 17227 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash Equivalents | **17343** | 24232 |
| &nbsp;&nbsp; **See accompanying Notes and Schedules to the Consolidated Financial Statements.** | &nbsp;&nbsp; **See accompanying Notes and Schedules to the Consolidated Financial Statements.** | &nbsp;&nbsp; **See accompanying Notes and Schedules to the Consolidated Financial Statements.** |

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| **Consolidated Financial Statements, 2024–2025** | **57** |

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**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS** 

**1. Summary of Significant Accounting Policies** 

**(a) Basis of Accounting** 

The Consolidated Financial Statements are prepared by the government of the Province of Ontario (the Province) in accordance with the public sector accounting standards for governments recommended by the Canadian Public Sector Accounting Board.

**(b) Reporting Entity** 

These financial statements report the activities of the Consolidated Revenue Fund combined with those organizations that are controlled by the Province.

Government Business Enterprises (GBEs), broader public sector (BPS) and other government organizations controlled by the Province are included in these financial statements. Controlled organizations are consolidated once the organizations meet and are reasonably expected to maintain one of the following criteria: i) their revenues, expenses, assets or liabilities are greater than $50 million; or ii) their outside sources of revenue, deficit or surplus are greater than $10 million. A listing of consolidated government organizations is provided in Schedule 8.

Trusts administered by the Province on behalf of other parties are excluded from the reporting entity but are disclosed in Note 13.

**(c) Principles of Consolidation** 

BPS organizations and other government organizations controlled by the Province are consolidated on a line-by-line basis with the assets, liabilities, revenues, expenses, and remeasurement gains and losses of the Province based on the percentage of ownership the government held during the fiscal year. Where appropriate, adjustments are also made to present the accounts of these organizations on a basis consistent with the fiscal year end and accounting policies of the Province, and to eliminate significant interorganizational accounts and transactions.

The activities of GBEs are recorded in the financial statements based on their results prepared in accordance with International Financial Reporting Standards (IFRS) using the modified equity method. The combined net assets of GBEs are included as Investment in Government Business Enterprises on the Consolidated Statement of Financial Position. Their net income is shown as a separate item, Income from Investment in Government Business Enterprises on the Consolidated Statement of Operations. Their other comprehensive income and the unrealized gains and losses arising from fair value change in Ontario Nuclear Funds are included in the Consolidated Statement of Remeasurement Gains and Losses. Less than wholly-owned GBEs (e.g., Hydro One Limited) are reflected using the modified equity method based on the percentage of ownership the government held during the fiscal year.

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**(d) Measurement Uncertainty** 

The preparation of financial statements requires the Province to make estimates and assumptions that affect the amounts of assets, liabilities, revenues and expenses during the reporting period. Uncertainty in the determination of the amounts at which an item is recognized or disclosed in the financial statements is known as measurement uncertainty.

Measurement uncertainty that is material to these financial statements exists in the estimation of Personal Income Tax (PIT), Sales Tax revenues, and Corporations Tax; the valuation of the Canada Health Transfer and Canada Social Transfer; the valuation of pensions and other employee future benefits obligations; the valuation of derivatives; the estimation of liabilities for contingent liabilities including estimates for contaminated sites, asset retirement obligations, Aboriginal treaty rights and land claim settlements; other liabilities; net book value of tangible capital assets; and the tobacco settlement.

The PIT revenue estimate of $55.7 billion (2023–24, $50.8 billion, see Schedule 1) may be subject to subsequent revisions based on information available in the future related to past year tax return processing. Sales Tax revenues of $39.4 billion (2023–24, $39.9 billion, see Schedule 1) is also subject to uncertainty for similar reasons.

The Corporations Tax revenue estimate of $27.8 billion (2023–24, $23.1 billion, see Schedule 1) is based on amounts of tax assessed to June 30, 2025. Final amounts of taxes assessed may differ materially from these estimates. The methodology of calculating Corporations Tax is back-tested and the estimate is revised as necessary.

The estimation of the Canada Health Transfer of $20.4 billion (2023–24, $19.3 billion, see Schedule 1) and Canada Social Transfer of $6.6 billion (2023–24, $6.4 billion, see Schedule 1), is subject to uncertainty because of variances between the estimated and actual Ontario share of the Canada-wide population.

Pension and other employee future benefits liability of $13.7 billion (2023–24, $13.8 billion, see Note 6), is subject to measurement uncertainty because actual results may differ significantly from the Province's best long-term estimate of expected results. For example, the difference between actual results and actuarial assumptions regarding return on investment of pension fund assets and health care cost trend rates for retiree benefits may be significant.

Derivative instrument fair values of $6.1 billion in assets (2023–24, $4.5 billion, see Note 3) and $5.2 billion in liabilities (2023–24, $6.9 billion, see Note 3) are subject to measurement uncertainty due to variances between projected and actual market performance and economic conditions. The fair value of financial instruments is determined by valuation techniques discussed in the Financial Instruments Fair Value Hierarchy section in Note 3.

There is measurement uncertainty surrounding the estimation of liabilities for contaminated sites of $2.6 billion (2023–24, $2.5 billion, see Note 7). The Province may be responsible for cleanup costs that cannot be reasonably estimated due to several factors, including insufficient information related to the nature and extent of contamination, timing of costs well into the future (e.g., unknown impacts of future technological advancements) and the challenges of remote locations and unique contaminations.

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There is measurement uncertainty surrounding the estimation of liabilities for asset retirement obligations (ARO) of $4.3 billion (2023–24, $4.3 billion, see Note 7). These estimates are subject to uncertainty due to several factors, including but not limited to insufficient information on the type and extent of designated substances (e.g., asbestos), indeterminate timing of settlement, and the impact of project design on costs.

The Province's investment in Ontario Power Generation (OPG) includes asset retirement obligations for fixed asset removal and nuclear waste management, discounted for the time value of money. These obligations are estimated based on the expected amount and timing of future cash expenditures based on plans for fixed asset removal and nuclear waste management. Such estimates are subject to uncertainty in the nature and extent of cost estimates, the timing of costs being incurred, changes in the discount rate applied to the cash flow estimates, and other unanticipated changes in fixed asset removal and nuclear waste management techniques.

There is measurement uncertainty surrounding the estimate of liabilities for contingent liabilities, including estimates for Aboriginal treaty rights and land claim settlements. Estimates for these liabilities are recorded when the contingency is determined to be likely and measurable, however the actual amount of any settlement may vary from the estimate recorded.

The net book value of tangible capital assets of $177.8 billion (2023–24, $161.6 billion, see Note 9) is subject to uncertainty because of differences between estimated useful lives of the assets and their actual useful lives.

The estimated receivable of $3.4 billion from the tobacco settlement (see Note 10) is subject to measurement uncertainty due to several factors, including the long-term timing of expected receipts and potential changes in future cash flow projections.

Estimates are based on the best information available at the time of preparation of the financial statements and are reviewed annually to reflect new information as it becomes available. By their very nature, estimates are subject to measurement uncertainty. Therefore, actual results may differ materially from the Province's estimates.

**(e) Significant Accounting Policies** 

**Revenue**

Tax revenues are recognized in the period in which the taxable event occurs and when they are authorized by legislation, or the ability to assess and collect the tax has been provided through legislative convention. Reported tax revenues include estimated revenues for the current period, adjustments between the estimated revenues of previous years and actual amounts, and revenues from reassessments relating to prior years.

Personal Income Tax revenue for the period is accrued based on an estimate of current year tax assessments plus late-arriving assessments/reassessments for prior years and an estimate for the first calendar quarter of the following tax year. The estimate of Personal Income Tax for the current year is based on actual tax assessments up to June 30 each year plus an extrapolated estimate of current year taxes remaining to be assessed after June 30.

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The Harmonized Sales Tax component of sales tax revenue is collected by the Government of Canada under a Comprehensive Integrated Tax Coordination Agreement and is remitted to the Province net of tax credits. The remittances are based on the federal Department of Finance's best estimates, which are subject to periodic updates.

Corporations Tax revenue for the period is accrued based on an estimate of current year tax assessments plus late-arriving assessments/reassessments for prior years and an estimate for the first calendar quarter of the following tax year. The estimate of Corporations Tax for the current year is based on actual tax assessments up to June 30 each year plus an extrapolated estimate of current year taxes remaining to be assessed after June 30.

Refundable personal and corporate income tax credits constitute transfers made through the tax system that are reported as expenses. Non-refundable PIT and Corporations Tax credits constitute tax concessions (relief of taxes paid), which are accounted for as revenue offsets by debiting the related tax revenue.

Transfers from the Government of Canada are recognized as revenues in the period during which the transfer is authorized by the federal government and all eligibility criteria are met, except if the stipulations related to the federal government funding create an obligation that meet the definition of a liability. Once a liability is recognized, the transfer is recorded in revenue as the obligations related to these stipulations are met.

Interest and investment income includes interest earned from financial instruments and income generated from portfolio investments. Interest and investment income is recognized in the period that it is earned. Interest revenue ceases to be accrued on receivables when the collectability of either principal or interest is not reasonably assured.

Other revenues from transactions with performance obligations, for example, fees or royalties from the sale of goods or rendering of services, are recognized as the Province satisfies performance obligations by providing the promised goods or services to the payor. Other revenues from transactions with no performance obligations, for example, fines and penalties, are recognized when the Province has the authority to claim or retain an inflow of economic resources and when a past transaction or event results in an asset. Amounts received prior to the end of the year that will be recognized in the subsequent fiscal year are deferred and reported as liabilities (see Liabilities).

**Expense**

Expenses are recognized in the fiscal year that the event occurs and resources are consumed.

Transfer payments are recognized in the year that the transfer is authorized, and all eligibility criteria have been met by the recipient. Any transfers paid are deemed to have met all eligibility criteria.

Employee future benefits such as pensions and other employee future benefits such as non-pension retirement benefits and entitlements upon termination are recognized as expenses over the years in which the benefits are earned by employees. These expenses are the government's share of the current year's cost of employee benefits, interest on the net benefits' liability or asset, amortization of actuarial gains or losses, cost or gain on plan amendments and other adjustments.

The costs of owned or leased capital assets including buildings, transportation infrastructure, machinery and equipment, and information technology infrastructure are amortized and recognized as expenses over their estimated useful lives on a straight-line basis.

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| **Consolidated Financial Statements, 2024–2025** | **61** |

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Interest and other debt servicing charges includes: i) interest on outstanding debt ii) realized foreign exchange gains and losses on debt iii) amortization of debt discounts, premiums and commissions; iv) certain unrealized foreign exchange gains and losses; and v) other debt servicing costs.

**Liabilities**

Liabilities are recorded to the extent that they represent present obligations of the Province to outside parties as a result of events and transactions occurring prior to the end of the fiscal year. The settlement of liabilities will result in economic sacrifice in the future.

Liabilities include accounts payable and accrued liabilities; debt; obligations under Public Private Partnerships (P3s); deferred revenue and capital contributions; liabilities for pensions and other employee future benefits; derivative liabilities; liability for contaminated sites (see Note 7); asset retirement obligations (see Note 7); probable losses on loan guarantees; and contingencies when it is likely that a loss will be realized, and the amount can be reasonably determined. Liabilities also include obligations to GBEs.

Deferred revenues represent unfulfilled performance obligations, or unspent externally restricted receipts from third parties. Deferred revenues are recorded into revenue in the period the amounts received are used for the purposes specified, or other restrictions are satisfied. Deferred capital contributions represent the unamortized amount of contributions received from third parties to construct or acquire tangible capital assets. These contributions are recognized as deferred capital contributions and recorded into revenue over the useful life of the associated tangible capital assets.

P3s are a financing and procurement model available to the Province to use private sector partners to design, build, acquire or better new or existing infrastructure. Assets procured via P3s are recognized as tangible capital assets, and the related obligations are recognized as other long-term financing liabilities for financial liability models and/or deferred revenue for P3 performance obligations arising from user pay obligations as the assets are constructed. At initial recognition, the total liability reflects the cost of the tangible capital asset. The total liability for combined consideration arrangements is allocated between financial liability and performance obligation based on the portion of the asset cost financed through respective models. Financial liabilities for P3s are subsequently measured at amortized cost using the implicit contract rate.

**Debt**

Debt consists of treasury bills, commercial paper, medium- and long-term notes, savings bonds, debentures and loans, excluding instruments held by the Province. Debt is measured at amortized cost. Occasionally, the Province purchases its own debt for a variety of reasons, including for cash management purposes as well for reducing stress to the Canadian payment system, especially in fiscal years where there are large single-day maturities.

**Pensions and Other Employee Future Benefits** 

The liabilities for pensions and other employee future benefits are calculated on an actuarial basis using the government's best estimates of future inflation rates, investment returns, employee salary levels and other underlying assumptions, including where applicable, the government's borrowing rate. When actual plan experience of pensions and other retirement benefits differs from what is expected, or when assumptions are revised, actuarial gains and losses may arise. These gains and losses are amortized over the expected average remaining service life of plan members for each respective plan.

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Liabilities for selected employee future benefits (such as pensions and other retirement benefits) represent the Province's share of the actuarial present value of benefits attributed to services rendered by employees and former employees, less market-related value of plan assets. The market-related values are determined in a rational and systematic manner, in order to recognize market value asset gains and losses over a period of up to five years.

**Derivatives** 

Derivatives are financial contracts, the values of which are derived from underlying instruments. The Province uses derivatives for the purpose of economically managing risk associated with interest cost on debt. The Province does not use derivatives for speculative purposes. Derivative assets and liabilities are measured at fair value.

**Assets** 

Assets are resources controlled by the Province, from which it has reasonable expectation of deriving future benefit. Assets are recognized in the year the transaction gives the government control of the benefit.

The following are not recognized in the Consolidated Statement of Financial Position:

&nbsp;&nbsp;&nbsp;&nbsp;● Intangible assets inherited by right of the Crown or internally developed;

&nbsp;&nbsp;&nbsp;&nbsp;● Historical or cultural works of art; and

&nbsp;&nbsp;&nbsp;&nbsp;● Natural resources and land inherited by right of the Crown such as Crown lands, forests, water and mineral resources.

**Financial Assets** 

Financial assets are resources that can be used to pay existing liabilities or finance future operations. They include cash and cash equivalents, portfolio investments, accounts receivable, loans receivable, derivative assets, and investments in Government Business Enterprises.

Cash and cash equivalents include cash or other short-term, liquid, low-risk instruments that are readily convertible to cash, typically within three months or less. Cash and cash equivalents are measured at cost or amortized cost.

Portfolio investments primarily consist of non-Ontario government bonds, other bonds, Guaranteed Investment Certificates, pooled funds and equity securities. The majority of bonds are measured at cost or amortized cost. Equity securities quoted in an active market are measured at fair value. When there is a loss in value of a portfolio investment that is other than a temporary decline, an impairment loss is recognized in the Consolidated Statement of Operations. Impairment losses on portfolio investments are not reversed if there is a subsequent increase in investment value.

Accounts receivable are recorded at cost. A valuation allowance is recorded when the collection of the receivable is considered doubtful.

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| **Consolidated Financial Statements, 2024–2025** | **63** |

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Loans receivable are recorded at amortized cost. A valuation allowance is recorded when collection of the loans receivable is considered doubtful. Loans receivable include loans to GBEs, municipalities, as well as loans under the student loans program. Loans receivable with significant concessionary terms are considered in part to be grants and are recorded on the date of issuance at face value, discounted by the amount of the grant portion. The grant portion is recognized as an expense at the date of issuance of the loan or when the concession is provided. The amount of the loan discount is amortized to revenue over the term of the loan.

Investment in Government Business Enterprises represents the net assets of GBEs recorded on the modified equity basis as described under Principles of Consolidation.

**Tangible Capital Assets** 

Tangible capital assets are recorded at historical cost, less accumulated amortization. Historical cost includes the costs directly related to the acquisition, design, construction, development, improvement or betterment, as well as the estimated cost to settle liabilities for asset retirement obligations. Cost includes overhead directly attributable to construction and development, as well as interest cost related to financing during construction. All tangible capital assets, except assets under construction, land and land improvements with an indefinite life, are amortized over the estimated useful lives of the assets on a straight-line basis. The useful lives of the Province's tangible capital assets have been estimated as:

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| | |
|:---|:---|
|  Buildings | 20 to 40 years |
|  Dams and Engineering Structures | 20 to 80 years |
|  Transportation Infrastructure | 10 to 75 years |
|  Machinery and Equipment | 5 to 20 years |
|  Information Technology | 3 to 15 years |
|  Other | 3 to 50 years |

---

Maintenance and repair costs are recognized as an expense when incurred.

**Other Non-Financial Assets** 

Other non-financial assets include prepaid expenses, inventories of supplies for consumption and purchased intangible assets. Inventories of supplies for consumption and distribution such as personal protective equipment (PPE) are valued at the lower of historical cost (using the weighted average cost method) and replacement cost at fiscal year-end. Write-downs are recorded for PPE inventory where its cost exceeds the replacement cost at year-end. Obsolete, damaged, or expired PPE inventory are written off.

Purchased intangible assets representing broadcast rights are recorded at historical cost, less accumulated amortization. These assets are amortized on a straight-line basis over their estimated useful lives, which are reviewed annually. Impairment testing is conducted when indicators of impairment are identified.

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| | |
|:---|:---|
| **64** | **Consolidated Financial Statements, 2024–2025** |

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##### [**Table of Contents**](#toc)
**Financial Instrument Gains and Losses** 

Financial instruments include primary instruments such as cash, receivables, portfolio investments, payables, debt and derivative instruments such as interest rate swaps and currency swaps. Unrealized gains and losses arising from changes in the fair value of financial instruments are recognized in the Consolidated Statement of Remeasurement Gains and Losses, except where an irrevocable election under paragraph 19A of Section PS 2601, *Foreign Currency Translation*, has been made to recognize the unrealized exchange gains and losses on selected foreign currency denominated instruments in the Consolidated Statement of Operations instead of the Consolidated Statement of Remeasurement Gains and Losses. This election is made on an instrument-by-instrument basis.

Realized gains and losses arising from changes in the fair value of financial instruments and gains and losses from advanced rate setting and delayed rate setting transactions over the life of the financial instrument are recognized in the Consolidated Statement of Operations.

**(f) Future Changes in Accounting Standards** 

**The Conceptual Framework for Financial Reporting in the Public Sector** 

The new Conceptual Framework provides a meaningful foundation for formulating consistent financial reporting standards. The Conceptual Framework will replace current guidance in Section PS 1000 and Section PS 1100. A Conceptual Framework is a coherent set of interrelated concepts underlying accounting and financial reporting standards. It prescribes the nature, function and limits of financial accounting and reporting. It is the foundation on which standards are developed and professional judgment is applied. While the impact of any changes on the Province's Consolidated Financial Statements is not reasonably determinable at this time, the Province intends to implement the Conceptual Framework effective April 1, 2026, for the fiscal year 2026–27.

**Section PS 1202 – Financial Statement Presentation** 

The new standard provides updated guidance on the general and specific requirements for the presentation of information in general purpose financial statements. Section PS 1202 will replace Section PS 1201. While the impact of any changes on the Province's Consolidated Financial Statements is not reasonably determinable at this time, the Province intends to implement the standard effective April 1, 2026, for the fiscal year 2026–27.

**2. Debt** 

The Province borrows in both domestic and international markets. Debt issued of $462.0 billion as at March 31, 2025 (2023–24, $437.6 billion), is composed mainly of bonds and debentures issued in the short- and long-term domestic and international public capital markets and non-public debt held by certain federal pension funds. Debt presented in this note comprises Debt Issued for Provincial Purposes of $467.9 billion (2023–24, $436.3 billion) and Ontario Electricity Financial Corporation (OEFC) Debt of $11.0 billion (2023–24, $12.0 billion), less investments in Ontario bonds and treasury bills of $12.5 billion (2023–24, $6.1 billion) and less unamortized discounts, premiums and commissions of $4.4 billion (2023–24, $4.5 billion). The following table presents the maturity schedule of the Province's outstanding debt, by currency of repayment, expressed in Canadian dollars. See Note 4 for debt of BPS organizations and obligations under P3 arrangements.

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| | |
|:---|:---|
| **Consolidated Financial Statements, 2024–2025** | **65** |

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##### [**Table of Contents**](#toc)

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Debt**<br> **As at March 31**<br> **($ Millions)** | **Debt**<br> **As at March 31**<br> **($ Millions)** | **Debt**<br> **As at March 31**<br> **($ Millions)** | **Debt**<br> **As at March 31**<br> **($ Millions)** | **Debt**<br> **As at March 31**<br> **($ Millions)** | **2025** | 2024 |
| **Currency** | **Canadian<br>Dollar** | **U.S. Dollar** | **Euro** | **Other<br> Currencies<sup>1</sup>** | **Total** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total |
| &nbsp;&nbsp; **Maturing in:** |  |  |  |  |  |  |
| &nbsp;&nbsp; 2025 |  |  |  |  |  | 49875 |
| &nbsp;&nbsp; 2026 | 48044 | 10464 | 2332 | 328 | **61168** | 32901 |
| &nbsp;&nbsp; 2027 | 15444 | 8266 |  | 4459 | **28169** | 27206 |
| &nbsp;&nbsp; 2028 | 20765 | 5750 | 1554 |  | **28069** | 27746 |
| &nbsp;&nbsp; 2029 | 21809 | 4313 |  | 103 | **26225** | 23217 |
| &nbsp;&nbsp; 2030 | 16438 | 8985 | – | 686 | **26109** | – |
| &nbsp;&nbsp; 1–5 years | 122500 | 37778 | 3886 | 5576 | **169740** | 160945 |
| &nbsp;&nbsp; 6–10 years | 95609 | 9703 | 7384 | 2137 | **114833** | 102829 |
| &nbsp;&nbsp; 11–15 years | 39388 |  |  |  | **39388** | 29286 |
| &nbsp;&nbsp; 16–20 years | 26349 |  | 276 |  | **26625** | 39036 |
| &nbsp;&nbsp; 21–25 years | 57226 |  | 248 |  | **57474** | 44399 |
| &nbsp;&nbsp; 26–50<sup>2</sup> years | 70896 | – | – | – | **70896** | 71807 |
| &nbsp;&nbsp; **Total Issued<sup>3,4,6</sup>** | **411968** | **47481** | **11794** | **7713** | **478956** | 448302 |
| &nbsp;&nbsp; Less: Holdings of Own Ontario Bonds and Treasury Bills<sup>5</sup> | (12549) | – | – | – | **(12549)** | (6125) |
| &nbsp;&nbsp; Less: Unamortized Discounts, Premiums and Commissions | (4249) | (67) | (23) | (24) | **(4363)** | (4544) |
| &nbsp;&nbsp; **Total** | **395170** | **47414** | **11771** | **7689** | **462044** | 437633 |
| &nbsp;&nbsp; **Debt Issued for Provincial Purposes** | 400921 | 47481 | 11794 | 7713 | **467909** | 436320 |
| &nbsp;&nbsp; **OEFC** | 11047 | – | – | – | **11047** | 11982 |
| &nbsp;&nbsp; **Total Issued** | **411968** | **47481** | **11794** | **7713** | **478956** | 448302 |
| &nbsp;&nbsp; Less: Holdings of Own Ontario Bonds and Treasury Bills<sup>5</sup> | (12549) | – | – | – | **(12549)** | (6125) |
| &nbsp;&nbsp; Less: Unamortized Discounts, Premiums and Commissions | (4249) | (67) | (23) | (24) | **(4363)** | (4544) |
| &nbsp;&nbsp; **Total** | **395170** | **47414** | **11771** | **7689** | **462044** | 437633 |
| &nbsp;&nbsp; **Effective Interest Rates (Weighted Average)<sup>6</sup>** |  |  |  |  |  |  |
| &nbsp;&nbsp; **2025** | **3.56%** | **2.63%** | **0.81%** | **1.86%** | **3.37%** |  |
| &nbsp;&nbsp; 2024 | 3.59% | 2.10% | 0.95% | 1.28% | – | 3.35% |

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<sup>1</sup> Other currencies comprise the Australian dollar, Swiss franc and UK pound sterling.

<sup>2</sup> The longest term to maturity is to June 2, 2062.

<sup>3</sup> Original foreign currency converted to Canadian dollar equivalent.

<sup> 4</sup> Total foreign currency-denominated debt as at March 31, 2025, was $67.0 billion (2023–24, $56.4 billion). Of that, $66.3 billion or 99.0 per cent (2023–24, $55.8 billion or 98.9 per cent) was fully hedged to Canadian dollars. The remaining 1.0 per cent (2023–24, 1.1 per cent) of foreign debt was unhedged as follows: $650 million (2023–24, $601 million) Swiss franc-denominated debt. Unhedged foreign currency debt as a percentage of total debt was 0.1 per cent (2023–24, 0.1 per cent). 

<sup> 5</sup> As at March 31, 2025, debt issued for provincial purposes purchased and held by the Province denominated in Canadian dollars includes long-term debt of $10.1 billion (2023–24, $5.0 billion), and short-term debt of $2.4 billion (2023–24, $1.1 billion). 

<sup> 6</sup> The effective interest rates based on total debt range from 0 per cent to 10.7 per cent (2023–24, 0 per cent to 10.7 per cent). 

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| | |
|:---|:---|
| **66** | **Consolidated Financial Statements, 2024–2025** |

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##### [**Table of Contents**](#toc)

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| | | |
|:---|:---|:---|
| **Debt**<br> **As at March 31**<br> **($ Millions)** | **2025** | 2024 |
| &nbsp;&nbsp; **Debt Payable to/of:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Public Investors | **472175** | 440347 |
| &nbsp;&nbsp;&nbsp;&nbsp; Canada Pension Plan Investment Board | **6325** | 7458 |
| &nbsp;&nbsp;&nbsp;&nbsp; School Board Trust Debt | **450** | 484 |
| &nbsp;&nbsp;&nbsp;&nbsp; Canada Mortgage and Housing Corporation | **6** | 13 |
| &nbsp;&nbsp; **Total Issued** | **478956** | 448302 |
| &nbsp;&nbsp; Less: Holdings of Own Ontario Bonds and Treasury Bills | **(12549)** | (6125) |
| &nbsp;&nbsp; Less: Unamortized Discounts, Premiums and Commissions | **(4363)** | (4544) |
| &nbsp;&nbsp; **Total** | **462044** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;437633 |

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Fair value of debt outstanding approximates the amounts at which debt instruments could be exchanged in a current transaction between willing parties. Most of the Province's debt is valued at fair value using public market quotations. Where these are not available, fair value is estimated using discounted cash flows. These estimates are affected by the assumptions made concerning discount rates and the amount and timing of future cash flows.

The estimated fair value of debt as at March 31, 2025, was $450.4 billion (2023–24, $411.9 billion). The fair value of debt does not reflect the effect of related derivative contracts.

**School Board Trust Debt** 

A School Board Trust was created in June 2003 to permanently refinance debt incurred by 55 school boards. The Trust issued 30-year sinking fund debentures amounting to $891 million and provided $882 million of the proceeds to the 55 school boards in exchange for the irrevocable right to receive future transfer payments from the Province related to this debt. An annual transfer payment is made by the Ministry of Education to the Trust's sinking fund under the School Board Operating Grant program to retire the debt over 30 years. This debt, recorded net of the sinking fund of $441 million (2023–24, $407 million), is included in the Province's debt.

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| | |
|:---|:---|
| **Consolidated Financial Statements, 2024–2025** | **67** |

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##### [**Table of Contents**](#toc)
**3. Derivatives and Risk Management** 

The Province employs various risk management strategies and operates within strict risk exposure limits to ensure that exposure to financial risk is managed in a prudent and cost-effective manner. A variety of strategies are used, including the use of derivative financial instruments (derivatives).

Derivatives are financial contracts, the value of which is derived from underlying instruments. The Province uses derivatives to economically hedge interest rate risk and foreign currency risk. Economic hedges are created primarily through swaps, which are legal contracts under which the Province agrees with another party to exchange cash flows based on one or more notional amounts using stipulated reference interest rates for a specified period. Swaps allow the Province to offset its existing obligations and thereby effectively convert them into obligations with more cost-effective characteristics. Other derivative instruments used by the Province include forward foreign exchange contracts, forward rate agreements, futures and options.

**Notional Value of Derivatives** 

The table below presents a maturity schedule of the Province's derivatives, by type, outstanding as at March 31, 2025, based on the notional amounts of the contracts. Notional amounts represent the volume of outstanding derivative contracts and are not indicative of credit risk, market risk or actual cash flows.

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  **Notional Value and Fair Value of Derivatives** | **Notional Value and Fair Value of Derivatives** | **Notional Value and Fair Value of Derivatives** | **Notional Value and Fair Value of Derivatives** | **Notional Value and Fair Value of Derivatives** | **Notional Value and Fair Value of Derivatives** | **Notional Value and Fair Value of Derivatives** | **Notional Value and Fair Value of Derivatives** | <u>*Notional Value*</u> | <u>*Notional Value*</u> | <u>*Fair Value*</u> | <u>*Fair Value*</u> |
|  **As at March 31**<br> **($ Millions)** |  |  |  |  |  |  |  | **2025** | 2024 | **2025** | 2024 |
|  **Maturity in**<br> **Fiscal Year** | **2026** | **2027** | **2028** | **2029** | **2030** | **6–10<br>Years** | **Over 10<br>Years** | **Total** | Total | **Total** | Total |
|  Interest Rate Swaps<sup>1</sup> | 7847 | 11243 | 8838 | 9309 | 18219 | 26109 | 4999 | **86564** | 69385 | **(2116)** | (1295) |
|  Cross Currency Swaps | 10041 | 11512 | 8320 | 4131 | 8738 | 25679 | 494 | **68915** | 73026 | **2951** | (1055) |
|  Forward Foreign Exchange Contracts | 5395 |  |  |  |  |  |  | **5395** |  | **29** |  |
|  Others<sup>2</sup> | 36 | – | – | – | – | – | – | **36** | (18) | **2** | – |
|  **Total** | **23319** | **22755** | **17158** | **13440** | **26957** | **51788** | **5493** | **160910** | 142393 | **866** | (2350) |

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<sup>1</sup> Includes notional value of $1.8 billion (2023–24, $2.0 billion) of interest rate swaps related to loans receivable held by a consolidated entity. 

<sup>2</sup> Future contracts held by Metrolinx for 44.9 million litres of diesel fuel maturing in 2025–26 (2023–24, future contracts for 47.0 million litres of diesel fuel maturing in 2024–25).

Interest rate and cross-currency swaps are valued using a discounted cash flow method. Forward rates are used to determine floating rate cash flows occurring in the future. Cash flows are discounted using the respective currency's yield curve. Inputs to the models are market observable and may include interest rate yield curves and foreign exchange rates.

Foreign exchange forwards and foreign exchange swaps are valued by discounting the notional amounts using the respective currency's yield curve and converting the amounts using the spot Canadian dollar exchange rate.

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| | |
|:---|:---|
| **68** | **Consolidated Financial Statements, 2024–2025** |

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##### [**Table of Contents**](#toc)
**Fair Value Hierarchy** 

Financial instruments measured at fair value are grouped into one of three levels based on the degree to which the fair value is observable. The hierarchy is as follows:

● Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

● Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

● Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The fair value of financial instruments not quoted in an active market is determined by appropriate valuation techniques, including forward pricing and swap models, using present value calculations. The models incorporate various inputs including forward interest rate curves.

The following table presents the financial instruments measured at fair value in the Consolidated Statement of Financial Position, classified using the fair value hierarchy.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Fair Value Hierarchy**<br> **As at March 31**<br> **($ Millions)** | **Level 1**<br> **$** | **Level 2**<br> **$** | **Level 3**<br> **$** | **Total**<br> **$** |
|  | **2025** | **2025** | **2025** | **2025** |
| &nbsp;&nbsp; Derivative Assets | **3** | **6084** | **3** | **6090** |
| &nbsp;&nbsp; Derivative Liabilities | **(28)** | **(5185)** | **(11)** | **(5224)** |
| &nbsp;&nbsp; Portfolio Investments | **3970** | **4579** | **356** | **8905** |
| &nbsp;&nbsp; **2025 Total** | **3945** | **5478** | **348** | **9771** |
|  | **2024** | **2024** | **2024** | **2024** |
| &nbsp;&nbsp; Derivative Assets | 8 | 4503 | 20 | **4531** |
| &nbsp;&nbsp; Derivative Liabilities | (1) | (6762) | (118) | **(6881)** |
| &nbsp;&nbsp; Portfolio Investments | 3869 | 3416 | 96 | **7381** |
| &nbsp;&nbsp; **2024 Total** | **3876** | **1157** | **(2)** | **5031** |

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There were no transfers between levels during 2025 and 2024.

**Market Risk** 

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market factors. Market risk encompasses a variety of financial risks such as foreign exchange risk, interest rate risk and commodity price risk. The Province recognizes that it is subject to market risk primarily through foreign exchange and interest rate risk.

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| | |
|:---|:---|
| **Consolidated Financial Statements, 2024–2025** | **69** |

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##### [**Table of Contents**](#toc)
**Foreign Currency Risk** 

Foreign currency or exchange rate risk is the risk that foreign currency investments, debt principal and interest payments, as well as foreign currency transactions, will vary in Canadian dollar terms due to fluctuations in foreign exchange rates. To manage currency risk, the Province uses derivative contracts, including forward foreign exchange contracts, futures, options and swaps to convert foreign currency cash flows into Canadian dollar cash flows. Most derivative contracts economically hedge the underlying debt by matching all the critical terms to achieve effectiveness. The term of forward foreign exchange contracts used for hedging is usually shorter than the term of the underlying debt, however hedge effectiveness is maintained by continuously rolling the forward foreign exchange contract over the remaining term of the underlying debt, or until replaced with a long-term derivative contract.

The Province has elected to apply Section PS 2601.19A election (see Note 1e, Financial Instrument Gains and Losses) for i) economically hedged groups of financial instruments where the underlying instrument is hedged to term by multiple shorter term derivative instruments; and ii) derivatives denominated in foreign currency with a shorter term than the underlying provincial debt instrument being hedged.

The current market risk policy allows the amount of unhedged foreign currency debt principal, net of foreign currency holdings, to reach a maximum of 3.0 per cent of Total Debt Issued for Provincial Purposes and OEFC.

As at March 31, 2025, the respective unhedged levels for Total Debt issued for Provincial Purposes and OEFC were 0.1 and 0.0 per cent (2023–24, 0.1 and 0.0 per cent). As of March 31, 2025, unhedged debt was limited to debt issued in Swiss francs. A one-Swiss Rappen appreciation of the Swiss currency, relative to the Canadian dollar, would result in Swiss franc debt increasing by $11 million (2023–24, $9 million increase) and a corresponding remeasurement loss of $11 million (2023–24, losses of $9 million).

Total foreign exchange loss recognized in the Consolidated Statement of Operations for 2024–25 was $48 million (2023–24, a gain of $35 million), reflecting a $52 million loss for 2024–25 (2023–24, a gain of $40 million) for those instruments for which the Province has elected to apply Section PS 2601.19A, offset by a gain of $4 million (2023–24, a loss of $5 million) related to other foreign exchange and revaluation transactions.

**Interest Rate Risk** 

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Province is subject to interest rate risk through its debt, variable rate investments (i.e., bonds, fixed income securities), variable rate debts, and other long-term financing.

Interest and other debt servicing charges expense may also vary as a result of changes in interest rates. In respect of Debt Issued for Provincial Purposes and OEFC debt, the risk is measured as net interest rate resetting exposure, which is the floating rate exposure, plus fixed rate debt maturing within the next 12-month period, net of liquid reserves as a percentage of Debt Issued for Provincial Purposes and OEFC debt, respectively.

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| | |
|:---|:---|
| **70** | **Consolidated Financial Statements, 2024–2025** |

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##### [**Table of Contents**](#toc)
The current market risk policy limits net interest rate resetting exposure for Debt Issued for Provincial Purposes and OEFC debt to a maximum of 35 per cent. As at March 31, 2025, the net interest rate resetting exposure for Debt Issued for Provincial Purposes and OEFC debt was 5.9 per cent and 32.1 per cent, respectively (2023–24, 7.0 per cent and 21.4 per cent).

If interest rates had been 100 basis points higher or lower and all other variables were held constant, the Province's interest and other debt servicing charges for the year ended March 31, 2025 would increase/decrease by approximately $795 million (2024: increase/decrease by $712 million).

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| | | | | |
|:---|:---|:---|:---|:---|
| **Interest Rate Risk**<br> **As at March 31**<br> **($ Millions)** | **2025** | **2025** | 2024 | 2024 |
| **Interest Rate Risk**<br> **As at March 31**<br> **($ Millions)** | **-100 Basis Points** | **100 Basis Points** | -100 Basis Points | 100 Basis Points |
| &nbsp;&nbsp; **Decrease/(Increase) to Annual Deficit** | **795** | **(795)** | 712 | (712) |
| &nbsp;&nbsp; **Increase/(Decrease) to Remeasurement Gains** | **121** | **(121)** | 321 | (308) |

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**Liquidity Risk** 

Liquidity risk is the risk that the Province will not be able to meet its current short-term financial obligations. To reduce liquidity risk, the Province maintains liquid reserves — that is, cash and portfolio investments (Note 8) adjusted for collateral at levels that are expected to meet future cash requirements and give flexibility in the timing of issuing debt. The Province is subject to its liquidity risk through its accounts payable, derivatives, current portion of long-term debt, and long-term debt. To manage its liquidity risk, the Province performs extensive budgeting exercises, ongoing monitoring of its short-term cash flows, and has high liquid securities that can easily be converted to cash to ensure it meets all short-term obligations. Additionally, in some cases, the Province may have access to credit facilities or operating funds. Pledged assets are considered encumbered for liquidity purposes while collateral held, that can be sold or repledged, is a source of liquidity. In addition, the Province has short-term note programs as alternative sources of liquidity.

**Collateral** 

The Province has entered into securities repurchase agreements and collateralized swap agreements with certain counterparties. Under the terms of those agreements, the Province may be required to pledge and/or receive assets relating to obligations to the counterparties. In the normal course of business, these pledged securities will be returned to the pledgor when there are no longer any outstanding obligations.

As at March 31, 2025, the Province has pledged assets in the carrying amount of $788 million (2023–24, $3,079 million), which would be included in portfolio investments and/or cash and cash equivalents.

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| | |
|:---|:---|
| **Consolidated Financial Statements, 2024–2025** | **71** |

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##### [**Table of Contents**](#toc)
**Credit Risk** 

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Province is subject to credit risk through its cash and cash equivalents, accounts receivable, loans receivable, portfolio investments and other financial assets. The Province holds cash accounts in federally regulated chartered banks.

The use of derivatives introduces credit risk, which is the risk of a counterparty defaulting on contractual derivative obligations in which the Province has an unrealized gain. The table below presents the credit risk associated with the derivative financial instrument portfolio, measured through the replacement value of derivative contracts, as at March 31, 2025.

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| | | |
|:---|:---|:---|
| **Credit Risk Exposure**<br> **As at March 31**<br> **($ Millions)** | **2025** | 2024 |
|  Gross Credit Risk Exposure | **6450** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4839 |
|  Less: Netting | **(5123)** | (4154) |
|  **Net Credit Risk Exposure** | **1327** | 685 |
|  Less: Collateral Received | **(1213)** | (670) |
|  **Net Credit Risk Exposure (Net of Collateral)** | **114** | 15 |

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The Province manages its credit risk exposure from derivatives by, among other things, dealing only with high-credit-quality counterparties and regularly monitoring compliance to credit limits. In addition, the Province enters into contractual agreements (master agreements) that provide for termination netting and, if applicable, payment netting with most of its counterparties. Gross Credit Risk Exposure represents the loss that the Province would incur if every counterparty to which it had credit risk exposure were to default at the same time, and the contracted netting provisions were not exercised or could not be enforced. Net Credit Risk Exposure is the loss after the mitigating impact of these netting provisions. Net Credit Risk Exposure (Net of Collateral) is the potential loss to the Province after mitigation by the collateral received from counterparties.

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|:---|:---|
| **72** | **Consolidated Financial Statements, 2024–2025** |

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##### [**Table of Contents**](#toc)
**4. Other Long-Term Financing** 

Other Long-Term Financing comprises the total debt of the BPS organizations and obligations under P3 arrangements using the financial liability model.

Other Long-Term Financing of $19.2 billion as at March 31, 2025 (2023–24, $18.0 billion), includes BPS Debt of $6.1 billion (2023–24, $5.7 billion) and P3 Obligations of $13.1 billion (2023–24, $12.3 billion). The following table presents the maturity schedule of other long-term financing by type of financing.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Other Long-Term Financing**<br> **As at March 31**<br> **($ Millions)** |  |  | **2025** | 2024 |
| &nbsp;&nbsp; **Type of Financing** | **BPS Debt** **<sup>1</sup>** | **P3 Obligations** | **Total** | Total |
| &nbsp;&nbsp; **Maturing in:** |  |  |  |  |
| &nbsp;&nbsp; 2024–25 |  |  |  | 4449 |
| &nbsp;&nbsp; 2025–26 | 1536 | 3520 | **5056** | 946 |
| &nbsp;&nbsp; 2026–27 | 407 | 1055 | **1462** | 665 |
| &nbsp;&nbsp; 2027–28 | 298 | 1604 | **1902** | 1807 |
| &nbsp;&nbsp; 2028–29 | 253 | 627 | **880** | 523 |
| &nbsp;&nbsp; 2029–30 | 214 | 283 | **497** | – |
| &nbsp;&nbsp; 1–5 years | 2708 | 7089 | **9797** | 8390 |
| &nbsp;&nbsp; Year 6 and thereafter | 3353 | 6046 | **9399** | 9635 |
| &nbsp;&nbsp; **Total** | 6061 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13135 | **19196** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18025 |

---

<sup>1</sup> Interest on BPS debt is included in Interest and Other Debt Servicing Charges. The effective interest rate for BPS debt by each arrangement ranges from 0 per cent to 19 per cent (2023–24, 0 per cent to 10 per cent).

P3 contracts under the financial liability model mainly consist of construction or betterment projects related to transportation infrastructure, such as GO rail expansion and highways, and buildings, such as hospitals, prisons, and complexes (see Note 9 on Tangible Capital Assets). Under P3 contracts, payments by the Province cover the capital portion related to the cost of the infrastructure assets and certain contracts also cover the service portion related to the operating and maintenance cost over the term of the P3 arrangements.

---

| | |
|:---|:---|
| **Consolidated Financial Statements, 2024–2025** | **73** |

---

------

##### [**Table of Contents**](#toc)
**5. Deferred Revenue and Capital Contributions** 

---

| | | |
|:---|:---|:---|
| **Deferred Revenue and Capital Contributions**<br> **As at March 31**<br> **($ Millions)** | **2025** | 2024 |
| &nbsp;&nbsp; Deferred Revenue: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Broader Public Sector Organizations | **3723** | 4668 |
| &nbsp;&nbsp;&nbsp;&nbsp; Teranet Inc. | **746** | 764 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other<sup>1</sup> | **1868** | 2002 |
| &nbsp;&nbsp; Total Deferred Revenue | **6337** | 7434 |
| &nbsp;&nbsp; Deferred Capital Contributions | **10404** | 10009 |
| &nbsp;&nbsp; **Total** | **16741** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17443 |

---

<sup>1</sup> Includes $128 million (2023–24, $131 million) related to P3 performance obligations measured under the user-pay model. 

In 2010–11, the Province renewed its long-standing business partnership with Teranet Inc. (Teranet) by extending Teranet's exclusive licences to provide electronic land registration and writs services in the Province for an additional 50 years. The Province received approximately a $1.0 billion upfront payment for the transaction, which is amortized into revenue over the life of the contract.

P3 assets under the P3 user-pay model include buildings and transportation infrastructure. The Province has the rights to receive the P3 assets at the end of the P3 arrangements. Certain P3 contracts include renewal options or termination options.

---

| | |
|:---|:---|
| **74** | **Consolidated Financial Statements, 2024–2025** |

---

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##### [**Table of Contents**](#toc)
**6. Pensions and Other Employee Future Benefits** 

The Province sponsors several pension plans. It is the sole sponsor of the Public Service Pension Plan (PSPP) and the Provincial Judges' Pension Plan (PJPP), and a joint sponsor of the Ontario Public Service Employees Union Pension Plan (OPSEUPP) and the Ontario Teachers' Pension Plan (OTPP). In addition to the provincially sponsored plans, the Province also reports in its consolidated financial statements pension benefits for employees in the hospital and colleges sectors, which are provided by the Healthcare of Ontario Pension Plan (HOOPP) and the Colleges of Applied Arts and Technology Pension Plan (CAATPP), respectively.

As permitted under Canadian public sector accounting standards, the Province elects to use an earlier pension measurement date, December 31, in preparing the consolidated financial statements as at March 31, as long as no significant changes relevant to the valuation of the plans occurs between these two dates. The Province has applied this reporting practice consistently.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Pensions and Other Employee Future Benefits Liability (Asset)** | **Pensions and Other Employee Future Benefits Liability (Asset)** | **Pensions and Other Employee Future Benefits Liability (Asset)** | **Pensions and Other Employee Future Benefits Liability (Asset)** | **Pensions and Other Employee Future Benefits Liability (Asset)** | **Pensions and Other Employee Future Benefits Liability (Asset)** | **Pensions and Other Employee Future Benefits Liability (Asset)** |
| **As at March 31**<br> **($ Millions)** | **2025** | 2024 | **2025** | 2024 | **2025** | 2024 |
|  | **Pensions** | Pensions | **Other<br> Employee<br>Future<br>Benefits** | Other<br> Employee<br>Future<br>Benefits | **Total** | Total |
| &nbsp;&nbsp; Obligation for Benefits | **185048** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;175970 | **12043** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11469 | **197091** | 187439 |
| &nbsp;&nbsp; Less: Plan Fund Assets | **(245882)** | (231819) | **(769)** | (723) | **(246651)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(232542) |
| &nbsp;&nbsp; (Excess)/Deficiency of Assets Over Obligations<sup>1,2</sup> | **(60834)** | (55849) | **11274** | 10746 | **(49560)** | (45103) |
| &nbsp;&nbsp; Unamortized Actuarial Gains (Losses) | **21874** | 23394 | **1430** | 1655 | **23304** | 25049 |
| &nbsp;&nbsp; Accrued Liability (Asset) | **(38960)** | (32455) | **12704** | 12401 | **(26256)** | (20054) |
| &nbsp;&nbsp; Valuation Allowance<sup>3</sup> | **39992** | 33837 | – | – | **39992** | 33837 |
| &nbsp;&nbsp; **Total Liability** | **1032** | 1382 | **12704** | 12401 | **13736** | 13783 |

---

<sup>1</sup> This amount comprises $64,212 million (2023–24, $57,688 million) pertaining to pension plans with excess assets over obligations; and $3,378 million (2023–24, $1,839 million) pertaining to pension plans with excess obligations over assets. 

<sup>2</sup> All other employee future benefits have excess obligations over assets.

<sup>3</sup> The valuation allowance is related to the net pension assets for the OTPP, OPSEUPP, HOOPP and CAATPP.

---

| | |
|:---|:---|
| **Consolidated Financial Statements, 2024–2025** | **75** |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Pensions and Other Employee Future Benefits Expense** | **Pensions and Other Employee Future Benefits Expense** | **Pensions and Other Employee Future Benefits Expense** | **Pensions and Other Employee Future Benefits Expense** | **Pensions and Other Employee Future Benefits Expense** |
| **For the year ended March 31**<br> **($ Millions)** | **2025** | **2025** | **2025** | 2024 |
|  | **Pensions** | **Other Employee<br>Future Benefits** | **Total** | Total |
| &nbsp;&nbsp; Cost of Benefits | **4925** | **1568** | **6493** | 6028 |
| &nbsp;&nbsp; Amortization of Actuarial (Gains) Losses | **(2563)** | **(124)** | **(2687)** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2376) |
| &nbsp;&nbsp; Cost on Plan Amendment or Curtailment | **247** | **–** | **247** |  |
| &nbsp;&nbsp; Recognition of Unamortized Experience Gains | **(247)** | **–** | **(247)** |  |
| &nbsp;&nbsp; Employee and Other Employers' Contributions | **(510)** | **–** | **(510)** | (476) |
| &nbsp;&nbsp; Interest (Income) Expense | **(3526)** | **305** | **(3221)** | (2768) |
| &nbsp;&nbsp; Change in Valuation Allowance<sup>1</sup> | **6154** | **–** | **6154** | 5222 |
| &nbsp;&nbsp; **Total** | **4480** | **1749** | **6229** | 5630 |

---

<sup>1</sup> The valuation allowance is related to the net pension assets for OTPP, OPSEUPP, HOOPP and CAATPP.

---

| | | |
|:---|:---|:---|
| **Pensions and Other Employee Future Benefits Expense by Plan and by Type** | **Pensions and Other Employee Future Benefits Expense by Plan and by Type** | **Pensions and Other Employee Future Benefits Expense by Plan and by Type** |
| **For the year ended March 31**<br> **($ Millions)** | **2025** | 2024 |
| &nbsp;&nbsp; Ontario Teachers' Pension Plan<sup>1</sup> | **1684** | 1652 |
| &nbsp;&nbsp; Public Service Pension Plan<sup>2</sup> | **424** | 291 |
| &nbsp;&nbsp; Ontario Public Service Employees Union Pension Plan<sup>2</sup>  | **299** | 261 |
| &nbsp;&nbsp; Healthcare of Ontario Pension Plan<sup>3</sup> | **1684** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1562 |
| &nbsp;&nbsp; Colleges of Applied Arts and Technology Pension Plan<sup>4</sup> | **307** | 315 |
| &nbsp;&nbsp; Provincial Judges' Pension Plan<sup>2</sup> | **82** | 103 |
| &nbsp;&nbsp; Total Pensions | **4480** | 4184 |
| &nbsp;&nbsp; Other employee future benefits – Retirement benefits<sup>2</sup> | **1749** | 1446 |
| &nbsp;&nbsp; **Total Pensions and Other Employee Future Benefits<sup>5</sup>** | **6229** | 5630 |

---

<sup>1</sup> The OTPP expense is included in the Education expense in the Consolidated Statement of Operations and is disclosed separately in Schedule 4.

<sup>2</sup> The PSPP, OPSEUPP and PJPP Pension expense and Other Employee Future Benefits — Retirement Benefits expense for Ontario Public Services employees are included in the Other expense in the Consolidated Statement of Operations and are classified under Employee and Pensioner Benefits under Treasury Board Secretariat in Schedule 4. 

<sup>3</sup> The HOOPP pension expense is included in the Health expense in the Consolidated Statement of Operations.

<sup>4</sup> The CAATPP pension expense is included in the Postsecondary Education expense in the Consolidated Statement of Operations.

<sup>5</sup> Total Pensions and Other Employee Future Benefits expense is reported in Schedule 3. 

---

| | |
|:---|:---|
| **76** | **Consolidated Financial Statements, 2024–2025** |

---

------

##### [**Table of Contents**](#toc)
**Pensions** 

PSPP, OPSEUPP and OTPP are contributory defined benefit plans that provide the Province's employees, as well as elementary and secondary school teachers and administrators, with a defined amount of retirement income based on a formula. The formula takes into account a member's best five-year average salary and length of service. The retirement benefits are indexed to changes in the Consumer Price Index to provide protection against inflation. The plan benefits are financed by contributions from plan members and the Province, as well as investment earnings. Plan members normally contribute 8 to 12 per cent of their salaries to these plans. The Province either matches these contributions or makes contributions based on actuarial reports, depending on the funding structure of each plan. The obligations for benefits and the plan fund assets for OTPP and OPSEUPP exclude those employers not consolidated by the Province.

The PJPP is comprised of a funded registered defined benefit pension plan and an unfunded supplemental defined benefit pension plan, as well as a partially funded retirement compensation arrangement (RCA), for eligible judges whose pension benefits under the PJPP registered plan are limited by the federal *Income Tax Act* or federal Tax Regulations. PJPP provides eligible judges with a defined amount of retirement income based on a formula that takes into account an amount equal to 2 per cent of the judge's average salary for their final three years of service. Plan members normally contribute 7 per cent of their salary to this plan.

The Province is also responsible for sponsoring the Public Service Supplementary Benefits Plan (PSSBP) and the Ontario Teachers' Retirement Compensation Arrangement. The PSSBP was converted to an RCA, effective January 1, 2022, which provides additional pension benefits to members whose contribution and benefits under PSPP are limited by the federal *Income Tax Act*. The Ontario Pension Board acts as administrator of the RCA, trustee of the RCA assets and oversees the investments of the RCA. Expenses and liabilities of these plans are included in the Pensions Expense and Pensions Liability reported in the above tables.

HOOPP is a multi-employer pension plan covering employees of the Province's health care community. CAATPP is a multi-employer pension plan covering employees of the Colleges of Applied Arts and Technology in Ontario, the Ontario College Application Services and the Ontario College Library Services. Both plans are accounted for as multi-employer defined benefit plans that provide eligible members with a retirement income based on a formula. Like the plans that are sponsored by the government, the formula takes into account a member's best five-year average salary and length of service in the plan. The plan benefits are financed by contributions from participating members and employers and by investment earnings. The Province records a percentage of the net obligations of HOOPP and CAATPP based on the ratio of employer to employee contributions.

The Province does not have unilateral control over the decisions regarding contribution levels or benefit changes for either the HOOPP or CAATPP multi-employer plans as it is not a member of the committees responsible for these decisions. Therefore, a valuation allowance is recorded to write down the net asset position in these plans, if any. The Province has applied a full valuation allowance against the net pension assets of the OTPP and OPSEUPP.

The obligation for benefits and plan fund assets of the above plans is based on actuarial accounting valuations that are performed annually. Funding of these plans is based on statutory actuarial funding valuations undertaken at least once every three years.

---

| | |
|:---|:---|
| **Consolidated Financial Statements, 2024–2025** | **77** |

---

------

##### [**Table of Contents**](#toc)
Information on contributory defined benefit plans is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **OTPP** | **PSPP** | **OPSEU** | **HOOPP** | **CAATPP** | **PJPP** |
| &nbsp;&nbsp; **Province's Best Estimates as of December 31, 2024** | &nbsp;&nbsp; **Province's Best Estimates as of December 31, 2024** | &nbsp;&nbsp; **Province's Best Estimates as of December 31, 2024** | &nbsp;&nbsp; **Province's Best Estimates as of December 31, 2024** | &nbsp;&nbsp; **Province's Best Estimates as of December 31, 2024** | &nbsp;&nbsp; **Province's Best Estimates as of December 31, 2024** |  |
| &nbsp;&nbsp; Inflation rate | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% |
| &nbsp;&nbsp; Salary escalation rate | 2.75% | 2.75% | 2.75% | 4.00% | 3.25% | 3.00% |
| &nbsp;&nbsp; Discount rate and expected rate of return on pension assets | 6.25% | 6.25% | 6.25% | 6.25% | 6.25% | 5.50% |
| &nbsp;&nbsp; Actual return on pension assets<sup>1</sup> | 9.31% | 8.00% | 9.42% | 9.46% | 16.38% | 7.04% |
| &nbsp;&nbsp; **Accounting Actuarial Valuation as of December 31, 2024** | &nbsp;&nbsp; **Accounting Actuarial Valuation as of December 31, 2024** | &nbsp;&nbsp; **Accounting Actuarial Valuation as of December 31, 2024** | &nbsp;&nbsp; **Accounting Actuarial Valuation as of December 31, 2024** | &nbsp;&nbsp; **Accounting Actuarial Valuation as of December 31, 2024** | &nbsp;&nbsp; **Accounting Actuarial Valuation as of December 31, 2024** |  |
| &nbsp;&nbsp; Market value of pension fund assets<sup>2,3</sup> ($ millions) | 129515 | 34261 | 12723 | 59090 | 10349 | 545 |
| &nbsp;&nbsp; Market-related value of assets<sup>2</sup> ($ millions) | 128049 | 35436 | 12659 | 59434 | 9764 | 540 |
| &nbsp;&nbsp; Employer contributions<sup>4</sup> ($ millions) | 1695 | 860 | 328 | 1685 | 332 | 73 |
| &nbsp;&nbsp; Employee contributions<sup>5</sup> ($ millions) | 2099 | 617 | 322 | 1379 | 332 | 7 |
| &nbsp;&nbsp; Benefit payments<sup>1</sup> (including transfers to other plans) ($ millions) | 3986 | 1922 | 651 | 1845 | 321 | 77 |
| &nbsp;&nbsp; Number of active members (approximately) | 185000 | 52288 | 50352 | 292000 | 39689 | 291 |
| &nbsp;&nbsp; Average age of active members | 44.9 | 44.8 | 43.6 | 42.0 | 46.9 | 57.1 |
| &nbsp;&nbsp; Expected remaining service life of the employees (years) | 13.9 | 11.1 | 12.1 | 11.6 | 14.2 | 11.6 |
| &nbsp;&nbsp; Number of pensioners including survivors (approximately) | 158000 | 41997 | 43824 | 187000 | 19743 | 369 |
| &nbsp;&nbsp; **Province's Best Estimates as of December 31, 2023** | &nbsp;&nbsp; **Province's Best Estimates as of December 31, 2023** | &nbsp;&nbsp; **Province's Best Estimates as of December 31, 2023** | &nbsp;&nbsp; **Province's Best Estimates as of December 31, 2023** | &nbsp;&nbsp; **Province's Best Estimates as of December 31, 2023** | &nbsp;&nbsp; **Province's Best Estimates as of December 31, 2023** |  |
| &nbsp;&nbsp; Inflation rate | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% |
| &nbsp;&nbsp; Salary escalation rate | 2.75% | 2.75% | 2.75% | 4.00% | 3.25% | 3.00% |
| &nbsp;&nbsp; Discount rate and expected rate of return on pension assets | 6.25% | 6.25% | 6.25% | 6.25% | 6.25% | 4.75% |
| &nbsp;&nbsp; Actual return on pension assets<sup>1</sup> | 1.90% | 2.81% | 5.11% | 8.96% | 10.88% | 4.45% |
| &nbsp;&nbsp; **Accounting Actuarial Valuation as of December 31, 2023** | &nbsp;&nbsp; **Accounting Actuarial Valuation as of December 31, 2023** | &nbsp;&nbsp; **Accounting Actuarial Valuation as of December 31, 2023** | &nbsp;&nbsp; **Accounting Actuarial Valuation as of December 31, 2023** | &nbsp;&nbsp; **Accounting Actuarial Valuation as of December 31, 2023** | &nbsp;&nbsp; **Accounting Actuarial Valuation as of December 31, 2023** |  |
| &nbsp;&nbsp; Market value of pension fund assets<sup>2,3</sup> ($ millions) | 120499 | 31894 | 11911 | 54459 | 8844 | 505 |
| &nbsp;&nbsp; Market-related value of assets<sup>2</sup> ($ millions) | 120092 | 34558 | 11979 | 55854 | 8825 | 511 |
| &nbsp;&nbsp; Employer contributions<sup>4</sup> ($ millions) | 1643 | 841 | 282 | 1562 | 306 | 66 |
| &nbsp;&nbsp; Employee contributions<sup>5</sup> ($ millions) | 1643 | 518 | 268 | 1269 | 306 | 7 |
| &nbsp;&nbsp; Benefit payments<sup>1</sup> (including transfers to other plans) ($ millions) | 3764 | 1810 | 632 | 1739 | 294 | 68 |
| &nbsp;&nbsp; Number of active members (approximately) | 184000 | 50151 | 50493 | 281000 | 36878 | 282 |
| &nbsp;&nbsp; Average age of active members | 44.9 | 44.8 | 43.6 | 43.0 | 47.2 | 57.7 |
| &nbsp;&nbsp; Expected remaining service life of the employees (years) | 14.3 | 10.8 | 12.1 | 13.4 | 14.0 | 11.1 |
| &nbsp;&nbsp; Number of pensioners including survivors (approximately) | 156000 | 41519 | 43175 | 179000 | 19269 | 353 |

---

<sup>1</sup> Figures may vary from pension plan's published returns due to the Province's best estimates.

<sup> 2</sup> Reflects the Province's share, which excludes organizations not consolidated by Ontario. The government's share of the risks and benefits under OTPP is 49.0 per cent (2023–24, 49.0 per cent), under PSPP is 100 per cent (2023–24, 100 per cent), under OPSEUPP is 47.4 per cent (2023–24, 47.4 per cent), under HOOPP is 48.0 per cent (2023–24, 48.4 per cent), under CAATPP is 40.5 per cent (2023–24, 41.2 per cent) and under PJPP is 100 per cent (2023–24, 100 per cent). 

<sup> 3</sup> As at December 31, 2024, the pension fund assets includes $18,818 million (2023–24, $22,166 million) bonds and securities issued by the Province. 

<sup> 4</sup> Employer contributions paid during the Province's fiscal year. Employer contributions excludes employers' contributions made by non-consolidated agencies participating in PSPP and OPSEUPP and excludes other employers' contributions to OTPP. PSPP employer contributions includes special payments of $294 million (2023–24, $292 million). 

<sup>5</sup> Employee contributions paid during the calendar year excludes contributions of employees employed by non-consolidated agencies.

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| | |
|:---|:---|
| **78** | **Consolidated Financial Statements, 2024–2025** |

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##### [**Table of Contents**](#toc)
**Other Employee Future Benefits** 

Other Employee Future Benefits are non-pension retirement benefits, post-employment benefits, compensated absences and termination benefits.

**Non-Pension Retirement Benefits** 

The Province provides dental, basic life insurance, supplementary health and hospital benefits to eligible retired employees through a group insured benefit plan. Certain PSPP members and OPSEUPP members who had not accrued the minimum eligibility requirement of 10 years of pension service before January 1, 2017, are required to have 20 years of pension service and retire to an immediate unreduced pension to be eligible to receive the post-retirement insured benefits. Further, such eligible members who commenced receipt of a pension on or after January 1, 2017, have the option to either participate in the current legacy post-retirement insured benefits plan and pay 50 per cent of the premium costs, or to participate in the new retiree-focused post-retirement benefits plan, at no cost to the member.

Optional enrolment in the retiree-focused plan, at full cost to the retiree, is also available to employees hired before January 1, 2017, and who later retire to an immediate unreduced pension based on a minimum 10 years of pension service and employees hired on and after January 1, 2017, who later retire to an immediate unreduced pension based on a minimum 20 years of pension service.

The liability for non-pension retirement benefits of $9.3 billion as at March 31, 2025 (2023–24, $9.2 billion), is included in the Other Employee Future Benefits Liability. The expense for 2024–25 of $307 million (2023–24, $356 million) is included in the Other Employee Future Benefits Expense.

The discount rate used in the non-pension retirement benefits calculation for 2024–25 is 4.6 per cent (2023–24, 4.75 per cent). The discount rate used by BPS organizations in the non-pension retirement benefits calculation for 2024–25 ranges from 2.75 per cent to 5.00 per cent (2023–24, 3.40 per cent to 6.84 per cent). The expected average remaining service life of the employees for non-pension retirement benefits is 13.8 years (2023–24, 13.8 years).

**Post-Employment Benefits, Compensated Absences and Termination Benefits** 

The Province provides, on a self-insured basis, workers' compensation benefits, long-term disability benefits and regular benefits to employees who are on long-term disability.

For all other employees, subject to terms set out in collective agreements and in the Management Board of Cabinet Compensation Directive as applicable, the Province provides termination pay equal to one week's salary for each year of service up to a maximum of 50 per cent of their annual salary. Employees who have completed one year of service, but less than five years, are also entitled to termination pay in the event of death, retirement or release from employment. All employees who resign are not eligible for any severance pay in respect to service after December 2011.

The total post-employment benefits liability of $3.4 billion as at March 31, 2025 (2023–24, $3.2 billion) is included in the Other Employee Future Benefits Liability. The total post-employment benefits expense of $1.4 billion in 2024–25 (2023–24, $1.1 billion) is included in the Other Employee Future Benefits Expense.

---

| | |
|:---|:---|
| **Consolidated Financial Statements, 2024–2025** | **79** |

---

------

##### [**Table of Contents**](#toc)
The discount rate used in the post-employment benefits, compensated absences and termination benefits calculations for 2024–25 is 4.25 per cent (2023–24, 4.50 per cent). The discount rate used by BPS organizations for the post-employment benefits in 2024–25 ranges from 2.72 per cent to 5.37 per cent (2023–24, 3.40 per cent to 4.80 per cent).

**7. Other Liabilities** 

---

| | | |
|:---|:---|:---|
| **Other Liabilities**<br> **As at March 31**<br> **($ Millions)** | **2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |
| &nbsp;&nbsp; Liabilities for Asset Retirement Obligations | **4348** | 4296 |
| &nbsp;&nbsp; Liabilities for Contaminated Sites | **2585** | 2517 |
| &nbsp;&nbsp; Other Pension Liabilities | **145** | 142 |
| &nbsp;&nbsp; Other Funds and Liabilities | **2291** | 2429 |
| &nbsp;&nbsp; **Total** | **9369** | 9384 |

---

**Liabilities for Asset Retirement Obligations** 

The Province records liabilities related to the legal obligations where the Province is obligated to incur costs to retire a tangible capital asset. A liability of $4.3 billion as at March 31, 2025 (2023–24, $4.3 billion) has been recorded for activities to fulfill the obligation based on estimation for the cost of these activities.

A significant part of asset retirement obligations results from the removal and disposal of designated substances such as asbestos from provincial buildings, and closure and post closure activities related to solid waste landfill sites. When recording the liability for assets in productive use, the estimated cost and subsequent changes to the estimate are capitalized and amortized over the asset's useful life. For assets that are not in productive use, these costs are expensed.

To estimate the liability for asbestos and other designated substances in provincial buildings, assessment reports that include the type and quantity of the substances are used with experience and expert advice to determine the cost of retiring the substance. For buildings without an assessment, an estimate is based on the cost for similar buildings until more asset specific data is available.

To estimate the solid waste landfill liability, site closure plans are used to estimate the closure and post-closure costs. Before a closure plan is approved, information on the site is used to predict the activities that will be required to close, maintain and monitor the site, based on the experience related to other sites considering the content and condition of the site based on operational monitoring and reporting. These activities, such as capping or ground water monitoring, are costed using rates determined though experience and expert advice.

The Province discounts significant obligations that have reliable cash flow projections, and are estimated using the present value of future cash flows, otherwise they are recorded at current cost. The discount rate used reflects the risks specific to the asset retirement liability and the entity that will settle the liability. Subsequently, accretion of the discounted liability due to the passage of time is recorded as an in-year expense. During the year, for the asset retirement obligations that used present value techniques to measure the liabilities, the discount rate utilized ranged from 2.6 per cent to 4.7 per cent (2023–24, 3.0 per cent to 5.1 per cent).

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| | |
|:---|:---|
| **80** | **Consolidated Financial Statements, 2024–2025** |

---

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##### [**Table of Contents**](#toc)
A reconciliation of the beginning and ending aggregated carrying amount of the ARO liability is as below:

---

| | | |
|:---|:---|:---|
| **Liabilities for Asset Retirement Obligations**<br> **As at March 31**<br> **($ Millions)** | **2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |
| &nbsp;&nbsp; **Liabilities for Asset Retirement Obligations at Beginning of Year** | **4296** | 4095 |
| &nbsp;&nbsp; Liabilities Incurred During the Year | **30** | 61 |
| &nbsp;&nbsp; Increase in Liabilities Reflecting Changes in the Estimate of Liabilities<sup>1</sup> | **120** | 461 |
| &nbsp;&nbsp; Increase in Liabilities due to Accretions<sup>2</sup> | **21** | 23 |
| &nbsp;&nbsp; Valuation and Other Adjustments | **(37)** | (298) |
| &nbsp;&nbsp; Liabilities Settled During the Year | **(82)** | (46) |
| &nbsp;&nbsp; **Liabilities for Asset Retirement Obligations at End of Year<sup>3</sup>** | **4348** | 4296 |

---

<sup>1</sup> Reflecting changes in the estimated cash flows and the discount rate.

<sup> 2</sup> Increase in the carrying amount of a liability due to the passage of time for those obligations the Province has discounted. 

<sup>3</sup> As at March 31, 2025, approximately 87 per cent (2023–24, 86 per cent) of liabilities for asset retirement obligations pertained to asbestos and other designated substances in buildings, with the remaining balance mainly related to solid waste landfills.

**Liabilities for Contaminated Sites** 

The Province reports environmental liabilities related to the management and remediation of contaminated sites where it is obligated or likely obligated to incur such costs. A contaminated sites liability of $2.6 billion (2023–24, $2.5 billion) for 277 sites (2023–24, 271 sites) has been recorded based on environmental assessments or estimations for those sites where an assessment has not been conducted.

The Province's ongoing efforts to assess contaminated sites may result in additional environmental remediation liabilities related to newly identified sites, or changes in the assessments or intended use of existing sites, including mine sites. Any changes to the Province's liabilities for contaminated sites will be accrued in the year in which they are assessed as likely and measurable.

**Other Pension Liabilities** 

Other pension liabilities include pension and benefit funds related to the Justice of the Peace, the Deputy Ministers, OPSEU and the Associate Judges Supplemental Pension Plan.

**Other Funds and Liabilities** 

Other Funds and Liabilities include externally restricted funds and other long-term liabilities.

---

| | |
|:---|:---|
| **Consolidated Financial Statements, 2024–2025** | **81** |

---

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##### [**Table of Contents**](#toc)
**8.** **Portfolio Investments** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Portfolio Investments**<br> **As at March 31**<br> **($ Millions)** | **2025** | **2025** | **2025** | 2024 |
|  | **Cost/**<br> **Amortized Cost** | **Fair Value** | **Carrying Value** | Carrying Value |
| &nbsp;&nbsp; Bonds | **6205** | **2862** | **9067** | 16555 |
| &nbsp;&nbsp; Add: Bonds Purchased under Resale Agreements | **16874** | **2** | **16876** | 6500 |
| &nbsp;&nbsp; Less: Bonds Sold under Repurchase Agreements | **(1831)** | **–** | **(1831)** | (3476) |
| &nbsp;&nbsp; **Total Bonds** | **21248** | **2864** | **24112** | 19579 |
| &nbsp;&nbsp; Deposits and GICs | **1327** | **3574** | **4901** | 4259 |
| &nbsp;&nbsp; Other<sup>1</sup> | **820** | **2468** | **3288** | 2081 |
| &nbsp;&nbsp; **Total Portfolio Investments** | **23395** | **8906** | **32301** | 25919 |

---

<sup>1</sup> Includes equity instruments quoted in active markets with market value of $640 million (2023–24, $619 million). 

A resale agreement is an agreement between two parties where the Province purchases and subsequently resells a security at a specified price on a specified date. A repurchase agreement is an agreement between two parties where the Province sells and subsequently repurchases a security at a specified price on a specified date.

Other portfolio investments' carrying value primarily consists of $2,200 million (2023–24, $1,165 million) pooled funds and $801 million (2023–24, $766 million) equity securities.

---

| | |
|:---|:---|
| **82** | **Consolidated Financial Statements, 2024–2025** |

---

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##### [**Table of Contents**](#toc)
**9. Tangible Capital Assets** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Tangible Capital Assets**<br> **As at March 31**<br> **($ Millions)** | **Tangible Capital Assets**<br> **As at March 31**<br> **($ Millions)** | **Tangible Capital Assets**<br> **As at March 31**<br> **($ Millions)** | **Tangible Capital Assets**<br> **As at March 31**<br> **($ Millions)** | **Tangible Capital Assets**<br> **As at March 31**<br> **($ Millions)** | **Tangible Capital Assets**<br> **As at March 31**<br> **($ Millions)** | **Tangible Capital Assets**<br> **As at March 31**<br> **($ Millions)** | **Tangible Capital Assets**<br> **As at March 31**<br> **($ Millions)** | **Tangible Capital Assets**<br> **As at March 31**<br> **($ Millions)** |
|  | **Land** | **Buildings** | **Transportation<br>Infrastructure** | **Machinery and<br>Equipment** | **Information<br>Technology** | **Other** | **2025** | 2024 |
| &nbsp;&nbsp; **Cost** | &nbsp;&nbsp; **Cost** | &nbsp;&nbsp; **Cost** | &nbsp;&nbsp; **Cost** | &nbsp;&nbsp; **Cost** | &nbsp;&nbsp; **Cost** | &nbsp;&nbsp; **Cost** | &nbsp;&nbsp; **Cost** | &nbsp;&nbsp; **Cost** |
| &nbsp;&nbsp; Opening Balance | 22634 | 120718 | 65447 | 17532 | 11341 | 13647 | **251319** | 235143 |
| &nbsp;&nbsp; Additions | 2423 | 8603 | 9017 | 1333 | 1279 | 1890 | **24545** | 18713 |
| &nbsp;&nbsp; Disposals | (9) | (256) | (716) | (366) | (560) | (39) | **(1946)** | (2977) |
| &nbsp;&nbsp; Revaluation | – | 60 | 8 | – | – | 27 | **95** | 440 |
| &nbsp;&nbsp; **Closing Balance** | **25048** | **129125** | **73756** | **18499** | **12060** | **15525** | **274013** | 251319 |
| &nbsp;&nbsp; **Accumulated Amortization** | &nbsp;&nbsp; **Accumulated Amortization** | &nbsp;&nbsp; **Accumulated Amortization** | &nbsp;&nbsp; **Accumulated Amortization** | &nbsp;&nbsp; **Accumulated Amortization** | &nbsp;&nbsp; **Accumulated Amortization** | &nbsp;&nbsp; **Accumulated Amortization** | &nbsp;&nbsp; **Accumulated Amortization** | &nbsp;&nbsp; **Accumulated Amortization** |
| &nbsp;&nbsp; Opening Balance |  | 47386 | 17733 | 13317 | 7341 | 3911 | **89688** | 84626 |
| &nbsp;&nbsp; Additions |  | 3743 | 2139 | 959 | 1052 | 454 | **8347** | 7969 |
| &nbsp;&nbsp; Disposals | – | (167) | (715) | (317) | (557) | (32) | **(1788)** | (2907) |
| &nbsp;&nbsp; **Closing Balance** | **–** | **50962** | **19157** | **13959** | **7836** | **4333** | **96247** | 89688 |
| &nbsp;&nbsp; **Net Book Value** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp; **2025** | **25048** | **78163** | **54599** | **4540** | **4224** | **11192** | **177766** |  |
| &nbsp;&nbsp; 2024 | 22634 | 73332 | 47714 | 4215 | 4000 | 9736 | – | 161631 |

---

Land includes land acquired for transportation infrastructure, parks, buildings and other program use, as well as land improvements that have an indefinite life and are not being amortized. Land excludes Crown lands acquired by right.

Buildings include administrative and service structures, dams and engineering structures.

Transportation Infrastructure includes provincial highways, railways, bridges and related structures and facilities, but excludes land and buildings.

Machinery and Equipment consists mostly of hospital equipment.

Information Technology consists of computer hardware and software.

Other includes leased assets, vehicles, aircraft and other miscellaneous tangible capital assets owned by the government and its consolidated organizations.

Assets under construction have been included within the various asset categories presented above. The total value of assets under construction as at March 31, 2025, is $51.6 billion (2023–24, $42.0 billion). Capitalized interest for the fiscal year 2024–25 is $1,221 million (2023–24, $978 million). The cost of tangible capital assets under capital leases is $1,019 million (2023–24, $1,015 million), and their accumulated amortization is $506 million (2023–24, $469 million).

Amortization expense for the fiscal year 2024–25 totalled $8.3 billion (2023–24, $8.0 billion).

---

| | |
|:---|:---|
| **Consolidated Financial Statements, 2024–2025** | **83** |

---

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##### [**Table of Contents**](#toc)
**10. Tobacco Settlement** 

On March 6, 2025, the Ontario Superior Court of Justice approved a $32.5 billion settlement agreement in Canada under the Companies' Creditors Arrangement Act arising from several legal claims against three major tobacco manufacturers, including compensation for smoking-related health care costs incurred by provincial and territorial governments. The Province is owed approximately $7.1 billion under this agreement. This receivable represents non-recurring revenue recorded in 2024–25. The net present value of the receivable is $3.4 billion calculated based on a discount rate which reflects the Province's expected rate of return and the transaction-specific risks tied to this receivable such as the uncertainty of payments contingent on the companies' long-term profitability.

On August 29, 2025, the Province received the upfront payment of $1.9 billion from the tobacco companies in accordance with the stipulations set out in the settlement agreement established on March 6, 2025. The remaining $5.2 billion will be paid in future annual instalments over approximately the next 30 years, based on a percentage of the tobacco companies' after-tax income, until the total amount is paid.

**11. Contingent Liabilities** 

**Obligations Guaranteed by the Province** 

Loan guarantees include guarantees or indemnifications provided by the Province or government organizations. The authorized limit for loans guaranteed by the government as at March 31, 2025, was $1.8 billion (2023–24, $1.8 billion). The outstanding loans guaranteed amounted to $0.6 billion as at March 31, 2025 (2023–24, $0.5 billion).

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Loan Guarantees**<br> **For the year ended March 31**<br> **($ Millions)** | **2025** | **2025** | 2024 | 2024 |
|  | **Maximum<br>Guarantee<br>Authorized** | **Guaranteed<br>Loans<br>Outstanding** | Maximum<br>Guarantee<br>Authorized | Guaranteed<br>Loans<br>Outstanding |
| &nbsp;&nbsp; **Ministries** |  |  |  |  |
| &nbsp;&nbsp; Agriculture, Food and Rural Affairs | **206** | **86** | 146 | 75 |
| &nbsp;&nbsp; Finance | **1001** | **286** | 1001 | 305 |
| &nbsp;&nbsp; Municipal Affairs and Housing | **15** | **15** | – | – |
|  | **1222** | **387** | 1147 | 380 |
| &nbsp;&nbsp; **Consolidated entities** |  |  |  |  |
| &nbsp;&nbsp; Ontario Power Generation Inc. | **–** | **–** | 32 |  |
| &nbsp;&nbsp; Hydro One Limited | **240** | **–** | 325 | – |
|  | **240** | **–** | 357 | – |
| &nbsp;&nbsp; **Broader Public Sector Organizations** | **340** | **186** | 295 | 153 |
| &nbsp;&nbsp; **Total** | **1802** | **573** | 1799 | 533 |

---

---

| | |
|:---|:---|
| **84** | **Consolidated Financial Statements, 2024–2025** |

---

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##### [**Table of Contents**](#toc)
**Ontario Nuclear Funds Agreement** 

Under the Ontario Nuclear Funds Agreement (ONFA), the Province is liable to make payments, should the cost estimate for nuclear used fuel waste management rise above specified thresholds for a fixed volume of used fuel. The likelihood and amount by which the cost estimate could rise above these thresholds cannot be determined at this time. The cost estimate will be updated periodically to reflect new developments in the management of nuclear used fuel waste.

In addition, under ONFA, the government guarantees a return of 3.25 per cent over the Ontario Consumer Price Index for the portion of the nuclear used fuel waste management segregated fund related to the fixed volume of used fuel. If the earnings on assets in that fund related to the fixed volume exceed the guaranteed rate, the Province is entitled to the excess.

An agreement between the Canadian Nuclear Safety Commission (CNSC), the Province and OPG gives the CNSC access (in prescribed circumstances) to the segregated funds established under ONFA.

**Claims Against the Crown** 

There are claims outstanding against the Crown, of which 69 (2023–24, 56) are for amounts over $50 million. These claims arise from legal action or potential legal action, either in progress or threatened, in respect of Aboriginal treaty rights and land claims, breach of contract, injury to persons, negligence and like items. The cost to the Province, if any, cannot be determined because the financial outcome of these actions is uncertain. For a detailed listing of claims against the ministries, refer to the Ministry Statements and Schedules, "Claims Against the Crown."

**Contaminated Sites** 

The Province has identified a total of 155 sites (2023–24, 159 sites) where the Province may be responsible for any resulting clean-up costs. However, a liability has not been recorded for these sites at the financial reporting date because it is unclear if the government is responsible for those sites, or the amounts of the liabilities cannot be estimated. Of these sites, there are 110 sites (2023–24, 108 sites) whereby it is indeterminable whether the government is responsible, resulting in a potential liability of $389 million (2023–24, $428 million).

**Tax Assessments** 

The Province signed a Memorandum of Agreement with the Government of Canada to transition to a single administration for corporate tax for tax years ending after December 31, 2008. As part of the agreement, the Canada Revenue Agency (CRA) is also responsible for the administration of audit activities, taxpayer objections and any appeals that may arise from objections for 2008 and prior tax years. The cost to the Province cannot be reasonably estimated as the outcome of these objections and appeals are uncertain.

**Land and Land-Related Claims** 

A land or land-related claim is a formal allegation made by an Indigenous community that it is legally entitled to land, financial payment or other compensation. Currently, 58 land claims for 2024–25 (2023–24, 57 land claims) are under negotiation, accepted for negotiation or under review. A liability is recorded if the settlement of the claim is assessed as likely and the amount of the settlement can be reasonably estimated.

---

| | |
|:---|:---|
| **Consolidated Financial Statements, 2024–2025** | **85** |

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##### [**Table of Contents**](#toc)
**Credit Union Deposit Insurance** 

In the event that the credit unions have insufficient funds, the government can provide financing. In accordance with the *Credit Unions and Caisses Populaires Act, 2020*, the Financial Services Regulatory Authority of Ontario (FSRA) administers the Deposit Insurance Reserve Fund (DIRF) which provides deposit protection coverage to eligible credit union depositors and also provides financial support to credit unions. Credit unions have advertised that depositors are covered up to $250,000 of eligible deposits, plus all insurable deposits in registered accounts with each member credit union. FSRA has a $2.0 billion revolving credit facility in place with the Ontario Financing Authority for the purposes of mitigating potential liquidity risk in the Ontario credit union sector, including situations where one or more credit unions may require financial support beyond the support available from the DIRF. The credit facility was put in place for a one-year term on December 19, 2023 with options to extend it for up to an additional two years (renewed on December 18<sup>th</sup>, 2024). The first renewal was exercised on December 18, 2024. Interest would accrue at the three-month Ontario Treasury Bill Rate plus 0.788 per cent, compounded quarterly. No amounts have been drawn under this facility as at March 31, 2025 (March 31, 2024, $NIL).

**Other Contingencies** 

Other contingencies for this year are $72 million (2023–24, $68 million), including items such as letters of credit and lines of credit for consolidated entities.

**12. a. Contractual Obligations** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Contractual Obligations** <br> **as at March 31**<br>**($ Millions)** | | | **Minimum Payments to be made in:** | **Minimum Payments to be made in:** | **Minimum Payments to be made in:** | **Minimum Payments to be made in:** | **Minimum Payments to be made in:** | **Minimum Payments to be made in:** |
| **Contractual Obligations** <br> **as at March 31**<br>**($ Millions)** | **2025** | 2024<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restated | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2027 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2028 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2029 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2030 | 2031 and <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;thereafter  |
| &nbsp;&nbsp; Transfer Payments | **38240** | 34735 | 12610 | 3763 | 2248 | 1703 | 1361 | 16555 |
| &nbsp;&nbsp; Public Private Partnership Contracts<sup>1</sup> | **41932** | 40433 | 4620 | 3561 | 3170 | 1773 | 3014 | 25794 |
| &nbsp;&nbsp; Ontario Power Generation | **3667** | 1575 | 1609 | 614 | 334 | 258 | 223 | 629 |
| &nbsp;&nbsp; Leases<sup>2</sup> | **4483** | 3864 | 681 | 592 | 480 | 385 | 306 | 2039 |
| &nbsp;&nbsp; Construction Contracts | **9187** | 7178 | 4352 | 2283 | 988 | 721 | 123 | 720 |
| &nbsp;&nbsp; Other | **30070** | 24726 | 21168 | 1745 | 1363 | 1045 | 2265 | 2484 |
| &nbsp;&nbsp; **Total Contractual Obligations<sup>2</sup>** | **127579** | 112511 | 45040 | 12558 | 8583 | 5885 | 7292 | 48221 |

---

<sup>1</sup> The majority of 2025 P3 contracts relate to Metrolinx (65 per cent, 2023–24, 68 per cent) and Hospitals (20 per cent, 2023–24, 14 per cent) projects. In some P3 contracts, the annual service payments which represent operating and maintenance costs are indexed to inflationary increase. 

<sup>2</sup> 2024 figure is restated to exclude capital leases that were included for 2023–24.

The contractual obligations represent the unperformed capital and operating portion of contracts and will become liabilities in the future when the terms of the contracts are met.

---

| | |
|:---|:---|
| **86** | **Consolidated Financial Statements, 2024–2025** |

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##### [**Table of Contents**](#toc)
**b. Contractual Rights** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Contractual Rights** <br> **as at March 31**<br>**($ Millions)** | **2025** | 2024 <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restated  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2027 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2028 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2029 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2030 | 2031 and<br> thereafter |
| &nbsp;&nbsp; Transfer Payments<sup>1</sup> | **6336** | 5583 | 2694 | 1624 | 1103 | 252 | 330 | 333 |
| &nbsp;&nbsp; Royalties/Licences | **27** | 28 | 27 |  |  |  |  |  |
| &nbsp;&nbsp; Leases | **1028** | 1054 | 70 | 66 | 68 | 60 | 51 | 713 |
| &nbsp;&nbsp; Construction Contracts | **1463** | 1618 | 469 | 142 | 126 | 81 | 210 | 435 |
| &nbsp;&nbsp; Other | **126** | 164 | 111 | 8 | 1 | 1 | – | 5 |
| &nbsp;&nbsp; **Total Contractual Rights<sup>1</sup>** | **8980** | 8447 | 3371 | 1840 | 1298 | 394 | 591 | 1486 |

---

<sup>1</sup> 2024 figure is restated to include transfer payment contracts omitted for 2023–24.

Contractual rights are certain in nature, and they will become assets in the future when the terms of the contracts are met.

In May 2010, the Province reached a deal with Teranet to provide a 50-year extension to its original agreement in exchange for $1.0 billion cash up front (see Note 5). As part of the new agreement, Teranet has agreed to pay the Province annual royalty payments beginning in 2017 and ending in 2067. The royalty payments are contingent upon Teranet's financial performance. The Province recognized $26.9 million in revenue relating to royalty payments pertaining to the contractual rights from Teranet in 2024–25 (2023–24, $26.8 million). Royalty payments for 2026 and thereafter could not be estimated as they are based on percentages of various eligible Teranet revenues such as value-added product revenue, registration revenue and ancillary revenue.

The Province has ongoing legally binding contracts or agreements in place that enable it to receive royalty payments or licence fees in exchange for allowing industry operators to extract natural resources in Ontario (i.e., water power, Crown timber stumpage, petroleum resources offshore and aggregate materials like sand and gravel) pursuant to provincial legislation. Royalty payments for 2025 and thereafter could not be estimated as they are based on unknown volumes of harvested resources.

**13.** **Trusts Under Administration** 

The following trusts under administration are not included in the Province's Consolidated Financial Statements.

The Workplace Safety and Insurance Board (WSIB) is responsible for administering the *Workplace Safety and Insurance Act, 1997*, which establishes a no-fault insurance scheme that provides benefits to workers who experience workplace injuries or illnesses.

The Office of the Public Guardian and Trustee for Ontario (OPGT) delivers a unique and diverse range of services that safeguard the legal, personal and financial interests of certain private individuals and estates. It also plays an important role in helping to protect charitable property in the Province.

---

| | |
|:---|:---|
| **Consolidated Financial Statements, 2024–2025** | **87** |

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##### [**Table of Contents**](#toc)
Summary financial information from the most recent consolidated financial statements of trust funds under administration is provided below. The financial statements of the WSIB and the OPGT have been prepared in accordance with IFRS.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Trusts Under Administration**<br>**($ Millions)** | **Workplace Safety and<br>Insurance Board (WSIB)**<br> As at December 31 | **Workplace Safety and<br>Insurance Board (WSIB)**<br> As at December 31 | **The Public Guardian and Trustee** <br> **for the Province of Ontario** <br> As at March 31  | **The Public Guardian and Trustee** <br> **for the Province of Ontario** <br> As at March 31  |
|  | **2024** | 2023 | **2025** | 2024 |
|  Assets | **41774** | 38164 | **3335** | 3068 |
|  Liabilities | **34933** | 33050 | **130** | 129 |
|  **Net Assets** | **6841** | 5114 | **3205** | 2939 |
|  Fund Balance Attributable to WSIB Stakeholders | **6620** | 5114 | **–** |  |
|  Fund Balance | **–** | – | **3205** | 2939 |

---

Unfunded liabilities of trusts under administration are not included in the Province's Consolidated Financial Statements as it is intended that they will be discharged by external parties.

**14. Related Party Disclosures and Inter-Entity Transactions** 

The Province of Ontario enters into transactions with parties within the reporting entity, including provincial Crown corporations, agencies, boards, commissions and government not-for-profit organizations, in the normal course of operations. These inter-entity transactions are those conducted between related parties with common control or ownership, are recorded at the exchange value, and have been eliminated for purposes of consolidated reporting.

Related party transactions can also include transactions with entities outside the reporting entity where a member of the Province's key management personnel, or their spouse or dependant, is key management personnel of the counterparty to a transaction with the Province. As key management personnel, they govern or share the power to determine the ongoing financial and operating decisions of that counterparty. The Province's key management personnel are those individuals having authority and responsibility for planning, directing and controlling the activities of the government, and have been identified as ministers, associate ministers and deputy ministers for the purpose of this reporting.

The Province has a wide variety of controls in place to ensure that key management personnel do not enter into transactions with related parties. For 2024–25 there were no transactions between related parties which occurred at a value materially different from that which would have been arrived at if the parties were unrelated.

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| | |
|:---|:---|
| **88** | **Consolidated Financial Statements, 2024–2025** |

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##### [**Table of Contents**](#toc)
**15. Subsequent Events** 

**Robinson Superior Treaty** 

After the Crown determined past compensation on January 27, 2025 to be $3.6 billion and Ontario agreed to pay half ($1.8 billion), the Robinson Superior Treaty (RST) Plaintiffs applied for a review of the Crown's exercise of discretion before the Ontario Superior Court, as contemplated by the Supreme Court's decision in Restoule. This review hearing was held in June 2025 and the decision is under reserve.

On May 21, 2025, the Court made an Order on consent of all parties setting out the amounts to be paid to each beneficiary First Nation from the total $3.6 billion. Ontario paid the amounts owing as set out in the Court's May 21, 2025 Order. In addition, payment of Ontario's portion for the additional legal costs was made on May 31, 2025. There are six First Nations in the RST area who assert that they are not parties/beneficiaries to the RST and continue to hold Aboriginal title. These claims for Aboriginal title are the subject of ongoing negotiations among each of the Contingent Interest First Nations, respectively, and Canada and Ontario. As contemplated in the Court's May 21, 2025 Order, the Contingent Interest First Nations have not confirmed they are beneficiaries under the RST but may elect to do so in future. If they do so, they will receive their portion of the Order.

**16. Changes in the Fair Value of Ontario Nuclear Funds** 

The Ontario Nuclear Funds Agreement (ONFA) Funds were established by OPG and the Province to ensure that sufficient funds will be available to pay for the costs of nuclear station decommissioning and nuclear used fuel waste management.

Since April 1, 2007, the fair value of ONFA Funds has been reflected in the Province's Consolidated Financial Statements. Unrealized gains and losses of ONFA Funds are included in Investment in Government Business Enterprises and recorded as an Increase (or Decrease) in Fair Value of Ontario Nuclear Funds in the Consolidated Statement of Change in Net Debt and the Consolidated Statement of Remeasurement Gains and Losses. Realized gains and losses of ONFA Funds are included in Income from Investment in Government Business Enterprises. Inter-organizational balances related to ONFA Funds are eliminated.

ONFA Funds recorded unrealized gains in 2024–25 of $195 million (2023–24, $1,138 million) that resulted in an increase in Investment in Government Business Enterprises and a corresponding decrease in Net Debt and Remeasurement Gains or Losses.

---

| | |
|:---|:---|
| **Consolidated Financial Statements, 2024–2025** | **89** |

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##### [**Table of Contents**](#toc)
**17. Accounting Changes and Reclassifications** 

The tables below summarize the effects of accounting changes and reclassifications for the year ended March 31, 2025.

**A. Presentation of Interest and Investment Income** 

Effective April 1, 2024, interest and investment income is presented separately from the interest and other debt servicing charges expense. Previously, the interest on debt was presented net of interest and investment income. It has been renamed "Interest and other debt servicing charges" to more accurately reflect the expenses incurred to deliver an effective, cost-efficient borrowing program. The definition of interest and other debt servicing changes is included in Note 1(e). The presentation change does not affect the Province's annual deficit or accumulated deficit. Comparative actual results for 2023–24 and the 2024–25 Budget have been reclassified to reflect the revised presentation on the Consolidated Financial Statements.

**B. Corporations Tax Revenue** 

Effective April 1, 2024, the Province has implemented a change in its accounting policy regarding the calculation of accrued Corporations Tax revenue. The estimation methodology has been refined to more accurately reflect accrued Corporations Tax revenue. Comparative actual results for 2023–24 and the 2024–25 Budget have been restated to reflect the change on the Consolidated Financial Statements. The accounting policy disclosures related to this change are included in Note 1(e).

**C. Reclassifications** 

All presentations of results by sector for the prior year comparatives have been reclassified to be reflected on the same basis as those used to report the current year actual.

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| | |
|:---|:---|
| **90** | **Consolidated Financial Statements, 2024–2025** |

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##### [**Table of Contents**](#toc)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Province of Ontario**<br> **Consolidated Statement of Operations** | | | | | |
| **For the year ended March 31**<br> **($ Millions)** | **2023–24**<br> **Reported** | **(A)** | **(B)** | **(C)** | **2023–24** <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Restated**  |
| &nbsp;&nbsp; **Revenue** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Personal Income Tax | 50773 |  |  |  | 50773 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales Tax | 39864 |  |  |  | 39864 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporations Tax | 23140 |  | (46) |  | 23094 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employer Health Tax | 8581 |  |  |  | 8581 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Education Property Tax | 5810 |  |  |  | 5810 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ontario Health Premium | 5008 |  |  |  | 5008 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gasoline and Fuel Taxes | 2137 |  |  |  | 2137 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Taxes | 6547 | – | – | – | 6547 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Taxation** | **141860** |  | **(46)** |  | **141814** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfers from Government of Canada | 34336 |  |  |  | 34336 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fees, Donations and Other Revenues from Broader Public Sector Organizations | 13071 |  |  |  | 13071 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from Investment in Government Business Enterprises | 7427 |  |  |  | 7427 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest and Investment Income |  | 3085 |  |  | 3085 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 9242 | – | – | – | 9242 |
| &nbsp;&nbsp; **Total Revenue** | **205936** | **3085** | **(46)** |  | **208975** |
| &nbsp;&nbsp; **Expense** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Health | 85458 |  |  |  | 85458 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Education | 38810 |  |  |  | 38810 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Children's and Social Services | 19476 |  |  | (64) | 19412 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest and Other Debt Servicing Charges | 11376 | 3085 |  |  | 14461 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Postsecondary Education | 13235 |  |  |  | 13235 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Justice | 6037 |  |  |  | 6037 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Programs | 32191 | – | – | 64 | 32255 |
| &nbsp;&nbsp; **Total Expenses** | **206583** | **3085** | – | – | **209668** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reserve |  |  |  |  |  |
| &nbsp;&nbsp; **Annual Deficit** | **(647)** | – | **(46)** | – | **(693)** |

---

---

| | |
|:---|:---|
| **Consolidated Financial Statements, 2024–2025** | **91** |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Province of Ontario**<br> **Consolidated Statement of Operations** | | | | | |
| **For the year ended March 31**<br> **($ Millions)** | **2024–25**<br> **Budget** | **(A)** | **(B)** | **(C)** | **2024–25** <br> **Budget** <br> **Reclassified**  |
| &nbsp;&nbsp; **Revenue** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Personal Income Tax | 51936 |  |  |  | 51936 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales Tax | 38832 |  |  |  | 38832 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporations Tax | 24915 |  |  |  | 24915 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employer Health Tax | 8720 |  |  |  | 8720 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Education Property Tax | 5831 |  |  |  | 5831 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ontario Health Premium | 5014 |  |  |  | 5014 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gasoline and Fuel Taxes | 2576 |  |  |  | 2576 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Taxes | 6863 | – |  |  | 6863 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Taxation** | **144687** |  |  |  | **144687** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfers from Government of Canada | 36252 |  |  |  | 36252 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fees, Donations and Other Revenues from Broader Public Sector Organizations | 10241 |  |  |  | 10241 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from Investment in Government Business Enterprises | 6786 |  |  |  | 6786 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest and Investment Income |  | 2551 |  |  | 2551 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 7724 | – |  |  | 7724 |
| &nbsp;&nbsp; **Total Revenue** | **205690** | **2551** |  |  | **208241** |
| &nbsp;&nbsp; **Expense** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Health | 84961 |  |  |  | 84961 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Education | 39306 |  |  |  | 39306 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Children's and Social Services | 19926 |  |  |  | 19926 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest and Other Debt Servicing Charges | 13913 | 2551 |  |  | 16464 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Postsecondary Education | 12189 |  |  |  | 12189 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Justice | 5878 |  |  |  | 5878 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Programs | 38323 | – |  |  | 38323 |
| &nbsp;&nbsp; **Total Expenses** | **214496** | **2551** |  |  | **217047** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reserve | 1000 |  |  |  | 1000 |
| &nbsp;&nbsp; **Annual Deficit** | **(9806)** | – |  |  | **(9806)** |

---

---

| | |
|:---|:---|
| **92** | **Consolidated Financial Statements, 2024–2025** |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Province of Ontario**<br> **Consolidated Statement of Financial Position** | | | | | |
| **As at March 31**<br> **($ Millions)** | **2024**<br> **Reported** | **A** | **B** | **C** | **2024** <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Restated**  |
| &nbsp;&nbsp; **Liabilities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts Payable and Accrued Liabilities | 48942 |  |  |  | 48942 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt | 437633 |  |  |  | 437633 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Long-Term Financing | 18025 |  |  |  | 18025 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred Revenue and Capital Contributions | 17443 |  |  |  | 17443 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pension and Other Employee Future Benefits | 13783 |  |  |  | 13783 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative Liabilities | 6881 |  |  |  | 6881 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Liabilities | 9384 |  | – |  | 9384 |
| &nbsp;&nbsp; **Total Liabilities** | **552091** |  | **–** |  | **552091** |
| &nbsp;&nbsp; **Financial Assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and Cash Equivalents | 41459 |  |  |  | 41459 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Portfolio Investments | 25919 |  |  |  | 25919 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts Receivable | 26132 |  | (1792) |  | 24340 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans Receivable | 11852 |  |  |  | 11852 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Derivative Assets | 4531 |  |  |  | 4531 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Assets | 1062 |  |  |  | 1062 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment in Government Business Enterprises | 33167 |  | – |  | 33167 |
| &nbsp;&nbsp; **Total Financial Assets** | **144122** |  | **(1792)** |  | **142330** |
| &nbsp;&nbsp; **Net Debt** | **(407969)** |  | **(1792)** |  | **(409761)** |
| &nbsp;&nbsp; **Non-Financial Assets** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tangible Capital Assets | 161631 |  |  |  | 161631 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid Expenses and Other Non-Financial Assets | 2029 |  | – |  | 2029 |
| &nbsp;&nbsp; **Total Non-Financial Assets** | **163660** |  | – |  | **163660** |
| &nbsp;&nbsp; **Accumulated Deficit** | **(244309)** |  | **(1792)** |  | **(246101)** |
| &nbsp;&nbsp; **Accumulated Deficit is Comprised of** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated Operating Deficit | (246690) |  | (1792) |  | (248482) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated Remeasurement Gains | 2381 |  | – |  | 2381 |
|  | **(244309)** |  | **(1792)** |  | **(246101)** |

---

---

| | |
|:---|:---|
| **Consolidated Financial Statements, 2024–2025** | **93** |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Province of Ontario**<br> **Consolidated Statement of Change in Net Debt** | | | | | |
| **For the year ended March 31**<br> **($ Millions)** | **2023–24**<br> **Reported** | **A** | **B** | **C** | **2023–24** <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Restated**  |
| &nbsp;&nbsp; **Annual Deficit** | **(647)** |  | **(46)** |  | **(693)** |
| &nbsp;&nbsp; Acquisition of Tangible Capital Assets | (18713) |  |  |  | (18713) |
| &nbsp;&nbsp; Amortization of Tangible Capital Assets | 7969 |  |  |  | 7969 |
| &nbsp;&nbsp; Proceeds on Sale of Tangible Capital Assets | 301 |  |  |  | 301 |
| &nbsp;&nbsp; Gain on Sale of Tangible Capital Assets | (231) |  |  |  | (231) |
| &nbsp;&nbsp; Tangible Capital Assets cost change relating to Revaluation of Asset Retirement Obligations | (440) |  |  |  | (440) |
| &nbsp;&nbsp; Decrease in Prepaid Expenses and Other Non-Financial Assets | 1253 |  | – |  | 1253 |
|  | **(9861)** |  | **–** |  | **(9861)** |
| &nbsp;&nbsp; Contribution Deficit - Ontario Power Generation | (2) |  |  |  | (2) |
| &nbsp;&nbsp; Equity Impact - IFRS Adjustment for Ontario Power Generation's Pension, Other Employee Future Benefits Liabilities and <br>Other Costs | 271 |  | – |  | 271 |
| &nbsp;&nbsp; **Increase in Net Debt Excluding Net Remeasurement Gains/Loss** | **(10239)** |  | **(46)** |  | **(10285)** |
| &nbsp;&nbsp; Net Remeasurement Gains | 2076 |  | – |  | 2076 |
| &nbsp;&nbsp; **Increase in Net Debt** | **(8163)** |  | **(46)** |  | **(8209)** |
| &nbsp;&nbsp; **Net Debt at Beginning of Year** | **(399806)** |  | **(1746)** |  | **(401552)** |
| &nbsp;&nbsp; **Net Debt at End of Year** | **(407969)** |  | **(1792)** |  | **(409761)** |
| **Province of Ontario**<br> **Consolidated Statement of Change in Accumulated Operating Deficit** | **Province of Ontario**<br> **Consolidated Statement of Change in Accumulated Operating Deficit** | **Province of Ontario**<br> **Consolidated Statement of Change in Accumulated Operating Deficit** | **Province of Ontario**<br> **Consolidated Statement of Change in Accumulated Operating Deficit** | **Province of Ontario**<br> **Consolidated Statement of Change in Accumulated Operating Deficit** | **Province of Ontario**<br> **Consolidated Statement of Change in Accumulated Operating Deficit** |
| **For the year ended March 31**<br> **($ Millions)** | **2023–24**<br> **Reported** | **A** | **B** | **C** | **2023–24** <br> **Restated**  |
| &nbsp;&nbsp; **Accumulated Operating Deficit at Beginning of Year** | **(246312)** |  | **(1746)** |  | **(248058)** |
| &nbsp;&nbsp; Annual Deficit | (647) |  | (46) |  | (693) |
| &nbsp;&nbsp; Contribution Deficit - Ontario Power Generation | (2) |  |  |  | (2) |
| &nbsp;&nbsp; Equity Impact - IFRS Adjustment for Ontario Power Generation's Pension, Other Employee Future Benefits Liabilities and <br>Other Costs | 271 |  | – |  | 271 |
| &nbsp;&nbsp; **Accumulated Operating Deficit at End of Year** | **(246690)** |  | **(1792)** |  | **(248482)** |

---

---

| | |
|:---|:---|
| **94** | **Consolidated Financial Statements, 2024–2025** |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Province of Ontario**<br> **Consolidated Statement of Cash Flow** | | | | | |
| **For the year ended March 31**<br> **($ Millions)** | **2023–24**<br> **Reported** | **A** | **B** | **C** | **2023–24** <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Restated**  |
| &nbsp;&nbsp; **Operating Transactions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Annual Deficit** | **(647)** |  | **(46)** |  | **(693)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Non-Cash Items** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of Tangible Capital Assets | 7969 |  |  |  | 7969 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on Sale of Tangible Capital Assets | (231) |  |  |  | (231) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contributed Tangible Capital Assets | (45) |  |  |  | (45) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-Cash Tangible Capital Assets Funded by Assets Swap | (7) |  |  |  | (7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from Investment in Government Business Enterprises | (7427) |  |  |  | (7427) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment to Opening Accumulated Deficit – Corporations Tax Revenue and Receivables |  |  | (1746) |  | (1746) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In-Year Remeasurement Gains/(Losses) for Non-Government Business Enterprise Entities | 996 |  |  |  | 996 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred Gain Adjustment from Government Business Enterprises | 29 |  |  |  | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Cash Items** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in Accounts Receivable | (13855) |  | 1792 |  | (12063) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in Loans Receivable | 47 |  |  |  | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in Accounts Payable and Accrued Liabilities | 2818 |  |  |  | 2818 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in Liability for Pensions and Other Employee Future Benefits | (347) |  |  |  | (347) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in Other Liabilities | 46 |  |  |  | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in Deferred Revenue and Capital Contributions | 211 |  |  |  | 211 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remittances from Investment in Government Business Enterprises | 5540 |  |  |  | 5540 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in Prepaid Expenses and Other Non-Financial Assets | 1253 |  |  |  | 1253 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in Other Assets | 197 |  | – |  | 197 |
| &nbsp;&nbsp; **Cash Applied to Operating Transactions** | **(3453)** |  | – |  | **(3453)** |
| &nbsp;&nbsp; **Capital Transactions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of Tangible Capital Assets | (17769) |  |  |  | (17769) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from Sale of Tangible Capital Assets | 301 |  | – |  | 301 |
| &nbsp;&nbsp; **Cash Applied to Capital Transactions** | **(17468)** |  | – |  | **(17468)** |
| &nbsp;&nbsp; **Investing Transactions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Portfolio Investments Purchased | (157269) |  |  |  | (157269) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Portfolio Investments Retired | 165363 |  | – |  | 165363 |
| &nbsp;&nbsp; **Cash Provided by Investing Transactions** | **8094** |  | – |  | **8094** |
| &nbsp;&nbsp; **Financing Transactions** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-Term Debt Issued | 43869 |  |  |  | 43869 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-Term Debt Retired | (26790) |  |  |  | (26790) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment for Unamortized Discounts, Premiums and Commissions for Long-Term Debt | (1168) |  |  |  | (1168) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in Short-Term Debt | (77) |  |  |  | (77) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in Other Long-Term Financing | (665) |  |  |  | (665) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in Derivative Liabilities | (804) |  |  |  | (804) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in Derivative Assets | 40 |  | – |  | 40 |
| &nbsp;&nbsp; **Cash Provided by Financing Transactions** | **14405** |  | – |  | **14405** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Increase in Cash and Cash Equivalents | 1578 |  |  |  | 1578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and Cash Equivalents at Beginning of Year | 39881 |  | – |  | 39881 |
| &nbsp;&nbsp; **Cash and Cash Equivalents at End of Year** | **41459** |  | – |  | **41459** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash | 17227 |  | – |  | 17227 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash Equivalents | 24232 |  | – |  | 24232 |

---

---

| | |
|:---|:---|
| **Consolidated Financial Statements, 2024–2025** | **95** |

---

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##### [**Table of Contents**](#toc)
**D. Comparative Figures** 

Certain comparative figures have been reclassified as necessary to conform to the 2024–25 presentation.

---

| | |
|:---|:---|
| **96** | **Consolidated Financial Statements, 2024–2025** |

---

------

##### [**Table of Contents**](#toc)
**SCHEDULES TO THE CONSOLIDATED FINANCIAL STATEMENTS** 

---

| | | |
|:---|:---|:---|
|  **Schedule 1** | [Revenue by Source](#tx941512_1) | 98 |
|  **Schedule 2** | [Revenue by Sector](#tx941512_2) | 100 |
|  **Schedule 3** | [Expense by Sector](#tx941512_3) | 102 |
|  **Schedule 4** | [Expense by Ministry](#tx941512_4) | 104 |
|  **Schedule 5** | [Accounts Payable and Accrued Liabilities](#tx941512_5) | 105 |
|  **Schedule 6** | [Accounts Receivable](#tx941512_6) | 105 |
|  **Schedule 7** | [Loans Receivable](#tx941512_7) | 106 |
|  **Schedule 8** | [Government Organizations](#tx941512_8) | 108 |
|  **Schedule 9** | [Government Business Enterprises](#tx941512_9) | 113 |
|  **Schedule 10** | [Fees, Donations and Other Revenue from Broader Public Sector Organizations](#tx941512_10) | 116 |
|  **Schedule 11** | [Prepaid Expenses and Other Non-Financial Assets](#tx941512_11) | 116 |

---

---

| | |
|:---|:---|
| **Consolidated Financial Statements, 2024–2025** | **97** |

---

------

##### [**Table of Contents**](#toc)

---

| | | | |
|:---|:---|:---|:---|
| **Province of Ontario**<br> **Schedule 1: Revenue by Source** | **Province of Ontario**<br> **Schedule 1: Revenue by Source** | **Province of Ontario**<br> **Schedule 1: Revenue by Source** | **Province of Ontario**<br> **Schedule 1: Revenue by Source** |
| **($ Millions)**  | <br> 2024–25<br> Budget | <br> **2024–25<br>Actual** | <br> 2023–24<br>Actual<br> Restated<br> (*Note 17*) |
| &nbsp;&nbsp; <br> **Taxation** |  |  |  |
| &nbsp;&nbsp; Personal Income Tax | 51936 | **55701** | 50773 |
| &nbsp;&nbsp; Sales Tax | 38832 | **39363** | 39864 |
| &nbsp;&nbsp; Corporations Tax | 24915 | **27757** | 23094 |
| &nbsp;&nbsp; Employer Health Tax | 8720 | **9061** | 8581 |
| &nbsp;&nbsp; Education Property Tax | 5831 | **5887** | 5810 |
| &nbsp;&nbsp; Ontario Health Premium | 5014 | **5221** | 5008 |
| &nbsp;&nbsp; Land Transfer Tax | 3881 | **3736** | 3538 |
| &nbsp;&nbsp; Gasoline Tax | 1953 | **1719** | 1620 |
| &nbsp;&nbsp; Tobacco Tax | 771 | **693** | 813 |
| &nbsp;&nbsp; Beer, Wine and Spirits Tax | 576 | **530** | 593 |
| &nbsp;&nbsp; Fuel Tax | 623 | **514** | 517 |
| &nbsp;&nbsp; Ontario Portion of the Federal Cannabis Excise Duty | 379 | **390** | 346 |
| &nbsp;&nbsp; Electricity Payments-In-Lieu of Taxes<sup>1</sup> | 536 | **54** | 529 |
| &nbsp;&nbsp; Other Taxes | 720 | **891** | 728 |
|  | 144687  | **151517**  | 141814  |
| &nbsp;&nbsp; <br> **Transfers from Government of Canada** |  |  |  |
| &nbsp;&nbsp; Canada Health Transfer | 20256 | **20363** | 19286 |
| &nbsp;&nbsp; Canada Social Transfer | 6576 | **6611** | 6407 |
| &nbsp;&nbsp; Canada-wide Early Learning and Child Care | 3292 | **2800** | 2031 |
| &nbsp;&nbsp; Shared Health Priorities | 836 | **1204** | 935 |
| &nbsp;&nbsp; Infrastructure Programs | 1185 | **1124** | 609 |
| &nbsp;&nbsp; Direct Transfers to Broader Public Sector Organizations | 482 | **691** | 625 |
| &nbsp;&nbsp; Labour Market Development Agreement | 644 | **641** | 792 |
| &nbsp;&nbsp; Equalization Payments | 576 | **576** | 421 |
| &nbsp;&nbsp; Aging with Dignity | 461 | **464** | 462 |
| &nbsp;&nbsp; Indian Welfare Services Agreement | 342 | **338** | 332 |
| &nbsp;&nbsp; Workforce Development Agreement | 260 | **280** | 357 |
| &nbsp;&nbsp; Early Learning and Child Care | 211 | **210** | 208 |
| &nbsp;&nbsp; National Strategy for Drugs for Rare Diseases |  | **178** |  |
| &nbsp;&nbsp; Social Housing | 174 | **173** | 218 |
| &nbsp;&nbsp; Bilingualism Development | 99 | **151** | 187 |
| &nbsp;&nbsp; Legal Aid – Criminal | 50 | **77** | 71 |
| &nbsp;&nbsp; Sustainable Canadian Agricultural Partnership | 59 | **69** | 44 |
| &nbsp;&nbsp; Youth Criminal Justice | 67 | **68** | 67 |
| &nbsp;&nbsp; Other | 682 | **615** | 1284 |
|  | 36252 | **36633** | 34336 |

---

<sup> 1</sup> 2024–25 figure is net of a $343 million adjustment, reflecting the cumulative impact of the Ontario Electricity Financial Corporation's change in reporting Electricity Payments-In-Lieu of Taxes revenue for past years prior to 2024–25, moving from the previous instalment-based method to a tax assessment-based approach. 

---

| | |
|:---|:---|
| **98** | **Consolidated Financial Statements, 2024–2025** |

---

------

##### [**Table of Contents**](#toc)

---

| | | | |
|:---|:---|:---|:---|
| **Province of Ontario**<br> **Schedule 1: Revenue by Source (cont'd)** | **Province of Ontario**<br> **Schedule 1: Revenue by Source (cont'd)** | **Province of Ontario**<br> **Schedule 1: Revenue by Source (cont'd)** | **Province of Ontario**<br> **Schedule 1: Revenue by Source (cont'd)** |
| **($ Millions)** | 2024–25<br> Budget | **2024–25<br>Actual** | 2023–24<br> Actual<br> Restated<br> (*Note 17*) |
|  <br> **Fees, Donations and Other Revenues from Broader Public Sector Organizations (*Schedule 10*)** | 10241 | **14710** | 13071 |
|  <br> **Income from Investment in Government Business Enterprises *(Schedule 9)*** | 6786 | **7465** | 7427 |
| &nbsp;&nbsp; <br> **Interest and Investment Income<sup>2</sup>** | 2551 | **2786** | 3085 |
| &nbsp;&nbsp; **Other<sup>1</sup>** |  |  |  |
| &nbsp;&nbsp; Sales and Rentals | 1546 | **1630** | 1566 |
| &nbsp;&nbsp; Other Fees and Licences | 1390 | **1601** | 1370 |
| &nbsp;&nbsp; Vehicle and Driver Registration Fees | 1181 | **1232** | 1222 |
| &nbsp;&nbsp; Local Services Realignment | 138 | **436** | 138 |
| &nbsp;&nbsp; Royalties | 295 | **297** | 319 |
| &nbsp;&nbsp; Independent Electricity System Operator Revenue | 267 | **261** | 248 |
| &nbsp;&nbsp; Power Supply Contract Recoveries | 44 | **40** | 41 |
| &nbsp;&nbsp; Miscellaneous | 2863 | **7553** | 4338 |
|  | 7724 | **13050** | 9242 |
| &nbsp;&nbsp; **Total Revenue** | 208241 | **226161** | 208975 |

---

<sup> 1</sup> Includes non-recurring revenue of $3.4 billion for tobacco settlement (see Note 10). 

<sup> 2</sup> Includes $484 million of investment income (2023–24, $229 million) and $410 million interest income (2023–24, $650 million) from broader public sector organizations. 

---

| | |
|:---|:---|
| **Consolidated Financial Statements, 2024–2025** | **99** |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Province of Ontario**<br> **Schedule 2: Revenue by Sector<sup>1</sup>** | **Province of Ontario**<br> **Schedule 2: Revenue by Sector<sup>1</sup>** | **Province of Ontario**<br> **Schedule 2: Revenue by Sector<sup>1</sup>** | **Province of Ontario**<br> **Schedule 2: Revenue by Sector<sup>1</sup>** | **Province of Ontario**<br> **Schedule 2: Revenue by Sector<sup>1</sup>** | **Province of Ontario**<br> **Schedule 2: Revenue by Sector<sup>1</sup>** | **Province of Ontario**<br> **Schedule 2: Revenue by Sector<sup>1</sup>** | **Province of Ontario**<br> **Schedule 2: Revenue by Sector<sup>1</sup>** | **Province of Ontario**<br> **Schedule 2: Revenue by Sector<sup>1</sup>** |
| **Sectors** | **Health<sup>2</sup>** | **Health<sup>2</sup>** | **Education<sup>3</sup>** | **Education<sup>3</sup>** | **Children's and<br>Social Services<sup>4</sup>** | **Children's and<br>Social Services<sup>4</sup>** | **Postsecondary<br>Education<sup>5</sup>** | **Postsecondary<br>Education<sup>5</sup>** |
| **For the year ended March 31**<br> **($ Millions)** | **2025** | 2024<br> Restated<br> (*Note 17*) | **2025** | 2024<br> Restated<br> (*Note 17*) | **2025** | 2024<br> Restated<br> (*Note 17*)** | **2025** | 2024<br> Restated<br> (*Note 17*) |
| &nbsp;&nbsp; **Revenue** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp; Taxation *(Schedule 1)* | **–** |  | **–** |  | **–** |  | **–** |  |
| &nbsp;&nbsp; Transfers from Government of Canada *(Schedule 1)* | **2531** | 1975 | **3157** | 2399 | **529** | 497 | **168** | 194 |
| &nbsp;&nbsp; Fees, Donations and Other Revenues from Broader Public Sector Organizations *(Schedule 10)* | **6812** | 4960 | **1917** | 1708 | **102** | 97 | **6663** | 6962 |
| &nbsp;&nbsp; Income from Investment in Government Business Enterprises *(Schedule 9)* | **–** |  | **–** |  | **–** |  | **–** |  |
| &nbsp;&nbsp; Interest and Investment Income *(Schedule 1)* | **519** | 451 | **156** | 143 | **5** | 7 | **238** | 285 |
| &nbsp;&nbsp; Other *(Schedule 1)* | **1362** | 458 | **96** | 209 | **271** | 282 | **270** | 173 |
| &nbsp;&nbsp; **Subtotal** | **11224** | 7844 | **5326** | 4459 | **907** | 883 | **7339** | 7614 |
| &nbsp;&nbsp; **Adjustments<sup>1</sup>** | **(308)** | (270) | **(133)** | (139) | **(27)** | (43) | **(340)** | (245) |
| &nbsp;&nbsp; **Total** | **10916** | 7574 | **5193** | 4320 | **880** | 840 | **6999** | 7369 |

---

 <sup>1</sup> Beginning in 2024–25, amounts for each sector are presented before eliminating inter-sector balances. Adjustments represent the elimination of these balances to derive the post-consolidated totals. Comparative figures for 2023–24 have been restated to conform to the adopted presentation. 

 <sup>2</sup> The Health segment includes activities related to Ontario's health care system. It includes providing medical, hospital and preventative care, and other health-related services, such as laboratories and diagnostic facilities. It also includes activities related to monitoring compliance and supporting the operation, development, and sustainability of the Province's long-term care system. This includes the Ministry of Health and Ministry of Long-Term Care. 

 <sup>3</sup> The Education segment includes activities related to overseeing Ontario's publicly funded education systems (English, French and Catholic), from early childhood education through Grade 12, as well as the child care system, through legislation, policy, and funding models. This includes the Ministry of Education. 

<sup>4</sup> The Children's and Social Services segment includes activities related to funding, designing and delivering programs and services to protect and support people in Ontario during times of need. This includes the Ministry of Children, Community and Social Services.

<sup>5</sup> The Postsecondary Education segment includes activities related to overseeing Ontario's postsecondary education system and supporting research and innovation. This includes the Ministry of Colleges and Universities.

---

| | |
|:---|:---|
| **100** | **Consolidated Financial Statements, 2024–2025** |

---

------

##### [**Table of Contents**](#toc)

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Province of Ontario**<br> **Schedule 2: Revenue by Sector<sup>1</sup> (cont'd)** | **Province of Ontario**<br> **Schedule 2: Revenue by Sector<sup>1</sup> (cont'd)** | **Province of Ontario**<br> **Schedule 2: Revenue by Sector<sup>1</sup> (cont'd)** | **Province of Ontario**<br> **Schedule 2: Revenue by Sector<sup>1</sup> (cont'd)** | **Province of Ontario**<br> **Schedule 2: Revenue by Sector<sup>1</sup> (cont'd)** | **Province of Ontario**<br> **Schedule 2: Revenue by Sector<sup>1</sup> (cont'd)** | **Province of Ontario**<br> **Schedule 2: Revenue by Sector<sup>1</sup> (cont'd)** | **Province of Ontario**<br> **Schedule 2: Revenue by Sector<sup>1</sup> (cont'd)** | **Province of Ontario**<br> **Schedule 2: Revenue by Sector<sup>1</sup> (cont'd)** |
| **Sectors** | **Justice<sup>6</sup>** | **Justice<sup>6</sup>** | **Other<sup>7</sup>** | **Other<sup>7</sup>** | **Adjustments<sup>1</sup>** | **Adjustments<sup>1</sup>** | **Total** | **Total** |
| **For the year ended March 31**<br> **($ Millions)** | **2025** | 2024<br> Restated<br> (*Note 17*) | **2025** | 2024<br> Restated<br> (*Note 17*) | **2025** | **2024** | **2025** | 2024<br> Restated<br> (*Note 17*) |
| &nbsp;&nbsp; **Revenue** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp; Taxation *(Schedule 1)* |  |  | **151517** | 141814 |  |  | **151517** | 141814 |
| &nbsp;&nbsp; Transfers from Government of Canada *(Schedule 1)* | **247** | 231 | **30001** | 29040 |  |  | **36633** | 34336 |
| &nbsp;&nbsp; Fees, Donations and Other Revenues from Broader Public Sector Organizations <br>*(Schedule 10)* |  |  |  |  | **(784)** | **(656)** | **14710** | 13071 |
| &nbsp;&nbsp; Income from Investment in Government Business Enterprises *(Schedule 9)* | **219** | 176 | **7246** | 7251 |  |  | **7465** | 7427 |
| &nbsp;&nbsp; Interest and Investment Income | **17** | 10 | **1851** | 2189 |  |  | **2786** | 3085 |
| &nbsp;&nbsp; Other *(Schedule 1)* | **4742** | 1320 | **7155** | 7573 | **(846)** | **(773)** | **13050** | 9242 |
| &nbsp;&nbsp; **Subtotal** | **5225** | 1737 | **197770** | 187867 |  |  |  |  |
| &nbsp;&nbsp; **Adjustments<sup>1</sup>** | – | – | **(822)** | (732) | **(1630)** | **(1429)** |  |  |
| &nbsp;&nbsp; **Total** | **5225** | 1737 | **196948** | 187135 |  |  | **226161** | 208975 |

---

<sup>6</sup> The Justice segment includes activities related to administrating and delivering justice services to all communities in Ontario. It includes delivering of criminal, civil, and family court services, and providing legal services to the Province's ministries, agencies, boards, and commissions. It also includes setting Ontario-wide police and fire standards, providing oversight, supporting crime prevention initiatives at a local and provincial level, as well as operating an adult corrections system. This includes the Ministry of the Attorney General and Ministry of the Solicitor General. 

<sup>7</sup> The Other segment includes the activities of the Ministries of Agriculture, Food and Rural Affairs; Citizenship and Multiculturalism; Economic Development Job Creation and Trade; Energy; Environment, Conservation and Parks; Finance; Francophone Affairs; Indigenous Affairs; Infrastructure; Labour, Immigration, Training and Skills Development; Mines; Municipal Affairs and Housing; Natural Resources and Forestry; Northern Development; Public and Business Service Delivery; Seniors and Accessibility; Tourism, Culture and Sport; Transportation; Treasury Board Secretariat; the Board of Internal Economy; Executive Offices, and activities related to management of the Province's investments, which cannot be allocated to any of the specifically described sector classifications. 

---

| | |
|:---|:---|
| **Consolidated Financial Statements, 2024–2025** | **101** |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Province of Ontario**<br> **Schedule 3: Expense by Sector <sup>1</sup>**  | **Province of Ontario**<br> **Schedule 3: Expense by Sector <sup>1</sup>**  | **Province of Ontario**<br> **Schedule 3: Expense by Sector <sup>1</sup>**  | **Province of Ontario**<br> **Schedule 3: Expense by Sector <sup>1</sup>**  | **Province of Ontario**<br> **Schedule 3: Expense by Sector <sup>1</sup>**  | **Province of Ontario**<br> **Schedule 3: Expense by Sector <sup>1</sup>**  | **Province of Ontario**<br> **Schedule 3: Expense by Sector <sup>1</sup>**  | **Province of Ontario**<br> **Schedule 3: Expense by Sector <sup>1</sup>**  | **Province of Ontario**<br> **Schedule 3: Expense by Sector <sup>1</sup>**  | **Province of Ontario**<br> **Schedule 3: Expense by Sector <sup>1</sup>**  | **Province of Ontario**<br> **Schedule 3: Expense by Sector <sup>1</sup>**  |
| **Sectors** | **Health<sup>2</sup>** | **Health<sup>2</sup>** | **Education<sup>3</sup>** | **Education<sup>3</sup>** | **Children's and<br>Social Services<sup>4</sup>** | **Children's and<br>Social Services<sup>4</sup>** | **Postsecondary<br>Education<sup>5</sup>** | **Postsecondary<br>Education<sup>5</sup>** | **Justice<sup>6</sup>** | **Justice<sup>6</sup>** |
| **For the year**<br> **ended March 31**<br> **($ Millions)** | **2025** | 2024<br> Restated<br> (*Note 17*) | **2025** | 2024<br> Restated<br> (*Note 17*) | **2025** | 2024<br> Restated<br> (*Note 17*) | 2025 | 2024<br> Restated<br> (*Note 17*) | 2025 | 2024<br> Restated<br> (*Note 17*) |
| &nbsp;&nbsp;&nbsp; **Expense** |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp; Transfer Payments | **40759** | 36455 | **5154** | 4472 | **18424** | 17203 | **6289** | 5559 | **881** | 657 |
| &nbsp;&nbsp; Salaries and Wages | **24240** | 22830 | **22396** | 22267 | **1250** | 1219 | **3556** | 3245 | **3649** | 3456 |
| &nbsp;&nbsp; Services | **8168** | 7886 | **2278** | 2136 | **804** | 751 | **2215** | 2383 | **1313** | 1241 |
| &nbsp;&nbsp; Interest and Other Debt Servicing Charges |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp; Supplies and Equipment | **8889** | 9278 | **2281** | 2258 | **59** | 63 | **419** | 413 | **297** | 261 |
| &nbsp;&nbsp; Employee Benefits | **4454** | 4032 | **4020** | 3381 | **272** | 263 | **476** | 423 | **530** | 487 |
| &nbsp;&nbsp; Amortization of Tangible Capital Assets | **2319** | 2206 | **1926** | 1870 | **34** | 39 | **441** | 416 | **52** | 34 |
| &nbsp;&nbsp; Pensions and Other Employee Future Benefits *(Note 6)* | **2275** | 2153 | **2004** | 1900 | **35** | 37 | **331** | 325 | **100** | 84 |
| &nbsp;&nbsp; Transportation and Communication | **271** | 246 | **5** | 5 | **44** | 44 | **68** | 72 | **159** | 147 |
| &nbsp;&nbsp; Power Supply Contract Costs |  |  |  |  |  |  |  |  | **–** |  |
| &nbsp;&nbsp; Other | **480** | 517 | **64** | 586 | **110** | 76 | **453** | 415 | **841** | 259 |
| &nbsp;&nbsp;&nbsp; **Subtotal** | **91855** | 85603 | **40128** | 38875 | **21032** | 19695 | **14248** | 13251 | **7822** | 6626 |
| &nbsp;&nbsp;&nbsp; **Adjustments<sup>1</sup>** | **(224)** | (145) | **(69)** | (65) | **(296)** | (283) | **(102)** | (16) | **(598)** | (589) |
| &nbsp;&nbsp;&nbsp; **Total** | **91631** | 85458 | **40059** | 38810 | **20736** | 19412 | **14146** | 13235 | **7224** | 6037 |

---

<sup>1</sup> Beginning in 2024–25, amounts for each sector are presented before eliminating inter-sector balances. Adjustments represent the elimination of these balances to derive the post-consolidated totals. Comparative figures for 2023–24 have been restated to conform to the adopted presentation. 

<sup>2</sup> The Health segment includes activities related to Ontario's health care system. It includes providing medical, hospital and preventative care, and other health-related services, such as laboratories and diagnostic facilities. It also includes activities related to monitoring compliance and supporting the operation, development, and sustainability of the Province's long-term care system. This includes the Ministry of Health and Ministry of Long-Term Care. 

<sup>3</sup> The Education segment includes activities related to overseeing Ontario's publicly funded education systems (English, French and Catholic), from early childhood education through Grade 12, as well as the child care system, through legislation, policy, and funding models. This includes the Ministry of Education. 

<sup>4</sup> The Children's and Social Services segment includes activities related to funding, designing and delivering programs and services to protect and support people in Ontario during times of need. This includes the Ministry of Children, Community and Social Services.

<sup>5</sup> The Postsecondary Education segment includes activities related to overseeing Ontario's postsecondary education system and supporting research and innovation. This includes the Ministry of Colleges and Universities.

<sup>6</sup> The Justice segment includes activities related to administrating and delivering justice services to all communities in Ontario. It includes delivering of criminal, civil, and family court services, and providing legal services to the Province's ministries, agencies, boards, and commissions. It also includes setting Ontario-wide police and fire standards, providing oversight, supporting crime prevention initiatives at a local and provincial level, as well as operating an adult corrections system. This includes the Ministry of the Attorney General and Ministry of the Solicitor General. 

---

| | |
|:---|:---|
| **102** | **Consolidated Financial Statements, 2024–2025** |

---

------

##### [**Table of Contents**](#toc)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Province of Ontario**<br> **Schedule 3: Expense by Sector <sup>1</sup> (cont'd)** | **Province of Ontario**<br> **Schedule 3: Expense by Sector <sup>1</sup> (cont'd)** | **Province of Ontario**<br> **Schedule 3: Expense by Sector <sup>1</sup> (cont'd)** | **Province of Ontario**<br> **Schedule 3: Expense by Sector <sup>1</sup> (cont'd)** | **Province of Ontario**<br> **Schedule 3: Expense by Sector <sup>1</sup> (cont'd)** | **Province of Ontario**<br> **Schedule 3: Expense by Sector <sup>1</sup> (cont'd)** | **Province of Ontario**<br> **Schedule 3: Expense by Sector <sup>1</sup> (cont'd)** | **Province of Ontario**<br> **Schedule 3: Expense by Sector <sup>1</sup> (cont'd)** | **Province of Ontario**<br> **Schedule 3: Expense by Sector <sup>1</sup> (cont'd)** |
| **Sectors** | **Other<sup>7</sup>** | **Other<sup>7</sup>** | **Interest and Other Debt<br>Servicing Charges<sup>8</sup>** | **Interest and Other Debt<br>Servicing Charges<sup>8</sup>** | **Adjustments<sup>1</sup>** | **Adjustments<sup>1</sup>** | **Total** | **Total** |
| **For the year ended**<br> **March 31**<br> **($ Millions)** | **2025** | 2024<br> Restated<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(*Note 17*) | **2025** | 2024<br> Restated<br> (*Note 17*) | **2025** | 2024 | 2025 | 2024<br> Restated<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(*Note 17*) |
| &nbsp;&nbsp; **Expense** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp; Transfer Payments | **21858** | 16683 |  |  | **(883)** | (735) | **92482** | 80294 |
| &nbsp;&nbsp; Salaries and Wages | **4422** | 4084 |  |  |  |  | **59513** | 57101 |
| &nbsp;&nbsp; Services | **4041** | 4139 |  |  | **(522)** | (490) | **18297** | 18046 |
| &nbsp;&nbsp; Interest and Other Debt Servicing Charges |  |  | **15122** | 14461 |  |  | **15122** | 14461 |
| &nbsp;&nbsp; Supplies and Equipment | **355** | 486 |  |  | **(19)** | (1) | **12281** | 12758 |
| &nbsp;&nbsp; Employee Benefits | **656** | 602 |  |  |  |  | **10408** | 9188 |
| &nbsp;&nbsp; Amortization of Tangible Capital Assets | **3575** | 3404 |  |  |  |  | **8347** | 7969 |
| &nbsp;&nbsp; Pensions and Other Employee Future Benefits *(Note 6)* | **1484** | 1131 |  |  |  |  | **6229** | 5630 |
| &nbsp;&nbsp; Transportation and Communication | **335** | 400 |  |  |  |  | **882** | 914 |
| &nbsp;&nbsp; Power Supply Contract Costs | **40** | 41 |  |  |  |  | **40** | 41 |
| &nbsp;&nbsp; **Other** | **1908** | 1616 | – | – | **(206)** | (203) | **3650** | 3266 |
| &nbsp;&nbsp; **Subtotal** | **38674** | 32586 | **15122** | 14461 |  |  |  |  |
| &nbsp;&nbsp; **Adjustments<sup>1</sup>** | **(341)** | (331) | – | – | **(1630)** | (1429) |  |  |
| &nbsp;&nbsp; **Total** | **38333** | 32255 | **15122** | 14461 |  |  | **227251** | 209668 |

---

<sup>7</sup> The Other segment includes the activities of the Ministries of Agriculture, Food and Rural Affairs; Citizenship and Multiculturalism; Economic Development Job Creation and Trade; Energy; Environment, Conservation and Parks; Finance; Francophone Affairs; Indigenous Affairs; Infrastructure; Labour, Immigration, Training and Skills Development; Mines; Municipal Affairs and Housing; Natural Resources and Forestry; Northern Development; Public and Business Service Delivery; Seniors and Accessibility; Tourism, Culture and Sport; Transportation; Treasury Board Secretariat; the Board of Internal Economy; and Executive Offices, which cannot be allocated to any of the specifically described sector classification. 

<sup>8</sup> Includes activities related to the management of the Province's debt and interest and other debt servicing charges of broader public sector organizations of $558.6 million (2023–24 restated to $546.0 million, see Note 17). Interest related to the Ontario Bonds and T-bills that the Province bought back is $674 million (2023–24, $534 million). 

---

| | |
|:---|:---|
| **Consolidated Financial Statements, 2024–2025** | **103** |

---

------

##### [**Table of Contents**](#toc)

---

| | | | |
|:---|:---|:---|:---|
| <br> **Province of Ontario**<br> **Schedule 4: Expense by Ministry** | <br> **Province of Ontario**<br> **Schedule 4: Expense by Ministry** | <br> **Province of Ontario**<br> **Schedule 4: Expense by Ministry** | <br> **Province of Ontario**<br> **Schedule 4: Expense by Ministry** |
| **($ Millions)** | 2024–25<br>Budget<sup>1,2</sup> | **2024–25<br>Actual** | 2023–24<br> Restated<br> Actual<br> (*Note 17*) |
| &nbsp;&nbsp; Agriculture, Food and Rural Affairs | 856 | **905** | 938 |
| &nbsp;&nbsp; Attorney General | 1966 | **2893** | 2132 |
| &nbsp;&nbsp; Board of Internal Economy | 320 | **486** | 299 |
| &nbsp;&nbsp; Children, Community and Social Services | 19926 | **20736** | 19412 |
| &nbsp;&nbsp; Citizenship and Multiculturalism | 71 | **86** | 82 |
| &nbsp;&nbsp; Colleges and Universities | 12189 | **14146** | 13235 |
| &nbsp;&nbsp; Economic Development, Job Creation and Trade | 2679 | **1738** | 1276 |
| &nbsp;&nbsp; Education | 37606 | **38375** | 37158 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Teachers' Pension | 1700 | **1684** | 1652 |
| &nbsp;&nbsp; Energy | 7653 | **6842** | 6315 |
| &nbsp;&nbsp; Environment, Conservation and Parks | 860 | **862** | 899 |
| &nbsp;&nbsp; Executive Offices | 67 | **72** | 66 |
| &nbsp;&nbsp; Finance | 1367 | **4406** | 1362 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest and Other Debt Servicing Charges | 16464 | **15122** | 14461 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Municipal Partnership Fund | 502 | **535** | 501 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Power Supply Contract Costs |  | **40** | 41 |
| &nbsp;&nbsp; Francophone Affairs | 13 | **13** | 8 |
| &nbsp;&nbsp; Health | 80838 | **88473** | 82894 |
| &nbsp;&nbsp; Indigenous Affairs | 137 | **964** | 145 |
| &nbsp;&nbsp; Infrastructure | 4691 | **3346** | 2670 |
| &nbsp;&nbsp; Labour, Immigration, Training and Skills Development | 1638 | **1727** | 1663 |
| &nbsp;&nbsp; Long-Term Care | 4123 | **3158** | 2564 |
| &nbsp;&nbsp; Mines | 209 | **222** | 549 |
| &nbsp;&nbsp; Municipal Affairs and Housing | 2053 | **2078** | 1770 |
| &nbsp;&nbsp; Natural Resources and Forestry | 815 | **1047** | 1114 |
| &nbsp;&nbsp; Northern Development | 762 | **762** | 704 |
| &nbsp;&nbsp; Public and Business Service Delivery | 743 | **789** | 1034 |
| &nbsp;&nbsp; Seniors and Accessibility | 186 | **162** | 171 |
| &nbsp;&nbsp; Solicitor General | 3912 | **4331** | 3905 |
| &nbsp;&nbsp; Tourism, Culture and Sport | 1955 | **1897** | 1799 |
| &nbsp;&nbsp; Transportation | 7099 | **7369** | 7432 |
| &nbsp;&nbsp; Treasury Board Secretariat | 918 | **678** | 432 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employee and Pensioner Benefits | 1224 | **1307** | 985 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contingency Fund<sup>3</sup> | 1505 | – | – |
| &nbsp;&nbsp; **Total Expense** | 217047 | **227251** | 209668 |

---

<sup>1</sup> Amounts reported as "Plan" in *2024 Budget* have been reclassified. See Note 17. 

<sup>2</sup> Ministry structure is consistent with *2024 Budget*.

<sup>3</sup> See Glossary for definition.

---

| | |
|:---|:---|
| **104** | **Consolidated Financial Statements, 2024–2025** |

---

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##### [**Table of Contents**](#toc)

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| | | |
|:---|:---|:---|
| **Province of Ontario**<br> **Schedule 5: Accounts Payable and Accrued Liabilities** | **Province of Ontario**<br> **Schedule 5: Accounts Payable and Accrued Liabilities** | **Province of Ontario**<br> **Schedule 5: Accounts Payable and Accrued Liabilities** |
| **As at March 31**<br> **($ Millions)** | **2025** | 2024 |
| &nbsp;&nbsp; Transfer Payments | **12755** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13373 |
| &nbsp;&nbsp; Interest and Other Debt Servicing Charges | **4923** | 4573 |
| &nbsp;&nbsp; Salaries, Wages and Benefits | **5563** | 8595 |
| &nbsp;&nbsp; Other<sup>1</sup> | **21686** | 22401 |
| &nbsp;&nbsp; **Total Accounts Payable and Accrued Liabilities** | **44927** | 48942 |
| &nbsp;&nbsp;&nbsp; <sup>1</sup> Includes $425 million (2023–24, restated $502 million) for capital lease obligations. 2024 figure is restated to exclude P3 obligations included in 2023–24. | &nbsp;&nbsp;&nbsp; <sup>1</sup> Includes $425 million (2023–24, restated $502 million) for capital lease obligations. 2024 figure is restated to exclude P3 obligations included in 2023–24. | &nbsp;&nbsp;&nbsp; <sup>1</sup> Includes $425 million (2023–24, restated $502 million) for capital lease obligations. 2024 figure is restated to exclude P3 obligations included in 2023–24. |

---

---

| | | |
|:---|:---|:---|
| **Province of Ontario**<br> **Schedule 6: Accounts Receivable** | **Province of Ontario**<br> **Schedule 6: Accounts Receivable** | **Province of Ontario**<br> **Schedule 6: Accounts Receivable** |
| **As at March 31**<br> **($ Millions)** | **2025** | 2024 <br> Restated <br> (*Note 17*)  |
| &nbsp;&nbsp; Taxes | **8649** | 13009 |
| &nbsp;&nbsp; Transfer Payments<sup>1</sup> | **957** | 1240 |
| &nbsp;&nbsp; Other Accounts Receivable<sup>2</sup> | **12870** | 9531 |
|  | **22476** | 23780 |
| &nbsp;&nbsp; Less: Allowance for Doubtful Accounts<sup>3</sup> | **(1928)** | (1823) |
|  | **20548** | 21957 |
| &nbsp;&nbsp; Government of Canada | **2345** | 2383 |
| &nbsp;&nbsp; **Total Accounts Receivable** | **22893** | 24340 |

---

<sup>1</sup> The Transfer Payment receivable consists primarily of recoverable of $855 million (2023–24, $807 million) for the Ontario Disability Support Program – Financial Assistance, and recoverable of $86 million (2023–24, $252 million), mostly due to OHIP related advance payments that were made to physicians and other practitioners during the COVID-19 pandemic, which are still being recovered. 

<sup>2</sup> Other Accounts Receivable includes trade receivables and tobacco settlement (see Note 10). It excludes some Ontario Works overpayments of benefits paid to recipients by external Ontario Works delivery agents and Ontario Disability Support Program overpayment of benefits paid to recipients who also received federal pandemic benefits. Due to pending validation activities and estimation uncertainty, a reasonable estimate cannot be made at this time and accordingly, no amounts have been recognized in these consolidated financial statements. 

<sup>3</sup> The Allowance for Doubtful Accounts includes a provision of $719 million (2023–24, $672 million) for the Ontario Disability Support Program – Financial Assistance. 

---

| | |
|:---|:---|
| **Consolidated Financial Statements, 2024–2025** | **105** |

---

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##### [**Table of Contents**](#toc)

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| | | |
|:---|:---|:---|
| <br> **Province of Ontario**<br> **Schedule 7: Loans Receivable** | <br> **Province of Ontario**<br> **Schedule 7: Loans Receivable** | <br> **Province of Ontario**<br> **Schedule 7: Loans Receivable** |
| **As at March 31**<br> **($ Millions)** | **2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |
| &nbsp;&nbsp; Government Business Enterprises<sup>1</sup> | **2225** | 2270 |
| &nbsp;&nbsp; Municipalities<sup>2</sup> | **4802** | 4150 |
| &nbsp;&nbsp; Students<sup>3</sup> | **2526** | 2467 |
| &nbsp;&nbsp; Industrial and Commercial<sup>4</sup> | **1103** | 1437 |
| &nbsp;&nbsp; Universities<sup>5</sup> | **125** | 125 |
| &nbsp;&nbsp; Other<sup>6</sup> | **2340** | 2371 |
|  | **13121** | 12820 |
| &nbsp;&nbsp; Unamortized Concession Discounts<sup>7</sup> | **(181)** | (153) |
| &nbsp;&nbsp; Allowance for Doubtful Accounts<sup>8</sup> | **(875)** | (815) |
| &nbsp;&nbsp; **Total Loans Receivable** | **12065** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11852 |

---

<sup>1</sup> <sup>Loans to GBEs bear interest rates of 1.64</sup><sup>per cent to 5.4</sup><sup>per cent (2023–24, 1.64</sup><sup>per cent to 5.7 per cent).</sup>

<sup>2</sup> <sup>Loans to municipalities bear interest at rates of up to 6</sup><sup>per cent (2023–24, 6.17 per cent).</sup>

<sup>3</sup> <sup>Loans to students mostly bear interest at rates of 6</sup><sup>per cent (2023–24, 6.11 per cent).</sup>

<sup>4</sup> <sup>Loans to industrial and commercial enterprises bear interest rates of up to 9.05</sup><sup>per cent (2023–24, 9.05 per cent).</sup>

<sup>5</sup> <sup>Loans to universities are mortgages bearing interest rates of 5.09</sup><sup>per cent to 5.10</sup><sup>per cent (2023–24, 5.09</sup><sup>per cent to 5.10 per cent).</sup>

<sup>6</sup> <sup>Loans to Other include loans for not-for-profit organizations of $2</sup> billion (2023–24, $2 billion), loans to electricity sector union trusts of $27 million (2023–24, $89 million), and loans to OFN Power Holdings LP of $245 million (2023–24, $245 million). 

<sup>7</sup> <sup>Unamortized concession discounts relate to loans made to students of $37 million (2023–24, $nil million), and loans to industrial and commercial enterprises and other of $144</sup> million (2023–24, $153 million). 

<sup>8</sup><sup>Allowance for doubtful accounts relates to loans made to students of $767</sup> <sup>million (2023–24, $726 million), loans made to universities of $0.5</sup> <sup>million (2023–24, $0.5 million) and loans to GBEs, industrial and commercial enterprises and other of $108</sup> <sup>million (2023–24, $88.5 million).</sup> <br>

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|:---|:---|
| **106** | **Consolidated Financial Statements, 2024–2025** |

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------

##### [**Table of Contents**](#toc)

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| | | |
|:---|:---|:---|
| **Repayment Terms**<br> **As at March 31**<br> **($ Millions)** | **Principal**<br> **Repayment** | **Principal**<br> **Repayment** |
| **Years to Maturity** | **2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2024 |
| &nbsp;&nbsp; 1 year | **899** | 1586 |
| &nbsp;&nbsp; 2 years | **1010** | 524 |
| &nbsp;&nbsp; 3 years | **504** | 505 |
| &nbsp;&nbsp; 4 years | **417** | 422 |
| &nbsp;&nbsp; 5 years | **455** | 382 |
| &nbsp;&nbsp; 1–5 years | **3285** | 3419 |
| &nbsp;&nbsp; 6–10 years | **2083** | 2126 |
| &nbsp;&nbsp; 11–15 years | **1071** | 965 |
| &nbsp;&nbsp; 16–20 years | **2519** | 2352 |
| &nbsp;&nbsp; 21–25 years | **3030** | 2921 |
| &nbsp;&nbsp; Over 25 years | **921** | 812 |
| &nbsp;&nbsp; Subtotal | **12909** | 12595 |
| &nbsp;&nbsp; No fixed maturity | **212** | 225 |
| &nbsp;&nbsp; **Total** | **13121** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12820 |

---

---

| | |
|:---|:---|
| **Consolidated Financial Statements, 2024–2025** | **107** |

---

------

##### [**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **Province of Ontario**<br> **Schedule 8: Government Organizations<sup>1</sup>** | **Province of Ontario**<br> **Schedule 8: Government Organizations<sup>1</sup>** |
| &nbsp;&nbsp;&nbsp; **Government Business Enterprises** | **Responsible Ministry** |
| &nbsp;&nbsp;&nbsp; Hydro One Limited | Energy |
| &nbsp;&nbsp;&nbsp; iGaming Ontario | Attorney General |
| &nbsp;&nbsp;&nbsp; Liquor Control Board of Ontario | Finance |
| &nbsp;&nbsp;&nbsp; Ontario Cannabis Retail Corporation | Finance |
| &nbsp;&nbsp;&nbsp; Ontario Lottery and Gaming Corporation | Finance |
| &nbsp;&nbsp;&nbsp; Ontario Power Generation Inc. | Energy |
| &nbsp;&nbsp;&nbsp; **Other Government Organizations** | **Responsible Ministry** |
| &nbsp;&nbsp;&nbsp; Agricorp | Agriculture, Food and Rural Affairs |
| &nbsp;&nbsp;&nbsp; Agricultural Research and Innovation Ontario | Agriculture, Food and Rural Affairs |
| &nbsp;&nbsp;&nbsp; Alcohol and Gaming Commission of Ontario | Attorney General |
| &nbsp;&nbsp;&nbsp; Algonquin Forestry Authority | Natural Resources and Forestry |
| &nbsp;&nbsp;&nbsp; Building Ontario Fund | Finance |
| &nbsp;&nbsp;&nbsp; Destination Ontario | Tourism, Culture and Sport |
| &nbsp;&nbsp;&nbsp; Education Quality and Accountability Office | Education |
| &nbsp;&nbsp;&nbsp; Fair Hydro Trust | Energy |
| &nbsp;&nbsp;&nbsp; Financial Services Regulatory Authority of Ontario | Finance |
| &nbsp;&nbsp;&nbsp; Forestry Futures Trust | Natural Resources and Forestry |
| &nbsp;&nbsp;&nbsp; Forest Renewal Trust | Natural Resources and Forestry |
| &nbsp;&nbsp;&nbsp; General Real Estate Portfolio | Infrastructure |
| &nbsp;&nbsp;&nbsp; Independent Electricity System Operator | Energy |
| &nbsp;&nbsp;&nbsp; Invest Ontario | Economic Development, Job Creation and Trade |
| &nbsp;&nbsp;&nbsp; Investment Management Corporation of Ontario | Finance |
| &nbsp;&nbsp;&nbsp; Legal Aid Ontario | Attorney General |
| &nbsp;&nbsp;&nbsp; Metrolinx | Transportation |
| &nbsp;&nbsp;&nbsp; Metropolitan Toronto Convention Centre Corporation | Tourism, Culture and Sport |
| &nbsp;&nbsp;&nbsp; Niagara Parks Commission | Tourism, Culture and Sport |
| &nbsp;&nbsp;&nbsp; Northern Ontario Heritage Fund Corporation | Northern Development |
| &nbsp;&nbsp;&nbsp; Ontario Agency for Health Protection and Promotion (Public Health Ontario) | Health |
| &nbsp;&nbsp;&nbsp; Ontario Arts Council | Tourism, Culture and Sport |
| &nbsp;&nbsp;&nbsp; Ontario Clean Water Agency | Environment, Conservation and Parks |
| &nbsp;&nbsp;&nbsp; Ontario Educational Communications Authority (TVO) | Education |
| &nbsp;&nbsp;&nbsp; Ontario Electricity Financial Corporation | Finance |
| &nbsp;&nbsp;&nbsp; Ontario Energy Board | Energy |
| &nbsp;&nbsp;&nbsp; Ontario Financing Authority | Finance |
| &nbsp;&nbsp;&nbsp; Ontario French-Language Educational Communications Authority (TFO) | Education |
| &nbsp;&nbsp;&nbsp; Ontario Health | Health |
| &nbsp;&nbsp;&nbsp; Ontario Health atHome2 | Health |
| &nbsp;&nbsp;&nbsp; Ontario Heritage Trust | Citizenship and Multiculturalism |
| &nbsp;&nbsp;&nbsp; Ontario Infrastructure and Lands Corporation (Infrastructure Ontario) | Infrastructure |
| &nbsp;&nbsp;&nbsp; Ontario Northland Transportation Commission | Transportation |
| &nbsp;&nbsp;&nbsp; Ontario Place Corporation | Infrastructure |
| &nbsp;&nbsp;&nbsp; Ontario Securities Commission | Finance |
| &nbsp;&nbsp;&nbsp; Ontario Trillium Foundation | Tourism, Culture and Sport |
| &nbsp;&nbsp;&nbsp; Ornge | Health |
| &nbsp;&nbsp;&nbsp; Ottawa Convention Centre Corporation | Tourism, Culture and Sport |
| &nbsp;&nbsp;&nbsp; Science North | Tourism, Culture and Sport |
| &nbsp;&nbsp;&nbsp; Skilled Trades Ontario | Labour, Immigration, Training and Skills Development |

---

<sup>1</sup> Represents all consolidated organizations included in the Province's consolidated financial statements as at March 31, 2025. This schedule is updated on an annual basis to reflect any amalgamations or dissolutions of consolidated organizations in the year. Links to these entities' web URLs are available on Ontario.ca. Other controlled organizations that do not meet the consolidation threshold of materiality are instead reflected as government transfer payment expense in these consolidated financial statements through the accounts of the ministries responsible for them. 

---

| | |
|:---|:---|
| **108** | **Consolidated Financial Statements, 2024–2025** |

---

------

##### [**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **Province of Ontario**<br> **Schedule 8: Government Organizations<sup>1</sup>** | |
| &nbsp;&nbsp;&nbsp; **Other Government Organizations (cont'd)** | **Responsible Ministry (cont'd)** |
| &nbsp;&nbsp;&nbsp; St. Lawrence Parks Commission | Tourism, Culture and Sport |
| &nbsp;&nbsp;&nbsp; Supply Ontario | Treasury Board Secretariat |
| &nbsp;&nbsp;&nbsp; The Centennial Centre of Science and Technology (Ontario Science Centre) | Infrastructure |
| &nbsp;&nbsp;&nbsp; The Royal Ontario Museum | Tourism, Culture and Sport |
| &nbsp;&nbsp;&nbsp; Toronto Organizing Committee for the Pan American and Parapan American Games | Tourism, Culture and Sport |
| &nbsp;&nbsp;&nbsp; Toronto Waterfront Revitalization Corporation (Waterfront Toronto)2 | Infrastructure |
| &nbsp;&nbsp;&nbsp; Transmission Corridor Program | Infrastructure |
| &nbsp;&nbsp;&nbsp; Venture Ontario | Economic Development, Job Creation and Trade |
| &nbsp;&nbsp;&nbsp; **Broader Public Sector Organizations** | &nbsp;&nbsp;&nbsp; **Broader Public Sector Organizations** |
| &nbsp;&nbsp;&nbsp;&nbsp; *Public Hospitals — Ministry of Health* | &nbsp;&nbsp;&nbsp;&nbsp; *Public Hospitals — Ministry of Health* |
| &nbsp;&nbsp;&nbsp; Alexandra Hospital Ingersoll | Hanover & District Hospital |
| &nbsp;&nbsp;&nbsp; Alexandra Marine & General Hospital | Headwaters Health Care Centre |
| &nbsp;&nbsp;&nbsp; Almonte General Hospital | Health Sciences North |
| &nbsp;&nbsp;&nbsp; Anson General Hospital | Holland Bloorview Kids Rehabilitation Hospital |
| &nbsp;&nbsp;&nbsp; Arnprior Regional Health | Hôpital général de Hawkesbury and District General Hospital Inc. |
| &nbsp;&nbsp;&nbsp; Atikokan Health and Community Services | Hôpital Montfort |
| &nbsp;&nbsp;&nbsp; Baycrest Hospital | Hôpital Notre-Dame Hospital (Hearst) |
| &nbsp;&nbsp;&nbsp; Bingham Memorial Hospital | Hornepayne Community Hospital |
| &nbsp;&nbsp;&nbsp; Blanche River Health | Hôtel-Dieu Grace Healthcare |
| &nbsp;&nbsp;&nbsp; Bluewater Health | Humber River Health |
| &nbsp;&nbsp;&nbsp; Brant Community Healthcare System | Huron Perth Healthcare Alliance |
| &nbsp;&nbsp;&nbsp; Brightshores Health System | Joseph Brant Hospital |
| &nbsp;&nbsp;&nbsp; Brockville General Hospital | Kemptville District Hospital |
| &nbsp;&nbsp;&nbsp; Bruyere Health | Kingston Health Sciences Centre |
| &nbsp;&nbsp;&nbsp; Cambridge Memorial Hospital | Lady Dunn Health Centre |
| &nbsp;&nbsp;&nbsp; Campbellford Memorial Hospital | Lady Minto Hospital, Cochrane |
| &nbsp;&nbsp;&nbsp; Carleton Place & District Memorial Hospital | Lake of the Woods District Hospital |
| &nbsp;&nbsp;&nbsp; Casey House | Lakeridge Health |
| &nbsp;&nbsp;&nbsp; Chatham-Kent Health Alliance | Lennox and Addington County General Hospital |
| &nbsp;&nbsp;&nbsp; Children's Hospital of Eastern Ontario – Ottawa Children's Treatment Centre | Listowel Memorial Hospital |
| &nbsp;&nbsp;&nbsp; Collingwood General and Marine Hospital | London Health Sciences Centre |
| &nbsp;&nbsp;&nbsp; Cornwall Community Hospital | Mackenzie Health |
| &nbsp;&nbsp;&nbsp; Deep River & District Health | Manitoulin Health Centre |
| &nbsp;&nbsp;&nbsp; Dryden Regional Health Centre | Mattawa General Hospital |
| &nbsp;&nbsp;&nbsp; Erie Shores HealthCare | Muskoka Algonquin Healthcare |
| &nbsp;&nbsp;&nbsp; Espanola General Hospital | Niagara Health System |
| &nbsp;&nbsp;&nbsp; Four Counties Health Services | Nipigon District Memorial Hospital |
| &nbsp;&nbsp;&nbsp; Georgian Bay General Hospital | Norfolk General Hospital |
| &nbsp;&nbsp;&nbsp; Geraldton District Hospital | North Bay Regional Health Centre |
| &nbsp;&nbsp;&nbsp; Glengarry Memorial Hospital | North of Superior Healthcare Group |
| &nbsp;&nbsp;&nbsp; Grand River Hospital | North Shore Health Network |
| &nbsp;&nbsp;&nbsp; Groves Memorial Community Hospital | North Wellington Health Care Corporation |
| &nbsp;&nbsp;&nbsp; Guelph General Hospital | North York General Hospital |
| &nbsp;&nbsp;&nbsp; Haldimand War Memorial Hospital | Northumberland Hills Hospital |
| &nbsp;&nbsp;&nbsp; Haliburton Highlands Health Services Corporation | Oak Valley Health |
| &nbsp;&nbsp;&nbsp; Halton Healthcare Services Corporation | Orillia Soldiers' Memorial Hospital |
| &nbsp;&nbsp;&nbsp; Hamilton Health Sciences Corporation |  |
|  <sup> 2</sup> On June 21, 2024, 14 Home and Community Care Support Services organizations amalgamated into Ontario Health atHome.<br> <sup> 3</sup> Toronto Waterfront Revitalization Corporation (Waterfront Toronto) is a government partnership with the Province having one-third interest. | <sup>2</sup> On June 21, 2024, 14 Home and Community Care Support Services organizations amalgamated into Ontario Health atHome.<br> <sup>3</sup> Toronto Waterfront Revitalization Corporation (Waterfront Toronto) is a government partnership with the Province having one-third interest. |

---

---

| | |
|:---|:---|
| **Consolidated Financial Statements, 2024–2025** | **109** |

---

------

##### [**Table of Contents**](#toc)

---

| | |
|:---|:---|
| &nbsp;&nbsp; **Province of Ontario**<br> **Schedule 8: Government Organizations<sup>1</sup>**  | &nbsp;&nbsp; **Province of Ontario**<br> **Schedule 8: Government Organizations<sup>1</sup>**  |
| &nbsp;&nbsp;&nbsp; *Public Hospitals — Ministry of Health (cont'd)* | &nbsp;&nbsp;&nbsp; *Public Hospitals — Ministry of Health (cont'd)* |
| &nbsp;&nbsp;&nbsp; Pembroke Regional Hospital Inc. | St. Joseph's Health Care, London |
| &nbsp;&nbsp;&nbsp; Perth and Smiths Falls District Hospital | St. Joseph's Health Centre Guelph |
| &nbsp;&nbsp;&nbsp; Peterborough Regional Health Centre | St. Joseph's Healthcare Hamilton |
| &nbsp;&nbsp;&nbsp; Providence Care Centre (Kingston) | St. Mary's General Hospital |
| &nbsp;&nbsp;&nbsp; Queensway Carleton Hospital | St. Thomas Elgin General Hospital |
| &nbsp;&nbsp;&nbsp; Quinte Healthcare Corporation | Stevenson Memorial Hospital |
| &nbsp;&nbsp;&nbsp; Red Lake Margaret Cochenour Memorial Hospital Corporation | Strathroy Middlesex General Hospital |
| &nbsp;&nbsp;&nbsp; Religious Hospitallers of St. Joseph of Cornwall, Ontario | Sunnybrook Health Sciences Centre |
| &nbsp;&nbsp;&nbsp; Religious Hospitallers of St. Joseph of the Hotel Dieu of St. Catharines | Temiskaming Hospital |
| &nbsp;&nbsp;&nbsp; Renfrew Victoria Hospital | The Hospital for Sick Children |
| &nbsp;&nbsp;&nbsp; Riverside Health Care Facilities Inc. | The Ottawa Hospital |
| &nbsp;&nbsp;&nbsp; Ross Memorial Hospital | Thunder Bay Regional Health Sciences Centre |
| &nbsp;&nbsp;&nbsp; Royal Victoria Regional Health Centre | Tillsonburg District Memorial Hospital |
| &nbsp;&nbsp;&nbsp; Runnymede Healthcare Centre | Timmins and District Hospital |
| &nbsp;&nbsp;&nbsp; Salvation Army Toronto Grace Health Centre | Toronto East Health Network |
| &nbsp;&nbsp;&nbsp; Sante Manitouwadge Health | Trillium Health Partners |
| &nbsp;&nbsp;&nbsp; Sault Area Hospital | Unity Health Toronto |
| &nbsp;&nbsp;&nbsp; Scarborough Health Network | University Health Network |
| &nbsp;&nbsp;&nbsp; Sensenbrenner Hospital | University of Ottawa Heart Institute |
| &nbsp;&nbsp;&nbsp; Services de santé de Chapleau Health Services | Weeneebayko Area Health Authority |
| &nbsp;&nbsp;&nbsp; Sinai Health System | West Haldimand General Hospital |
| &nbsp;&nbsp;&nbsp; Sioux Lookout Meno Ya Win Health Centre | West Nipissing General Hospital |
| &nbsp;&nbsp;&nbsp; Smooth Rock Falls Hospital | West Parry Sound Health Centre |
| &nbsp;&nbsp;&nbsp; South Bruce Grey Health Centre | William Osler Health System |
| &nbsp;&nbsp;&nbsp; South Huron Hospital | Winchester District Memorial Hospital |
| &nbsp;&nbsp;&nbsp; Southlake Regional Health Centre | Windsor Regional Hospital |
| &nbsp;&nbsp;&nbsp; St. Francis Memorial Hospital | Wingham and District Hospital |
| &nbsp;&nbsp;&nbsp; St. Joseph's Care Group | Women's College Hospital |
| &nbsp;&nbsp;&nbsp; St. Joseph's Continuing Care Centre, Centre of Sudbury | Woodstock Hospital |
| &nbsp;&nbsp;&nbsp; St. Joseph's General Hospital, Elliot Lake |  |
| &nbsp;&nbsp;&nbsp; *Specialty Psychiatric Hospitals — Ministry of Health*  | &nbsp;&nbsp;&nbsp; *Specialty Psychiatric Hospitals — Ministry of Health*  |
| &nbsp;&nbsp;&nbsp; Centre for Addiction and Mental Health | Royal Ottawa Health Care Group |
| &nbsp;&nbsp;&nbsp; Ontario Shores Centre for Mental Health Sciences | Waypoint Centre for Mental Health Care |
| &nbsp;&nbsp;&nbsp; *School Boards — Ministry of Education* | &nbsp;&nbsp;&nbsp; *School Boards — Ministry of Education* |
| &nbsp;&nbsp;&nbsp; Algoma District School Board | Conseil scolaire catholique Providence |
| &nbsp;&nbsp;&nbsp; Algonquin & Lakeshore Catholic District School Board | Conseil scolaire de district catholique de l'Est ontarien |
| &nbsp;&nbsp;&nbsp; Avon Maitland District School Board | Conseil scolaire de district catholique des Aurores boréales |
| &nbsp;&nbsp;&nbsp; Bloorview School Authority | Conseil scolaire de district catholique des Grandes Rivières |
| &nbsp;&nbsp;&nbsp; Bluewater District School Board | Conseil scolaire de district catholique du Centre-Est de l'Ontario |
| &nbsp;&nbsp;&nbsp; Brant Haldimand Norfolk Catholic District School Board | Conseil scolaire de district catholique du Nouvel-Ontario |
| &nbsp;&nbsp;&nbsp; Bruce-Grey Catholic District School Board | Conseil scolaire de district catholique Franco-Nord |
| &nbsp;&nbsp;&nbsp; Catholic District School Board of Eastern Ontario | Conseil scolaire public du Grand Nord de l'Ontario |
| &nbsp;&nbsp;&nbsp; CHEO School Authority | Conseil scolaire public du Nord-Est de l'Ontario |
| &nbsp;&nbsp;&nbsp; Conseil des écoles publiques de l'Est de l'Ontario | Conseil scolaire Viamonde |
| &nbsp;&nbsp;&nbsp; Conseil scolaire catholique MonAvenir | Consortium Centre Jules-Léger |

---

---

| | |
|:---|:---|
| **110** | **Consolidated Financial Statements, 2024–2025** |

---

------

##### [**Table of Contents**](#toc)

---

| | |
|:---|:---|
| &nbsp;&nbsp; **Province of Ontario**<br> **Schedule 8: Government Organizations<sup>1</sup>**  | &nbsp;&nbsp; **Province of Ontario**<br> **Schedule 8: Government Organizations<sup>1</sup>**  |
| &nbsp;&nbsp;&nbsp; *School Boards — Ministry of Education* | &nbsp;&nbsp;&nbsp; *School Boards — Ministry of Education* |
| &nbsp;&nbsp;&nbsp; District School Board of Niagara | Northeastern Catholic District School Board |
| &nbsp;&nbsp;&nbsp; District School Board Ontario North East | Northwest Catholic District School Board |
| &nbsp;&nbsp;&nbsp; Dufferin-Peel Catholic District School Board | Ottawa Catholic District School Board |
| &nbsp;&nbsp;&nbsp; Durham Catholic District School Board | Ottawa-Carleton District School Board |
| &nbsp;&nbsp;&nbsp; Durham District School Board | Peel District School Board |
| &nbsp;&nbsp;&nbsp; Grand Erie District School Board | Penetanguishene Protestant Separate School Board |
| &nbsp;&nbsp;&nbsp; Grandview School Authority | Peterborough Victoria Northumberland and Clarington Catholic District School Board |
| &nbsp;&nbsp;&nbsp; Greater Essex County District School Board | Rainbow District School Board |
| &nbsp;&nbsp;&nbsp; Halton Catholic District School Board | Rainy River District School Board |
| &nbsp;&nbsp;&nbsp; Halton District School Board | Renfrew County Catholic District School Board |
| &nbsp;&nbsp;&nbsp; Hamilton-Wentworth Catholic District School Board | Renfrew County District School Board |
| &nbsp;&nbsp;&nbsp; Hamilton-Wentworth District School Board | Simcoe County District School Board |
| &nbsp;&nbsp;&nbsp; Hastings and Prince Edward District School Board | Simcoe Muskoka Catholic District School Board |
| &nbsp;&nbsp;&nbsp; Huron-Perth Catholic District School Board | St. Clair Catholic District School Board |
| &nbsp;&nbsp;&nbsp; Huron-Superior Catholic District School Board | Sudbury Catholic District School Board |
| &nbsp;&nbsp;&nbsp; James Bay Lowlands Secondary School Board | Superior North Catholic District School Board |
| &nbsp;&nbsp;&nbsp; John McGivney Children's Centre School Authority | Superior-Greenstone District School Board |
| &nbsp;&nbsp;&nbsp; Kawartha Pine Ridge District School Board | Thames Valley District School Board |
| &nbsp;&nbsp;&nbsp; Keewatin-Patricia District School Board | Thunder Bay Catholic District School Board |
| &nbsp;&nbsp;&nbsp; Kenora Catholic District School Board | Toronto Catholic District School Board |
| &nbsp;&nbsp;&nbsp; KidsAbility School Authority | Toronto District School Board |
| &nbsp;&nbsp;&nbsp; Lakehead District School Board | Trillium Lakelands District School Board |
| &nbsp;&nbsp;&nbsp; Lambton Kent District School Board | Upper Canada District School Board |
| &nbsp;&nbsp;&nbsp; Limestone District School Board | Upper Grand District School Board |
| &nbsp;&nbsp;&nbsp; London District Catholic School Board | Waterloo Catholic District School Board |
| &nbsp;&nbsp;&nbsp; Moose Factory Island District School Area Board | Waterloo Region District School Board |
| &nbsp;&nbsp;&nbsp; Moosonee District School Area Board | Wellington Catholic District School Board |
| &nbsp;&nbsp;&nbsp; Near North District School Board | Windsor-Essex Catholic District School Board |
| &nbsp;&nbsp;&nbsp; Niagara Catholic District School Board | York Catholic District School Board |
| &nbsp;&nbsp;&nbsp; Niagara Peninsula Children's Centre School Authority | York Region District School Board |
| &nbsp;&nbsp;&nbsp; Nipissing-Parry Sound Catholic District School Board |  |
| &nbsp;&nbsp;&nbsp; Colleges — Ministry of Colleges and Universities | &nbsp;&nbsp;&nbsp; Colleges — Ministry of Colleges and Universities |
| &nbsp;&nbsp;&nbsp; Algonquin College of Applied Arts and Technology | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Humber College Institute of Technology and Advanced Learning |
| &nbsp;&nbsp;&nbsp; Cambrian College of Applied Arts and Technology | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lambton College of Applied Arts and Technology |
| &nbsp;&nbsp;&nbsp; Canadore College of Applied Arts and Technology | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loyalist College of Applied Arts and Technology |
| &nbsp;&nbsp;&nbsp; Centennial College of Applied Arts and Technology | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mohawk College of Applied Arts and Technology |
| &nbsp;&nbsp;&nbsp; Collège Boréal d'arts appliqués et de technologie | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Niagara College of Applied Arts and Technology |
| &nbsp;&nbsp;&nbsp; Collège d'arts appliqués et de technologie La Cité collégiale | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Northern College of Applied Arts and Technology |
| &nbsp;&nbsp;&nbsp; Conestoga College Institute of Technology and Advanced Learning | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sault College of Applied Arts and Technology |
| &nbsp;&nbsp;&nbsp; Confederation College of Applied Arts and Technology | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Seneca College of Applied Arts and Technology |
| &nbsp;&nbsp;&nbsp; Durham College of Applied Arts and Technology | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sheridan College Institute of Technology and Advanced Learning |
| &nbsp;&nbsp;&nbsp; Fanshawe College of Applied Arts and Technology | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sir Sandford Fleming College of Applied Arts and Technology |
| &nbsp;&nbsp;&nbsp; George Brown College of Applied Arts and Technology | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; St. Clair College of Applied Arts and Technology |
| &nbsp;&nbsp;&nbsp; Georgian College of Applied Arts and Technology | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; St. Lawrence College of Applied Arts and Technology |

---

---

| | |
|:---|:---|
| **Consolidated Financial Statements, 2024–2025** | **111** |

---

------

##### [**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **Province of Ontario**<br> **Schedule 8: Government Organizations<sup>1</sup>**  | **Province of Ontario**<br> **Schedule 8: Government Organizations<sup>1</sup>**  |
| &nbsp;&nbsp;&nbsp; *Children's Aid Societies — Ministry of Children, Community and Social Services* | &nbsp;&nbsp;&nbsp; *Children's Aid Societies — Ministry of Children, Community and Social Services* |
| &nbsp;&nbsp;&nbsp; Bruce Grey Child and Family Services | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hamilton Child and Family Supports |
| &nbsp;&nbsp;&nbsp; Catholic Children's Aid Society of Hamilton | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Highland Shores Children's Aid Society |
| &nbsp;&nbsp;&nbsp; Child and Family Services of Grand Erie | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Huron-Perth Children's Aid Society |
| &nbsp;&nbsp;&nbsp; Children & Family Services for York Region | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jewish Family and Child Service of Greater Toronto |
| &nbsp;&nbsp;&nbsp; Children's Aid Society of Algoma | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kawartha-Haliburton Children's Aid Society |
| &nbsp;&nbsp;&nbsp; Children's Aid Society of London & Middlesex | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kenora-Rainy River Districts Child and Family Services |
| &nbsp;&nbsp;&nbsp; Children's Aid Society of the City of Sarnia and the County of Lambton | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Linck, Child Youth and Family Supports |
| &nbsp;&nbsp;&nbsp; Children's Aid Society of the Districts of Sudbury and Manitoulin | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; North Eastern Ontario Family and Children's Services |
| &nbsp;&nbsp;&nbsp; Children's Aid Society of the Niagara Region | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Simcoe Muskoka Child Youth and Family Services |
| &nbsp;&nbsp;&nbsp; Children's Aid Society of Toronto | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Catholic Children's Aid Society of Toronto |
| &nbsp;&nbsp;&nbsp; Dufferin Child and Family Services | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Children's Aid Society of Ottawa |
| &nbsp;&nbsp;&nbsp; Durham Children's Aid Society | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Children's Aid Society of Oxford County Inc. |
| &nbsp;&nbsp;&nbsp; Family and Children's Services of Frontenac Lennox and Addington | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Children's Aid Society of the District of Nipissing and Parry Sound |
| &nbsp;&nbsp;&nbsp; Family and Children's Services of Guelph and Wellington County | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Children's Aid Society of the District of Thunder Bay |
| &nbsp;&nbsp;&nbsp; Family and Children's Services of Lanark Leeds and Grenville | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Children's Aid Society of the Region of Peel |
| &nbsp;&nbsp;&nbsp; Family and Children's Services of Renfrew County | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Children's Aid Society of the United Counties of Stormont-Dundas-Glengarry |
| &nbsp;&nbsp;&nbsp; Family and Children's Services of St. Thomas and Elgin | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Valoris for Children and Adults of Prescott-Russell |
| &nbsp;&nbsp;&nbsp; Family and Children's Services of the Waterloo Region | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Windsor-Essex Children's Aid Society |
| &nbsp;&nbsp;&nbsp; Halton Children's Aid Society |  |

---

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| | |
|:---|:---|
| **112** | **Consolidated Financial Statements, 2024–2025** |

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##### [**Table of Contents**](#toc)
 **Province of Ontario** 

 **Schedule 9: Government Business Enterprises<sup>1</sup>** 

Summary financial information of Government Business Enterprises is provided below

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **For the year ended**<br> **March 31, 2025**<br> **($ Millions)**<br>| **Hydro One<br>Limited<sup>2</sup>** | **iGaming<br>Ontario** | **Liquor<br>Control<br>Board of<br>Ontario** | **Ontario<br>Cannabis<br>Retail<br>Corporation** | **Ontario<br>Lottery and<br>Gaming<br>Corporation** | **Ontario<br>Power<br>Generation<br>Inc.** | **2025**<br> **Total** | 2024<br> Total |
| &nbsp;&nbsp; **Assets** | &nbsp;&nbsp; **Assets** | &nbsp;&nbsp; **Assets** | &nbsp;&nbsp; **Assets** | &nbsp;&nbsp; **Assets** | &nbsp;&nbsp; **Assets** | &nbsp;&nbsp; **Assets** | &nbsp;&nbsp; **Assets** | &nbsp;&nbsp; **Assets** |
| &nbsp;&nbsp; Cash and Temporary Investments | 123 | 273 | 404 | 537 | 495 | 2779 | **4611** | 3549 |
| &nbsp;&nbsp; Accounts Receivable | 1344 | 46 | 152 | 2 | 313 | 840 | **2697** | 2295 |
| &nbsp;&nbsp; Inventories |  |  | 716 | 90 | 47 | 424 | **1277** | 1128 |
| &nbsp;&nbsp; Prepaid Expenses |  | 1 | 51 | 2 | 25 | 252 | **331** | 402 |
| &nbsp;&nbsp; Fixed Assets | 27410 |  | 1054 | 42 | 992 | 40721 | **70219** | 64685 |
| &nbsp;&nbsp; Other Assets<br>| 9609  | –  | –  | –  | 99  | 28945  | **38653**  | 36749  |
| &nbsp;&nbsp; **Total Assets** | **38486** | **320** | **2377** | **673** | **1971** | **73961** | **117788** | 108808 |
| &nbsp;&nbsp; **Liabilities** | &nbsp;&nbsp; **Liabilities** | &nbsp;&nbsp; **Liabilities** | &nbsp;&nbsp; **Liabilities** | &nbsp;&nbsp; **Liabilities** | &nbsp;&nbsp; **Liabilities** | &nbsp;&nbsp; **Liabilities** | &nbsp;&nbsp; **Liabilities** | &nbsp;&nbsp; **Liabilities** |
| &nbsp;&nbsp; Accounts Payable | 1988 | 81 | 965 | 174 | 440 | 2649 | **6297** | 5458 |
| &nbsp;&nbsp; Dividends Payable |  |  |  | 68 |  |  | **68** | 78 |
| &nbsp;&nbsp; Notes Payable | 659 |  |  |  |  |  | **659** | 497 |
| &nbsp;&nbsp; Deferred Revenue |  |  |  |  | 141 | 380 | **521** | 555 |
| &nbsp;&nbsp; Long-Term Debt | 17079 |  | 795 | 34 | 74 | 12097 | **30079** | 26949 |
| &nbsp;&nbsp; Other Liabilities<br>| 6376  | 87  | –  | 36  | 803  | 30075  | **37377**  | 35577  |
| &nbsp;&nbsp; **Total Liabilities** | **26102** | **168** | **1760** | **312** | **1458** | **45201** | **75001** | 69114 |
| &nbsp;&nbsp; Net Assets before Non-Controlling Interest | 12384 | 152 | 617 | 361 | 513 | 28760 | **42787** | 39694 |
| &nbsp;&nbsp; Non-Controlling Interest<br>| (6592)  | –  | –  | –  | –  | (196)  | **(6788)**  | (6527)  |
| &nbsp;&nbsp; **Net Assets after Non-Controlling Interest**<br>| **5792**  | **152**  | **617**  | **361**  | **513**  | **28564**  | **35999**  | 33167  |
| &nbsp;&nbsp; **Revenue** | **4107** | **2911** | **7414** | **1762** | **9499** | **6801** | **32494** | 31571 |
| &nbsp;&nbsp; **Expenses** | **3536** | **2692** | **5243** | **1515** | **7252** | **4791** | **25029** | 24144 |
| &nbsp;&nbsp; **Net Income** | **571** | **219** | **2171** | **247** | **2247** | **2010** | **7465** | 7427 |

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|:---|:---|
| **Consolidated Financial Statements, 2024–2025** | **113** |

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##### [**Table of Contents**](#toc)

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Province of Ontario**<br> **Schedule 9: Government Business Enterprises<sup>1</sup> (cont'd)**<br> Summary financial information of Government Business Enterprises is provided below | **Province of Ontario**<br> **Schedule 9: Government Business Enterprises<sup>1</sup> (cont'd)**<br> Summary financial information of Government Business Enterprises is provided below | **Province of Ontario**<br> **Schedule 9: Government Business Enterprises<sup>1</sup> (cont'd)**<br> Summary financial information of Government Business Enterprises is provided below | **Province of Ontario**<br> **Schedule 9: Government Business Enterprises<sup>1</sup> (cont'd)**<br> Summary financial information of Government Business Enterprises is provided below | **Province of Ontario**<br> **Schedule 9: Government Business Enterprises<sup>1</sup> (cont'd)**<br> Summary financial information of Government Business Enterprises is provided below | **Province of Ontario**<br> **Schedule 9: Government Business Enterprises<sup>1</sup> (cont'd)**<br> Summary financial information of Government Business Enterprises is provided below | **Province of Ontario**<br> **Schedule 9: Government Business Enterprises<sup>1</sup> (cont'd)**<br> Summary financial information of Government Business Enterprises is provided below | **Province of Ontario**<br> **Schedule 9: Government Business Enterprises<sup>1</sup> (cont'd)**<br> Summary financial information of Government Business Enterprises is provided below | **Province of Ontario**<br> **Schedule 9: Government Business Enterprises<sup>1</sup> (cont'd)**<br> Summary financial information of Government Business Enterprises is provided below |
| **For the year ended**<br> **March 31, 2025**<br> **($ Millions)** | **Hydro<br>One<br>Limited<sup>2</sup>** | **iGaming<br>Ontario** | **Liquor<br>Control<br>Board of<br>Ontario** | **Ontario<br>Cannabis<br>Retail<br>Corporation** | **Ontario<br>Lottery and<br>Gaming<br>Corporation** | **Ontario<br>Power<br>Generation<br>Inc.** | **2025**<br> **Total** | 2024<br> Total |
| &nbsp;&nbsp; Net Income | 571 | 219 | 2171 | 247 | 2247 | 2010 | **7465** | 7427 |
| &nbsp;&nbsp; Net Assets at Beginning of Year before Accumulated Other Comprehensive Income (AOCI) | 5609 | 114 | 588 | 337 | 669 | 25826 | **33143** | 29878 |
| &nbsp;&nbsp; Increase in Fair Value of Ontario Nuclear Funds *(Note 16)* |  |  |  |  |  | 195 | **195** | 1138 |
| &nbsp;&nbsp; Contribution Deficit – OPG |  |  |  |  |  | (2) | **(2)** | (2) |
| &nbsp;&nbsp; Deferred Losses/(Gains) Adjustments |  |  |  |  |  | 3 | **3** | (29) |
| &nbsp;&nbsp; Equity Impact – IFRS Adjustment for Ontario Power Generation's Pension, Other Employee Future Benefits Liabilities and Other Costs |  |  |  |  |  | 348 | **348** | 271 |
| &nbsp;&nbsp; Remittances to Consolidated Revenue Fund | (355) | (181) | (2130) | (223) | (2403) | – | **(5292)** | (5540) |
| &nbsp;&nbsp; **Net Assets before AOCI** | **5825** | **152** | **629** | **361** | **513** | **28380** | **35860** | 33143 |
| &nbsp;&nbsp; AOCI at Beginning of Year | (39) |  | (10) |  |  | 73 | **24** | 82 |
| &nbsp;&nbsp; Other Comprehensive Income (Loss) | 6 | – | (2) | – | – | 111 | **115** | (58) |
| &nbsp;&nbsp; AOCI at Year End | (33) | – | (12) | – | – | 184 | **139** | 24 |
| &nbsp;&nbsp; **Net Assets** | **5792** | **152** | **617** | **361** | **513** | **28564** | **35999** | 33167 |

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 <sup>1</sup> Amounts reported using International Financial Reporting Standards (IFRS). 

<sup>2</sup> As at March 31, 2025, the Province owned approximately 47.1 per cent (2023–24, 47.1 per cent) of Hydro One Limited.

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|:---|:---|:---|
| &nbsp;&nbsp;&nbsp; **Province of Ontario**<br> **Government Business Enterprises<sup>1</sup>**<br> Material balances with entities included in the government's reporting entity reported in the Consolidated Statement of Financial Position. | &nbsp;&nbsp;&nbsp; **Province of Ontario**<br> **Government Business Enterprises<sup>1</sup>**<br> Material balances with entities included in the government's reporting entity reported in the Consolidated Statement of Financial Position. | &nbsp;&nbsp;&nbsp; **Province of Ontario**<br> **Government Business Enterprises<sup>1</sup>**<br> Material balances with entities included in the government's reporting entity reported in the Consolidated Statement of Financial Position. |
| **As at March 31**<br> **($ Millions)** | **2025** | **2024** |
| &nbsp;&nbsp; Financial Assets | **1157** | 989 |
| &nbsp;&nbsp; Debts | **2226** | 2253 |
| &nbsp;&nbsp; Other Liabilities | **457** | 426 |

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 <sup>1</sup> Amounts reported using International Financial Reporting Standards (IFRS). 

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| **114** | **Consolidated Financial Statements, 2024–2025** |

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##### [**Table of Contents**](#toc)

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Repayment schedule for long-term debts contracted with third parties. | Repayment schedule for long-term debts contracted with third parties. | Repayment schedule for long-term debts contracted with third parties. | Repayment schedule for long-term debts contracted with third parties. | Repayment schedule for long-term debts contracted with third parties. | Repayment schedule for long-term debts contracted with third parties. | Repayment schedule for long-term debts contracted with third parties. | Repayment schedule for long-term debts contracted with third parties. | Repayment schedule for long-term debts contracted with third parties. |
|  |  |  | **Payments to be made in:** | **Payments to be made in:** | **Payments to be made in:** | **Payments to be made in:** | **Payments to be made in:** | **Payments to be made in:** |
| **As at March 31**<br> **($ Millions)** | **2025** | 2024 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2027 | 2028 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2029 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2030 | 2031 and<br> thereafter |
| &nbsp;&nbsp; Hydro One Limited | **17095** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16245 | 1250 | 425 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1175 | 0 | 1500 | 12745 |
| &nbsp;&nbsp; Ontario Power Generation Inc. | **10650** | 10063 | 1228 | 530 | 269 | 505 | 805 | 7313 |
| &nbsp;&nbsp; Ontario Cannabis Retail Corporation | **–** | 50 | – | – | – | – | – | – |
| &nbsp;&nbsp; **Total** | **27745** | **26358** | **2478** | **955** | **1444** | **505** | **2305** | **20058** |

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**Hydro One Limited** 

The principal business of Hydro One Limited is the transmission and distribution of electricity to customers within Ontario. Hydro One is Ontario's largest electricity transmission and distribution utility and is required to deliver electricity safely and reliably to approximately 1.5 million customers across Ontario. It is regulated by the Ontario Energy Board.

**iGaming Ontario** 

On April 4, 2022, iGaming Ontario (iGO) launched the new market for online gaming in the Province. iGO is responsible for conducting and managing the online gaming schemes in accordance with the *Criminal Code* (Canada) and the *Gaming Control Act, 1992*.

**Liquor Control Board of Ontario** 

The Liquor Control Board of Ontario (LCBO) regulates the purchase, sale and distribution of liquor for home consumption and liquor sales to licensed establishments through LCBO stores, Brewers Retail stores and winery retail stores throughout the Province. The LCBO buys wine and liquor products for resale to the public, tests all products sold and establishes prices for beer, wine and spirits.

**Ontario Cannabis Retail Corporation** 

The Ontario Cannabis Retail Corporation, operating as the Ontario Cannabis Store (OCS), is the provincial online retailer of recreational cannabis and the exclusive wholesaler of recreational cannabis to Ontario's authorized private retail stores.

**Ontario Lottery and Gaming Corporation** 

The Ontario Lottery and Gaming Corporation (OLG) conducts and manages gaming on behalf of the Province of Ontario, including: lottery, casinos, electronic bingo, and its internet gaming site, OLG.ca. Private service providers operate most OLG casinos. OLG continues to integrate horse racing into its gaming strategy, including the administration of ongoing funding.

**Ontario Power Generation Inc.** 

The principal business of OPG is the generation and sale of electricity. OPG is Ontario's largest power generator. OPG also wholly or jointly owns and operates or holds minority interests in renewable generating facilities in the United States, and sells into, and purchases from, interconnected electricity markets in other Canadian provinces and the northeast and mid-west regions of the United States.

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| **Consolidated Financial Statements, 2024–2025** | **115** |

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##### [**Table of Contents**](#toc)

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| **Province of Ontario**<br> **Schedule 10: Fees, Donations and Other Revenues from Broader Public Sector Organizations** | **Province of Ontario**<br> **Schedule 10: Fees, Donations and Other Revenues from Broader Public Sector Organizations** | **Province of Ontario**<br> **Schedule 10: Fees, Donations and Other Revenues from Broader Public Sector Organizations** | **Province of Ontario**<br> **Schedule 10: Fees, Donations and Other Revenues from Broader Public Sector Organizations** | **Province of Ontario**<br> **Schedule 10: Fees, Donations and Other Revenues from Broader Public Sector Organizations** | **Province of Ontario**<br> **Schedule 10: Fees, Donations and Other Revenues from Broader Public Sector Organizations** | **Province of Ontario**<br> **Schedule 10: Fees, Donations and Other Revenues from Broader Public Sector Organizations** | **Province of Ontario**<br> **Schedule 10: Fees, Donations and Other Revenues from Broader Public Sector Organizations** | **Province of Ontario**<br> **Schedule 10: Fees, Donations and Other Revenues from Broader Public Sector Organizations** | **Province of Ontario**<br> **Schedule 10: Fees, Donations and Other Revenues from Broader Public Sector Organizations** | **Province of Ontario**<br> **Schedule 10: Fees, Donations and Other Revenues from Broader Public Sector Organizations** |
| **Sectors** | **Hospitals** | **Hospitals** | **School Boards** | **School Boards** | **Colleges** | **Colleges** | **Children's Aid<br>Societies** | **Children's Aid<br>Societies** | **Total** | **Total** |
| **For the year ended March 31 <br> ($ Millions)** | **2025** | 2024 | **2025** | 2024 | **2025** | 2024 | **2025** | 2024 | **2025** | 2024 |
| &nbsp;&nbsp; Fees | **1671** | 1405 | **288** | 265 | **5497** | 5915 | **3** | 3 | **7459** | 7588 |
| &nbsp;&nbsp; Ancillary Services | **1033** | 736 | **587** | 509 | **336** | 323 | **2** | 3 | **1958** | 1571 |
| &nbsp;&nbsp; Grants and Donations for Research and Other Purposes | **1818** | 1389 | **10** | 6 | **228** | 194 | **38** | 32 | **2094** | 1621 |
| &nbsp;&nbsp; Sales and Rentals | **513** | 462 | **91** | 206 | **84** | 63 | **7** | 5 | **695** | 736 |
| &nbsp;&nbsp; Recognition of Deferred Capital Contributions | **475** | 421 | **71** | 65 | **76** | 75 | **1** | 1 | **623** | 562 |
| &nbsp;&nbsp; Miscellaneous | **1015** | 300 | **737** | 517 | **103** | 148 | **26** | 28 | **1881** | 993 |
| &nbsp;&nbsp; **Total** | **6525** | 4713 | **1784** | 1568 | **6324** | 6718 | **77** | 72 | **14710** | 13071 |

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| **Province of Ontario**<br> **Schedule 11: Prepaid Expenses and Other Non-Financial Assets** | **Province of Ontario**<br> **Schedule 11: Prepaid Expenses and Other Non-Financial Assets** | **Province of Ontario**<br> **Schedule 11: Prepaid Expenses and Other Non-Financial Assets** |
| **As at March 31 <br> ($ Millions)** | **2025** | 2024 |
| &nbsp;&nbsp; Prepaid Expenses | **1327** | 1124 |
| &nbsp;&nbsp; Inventory for Consumption | **723** | 731 |
| &nbsp;&nbsp; Other Non-Financial Assets | **174** | 174 |
| &nbsp;&nbsp; **Total Prepaid Expenses and Other Non-Financial Assets** | **2224** | 2029 |

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|:---|:---|
| **116** | **Consolidated Financial Statements, 2024–2025** |

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##### [**Table of Contents**](#toc)
**GUIDE TO THE PUBLIC ACCOUNTS** 

The Public Accounts of the Province of Ontario comprise this Annual Report and supplementary information.

The Annual Report includes a Financial Statement Discussion and Analysis, the Consolidated Financial Statements of the Province and other supporting schedules and disclosures.

**Financial Statement Discussion and Analysis** 

The first section of the Annual Report is the Financial Statement Discussion and Analysis section, which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Compares the Province's financial results to both the *2024 Budget* and the financial
results for the previous year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Shows trends in key financial items and indicators of financial condition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Sets out key potential risks to financial results and strategies used to manage them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Includes descriptions of various assets and liabilities on the statement of financial position; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Presents non-financial activities results and discusses important initiatives
related to enhancing transparency and accountability.

**Consolidated Financial Statements** 

The Consolidated Financial Statements show the Province's financial position at the end of the previous fiscal year, its financial activities during the reporting period and its financial position at the end of the reporting fiscal year. The statements are linked, and figures that appear in one statement may affect another.

The Province's financial statements are presented on a consolidated basis, meaning that the Province's statement of financial position and statement of operations reflect the combination of ministry results, as well as financial results for entities that are controlled by the government (see Note 1 to the Consolidated Financial Statements for more details). Therefore, the Province's reported revenues and expenses can be affected directly by the activities of ministries as well as the performance of controlled entities such as Government Business Enterprises and broader public sector organizations, i.e., hospitals, school boards, colleges and children's aid societies. In addition, the Province's results are also affected by transfer payments made to non-consolidated entities, such as municipalities and universities.

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| **Consolidated Financial Statements, 2024–2025** | **117** |

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The financial statements comprise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Consolidated Statement of Operations, which provides a summary of the Province's revenue for the period less its
expenses and shows whether the government incurred an operating deficit or surplus for the year. The results for the current year are presented along with the Budget Plan, and the financial results for the prior fiscal period. The annual
surplus/deficit has an impact on the Province's financial position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Consolidated Statement of Financial Position, which reports the Province's assets and liabilities and is also
known as the balance sheet. The Province's total liabilities include debt and other long-term financing. Financial assets include cash, portfolio investments, amounts due from others and investment in GBEs. The difference between total
liabilities and financial assets is the Province's net debt, which provides a measure of the Province's revenues that will be required to pay for the Province's past transactions. Non-financial assets, mainly tangible capital assets such as highways, bridges and buildings, are subtracted from net debt to arrive at the accumulated deficit/surplus. A deficit/surplus in the year
increases/decreases the accumulated deficit/surplus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Consolidated Statement of Change in Net Debt, which shows how the Province's net debt position changed during the
year. The main factors impacting net debt are the annual surplus/deficit and additions to tangible capital assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Consolidated Statement of Change in Accumulated Deficit/Surplus, which is a cumulative total of all the
Province's annual deficits and surpluses to date. It is mainly affected by the annual surplus/deficit in a year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Consolidated Statement of Cash Flow, which shows the sources and uses of cash and cash equivalents over the year. Two
major sources of cash are revenues and borrowings. Uses of cash include funding for operating costs, investments in capital assets and debt repayment. The statement is presented in what is referred to as the indirect method, meaning that it starts
with the annual surplus or deficit and reconciles that to the cash flow from operations by adding or subtracting non-cash items, such as amortization of tangible capital assets. It also shows cash used to
acquire tangible capital assets and portfolio investments, as well as cash generated from financing activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Consolidated Statement of Remeasurement Gains and Losses, which shows the change in values of financial assets and
financial liabilities arising from their remeasurement at current exchange rates and/or fair value.

When reading the Consolidated Financial Statements, it is essential to also read the accompanying notes and schedules, which summarize the Province's significant accounting policies and provide additional information on underlying financial activities, market value of investments, contractual obligations and risks.

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| **118** | **Consolidated Financial Statements, 2024–2025** |

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**Other Elements of the Annual Report** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● In the Statement of Responsibility, the government acknowledges its responsibility for the Consolidated Financial
Statements and the Financial Statement Discussion and Analysis. The Statement, which appears on page 2, outlines the accounting policies and practices used in preparing the financial statements and acknowledges the government's
responsibility for financial management systems and controls.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Auditor General's Report, which appears on page 45, expresses an opinion under the *Auditor General Act* as
to whether the statements fairly present the annual financial results and financial position of the government in accordance with Canadian public sector accounting standards.

**Supplementary Information** 

The Ministry Statements and Schedules contains ministry statements and detailed schedules of debt and other items. Individual ministry statements compare actual expenses to the amounts appropriated by the Legislative Assembly. Appropriations are made through the Estimates, Supplementary Estimates and the annual *Supply Act, 2024* (as modified by Treasury Board Orders), as well as other statutes and special warrants, if any. The ministry statements include amounts appropriated to fund certain provincial organizations, including hospitals, school boards, colleges and children's aid societies. The financial results of all provincial organizations included in the government reporting entity in accordance with public sector accounting standards are consolidated with those of the Province to produce the Consolidated Financial Statements in accordance with the accounting policies as described in Note 1 to the statements.

The Detailed Schedules of Payments contains the details of payments made by ministries to vendors (including sales tax) and transfer payment recipients that exceed certain thresholds, including: payments to suppliers of temporary help services; payments made directly to a supplier by the ministry for employee benefits; travel payments for employees; total payments for grants, subsidies or assistance to persons, businesses, non-commercial institutions and other government bodies; other payments to suppliers of goods and services; and statutory payments.

As of 2018–19, the Financial Statements of Government Organizations and Business Enterprises no longer form a part of the Public Accounts. Individual statements of significant provincial corporations, boards and commissions that are part of the government's reporting entity, as well as other miscellaneous financial statements are available via web link to the organization's website through ontario.ca/publicaccounts or upon request.

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|:---|:---|
| **Consolidated Financial Statements, 2024–2025** | **119** |

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**GLOSSARY** 

***Note:*** The definitions of the terms in the glossary are provided for clarification and assisting readers of the 2024–25 Annual Report. The descriptions do not affect or alter the meaning of any term under law. The glossary does not form part of the audited Consolidated Financial Statements.

**Accretion:** the increase in the carrying amount of a liability for asset retirement obligations due to the passage of time. Accretion expense is incurred when liability is discounted to its present value and consequently, the discount is unwound over time.

**Accumulated Amortization:** the total amortization that has been recorded over the life of an asset to date. The asset's total cost less the accumulated amortization gives the asset's net book value.

**Accumulated Deficit:** the difference between liabilities and assets. It represents the total of all past annual deficits minus all past annual surpluses, including prior-period adjustments.

**Amortized Cost:** the amount at which a financial asset or a financial liability is measured at initial recognition, minus principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount, and minus any reduction (directly or through the use of an allowance account) for impairment or uncollectibility.

**Appropriation:** an authority of the Legislative Assembly to pay money out of the Consolidated Revenue Fund or to incur a non-cash expense.

**Annual Report:** includes the Financial Statement Discussion and Analysis, the Consolidated Financial Statements of the Province of Ontario and other supporting schedules and disclosures.

**Asset Retirement Obligation(s) (ARO):** arises from a legal obligation associated with the retirement (permanent removal) of a tangible capital asset. These obligations are predictable, likely to occur and unavoidable.

**Broader Public Sector (BPS):** public hospitals, specialty psychiatric hospitals, school boards, colleges and children's aid societies. For financial statement purposes, universities and other organizations such as municipalities are excluded, because they do not meet the criteria of government organizations as recommended by the Public Sector Accounting Board of the Chartered Professional Accountants of Canada (CPA Canada).

**Canada Health Transfer (CHT):** a federal transfer provided to each province and territory in support of health care.

**Canada Social Transfer (CST):** a federal transfer provided to each province and territory in support of postsecondary education, social assistance and social services, including early childhood development, early learning and child care.

**Capital Gain:** the profit arising from the sale or transfer of capital assets or investments. For accounting purposes, it is the proceeds or market value received less the net book value of the capital asset or investment.

**Capital Lease:** a lease that, from the point of view of the lessee, transfers substantially all the benefits and risks incident to ownership of property to the lessee.

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| **120** | **Consolidated Financial Statements, 2024–2025** |

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**Combined Consideration (under P3):** a public sector entity's liability for the design, build, acquisition or betterment of infrastructure could result from a combination of the financial liability model and user-pay model. In such circumstances, the entity would recognize both a financial liability and a performance obligation.

**Consolidated Revenue Fund (CRF):** the aggregate of all public monies on deposit to the credit of the Ontario Minister of Finance or in the name of any agency of the Crown approved by the Lieutenant Governor in Council. Payments made from the CRF must be appropriated by a statute. See Appropriation for further details.

**Consolidation:** the inclusion of the financial results of government-controlled organizations in the Province's Consolidated Financial Statements.

**Consumer Price Index (CPI):** a broad measure of the cost of living. Through the monthly CPI, Statistics Canada tracks the retail price of a representative shopping basket of goods and services from an average household's expenditure: food, housing, transportation, furniture, clothing and recreation. The percentage of the total basket that any item occupies is termed the "weight" and reflects typical consumer spending patterns. Since people tend to spend more on food than clothing, changes in the price of food have a bigger impact on the index than, for example, changes in the price of clothing and footwear.

**Contingency Fund:** an amount of expense that is approved by the Legislative Assembly at the beginning of the year to cover higher spending due to unforeseen events. This approved spending limit is allocated during the year to ministries for their programs and activities. The actual costs incurred are charged to the respective programs and activities and not to the contingency fund. Therefore, the contingency fund as at the end of the Province's fiscal year is nil. See Reserve for further details.

**Contingent Liabilities:** possible obligations that may result in the future sacrifice of economic benefits arising from existing conditions or situations involving uncertainty, which will ultimately be resolved when one or more future events not wholly within the government's control occur or fail to occur. Resolution of the uncertainty will confirm the incurrence or non-incurrence of a liability.

**Contractual Obligations:** obligations of a government to others that will become liabilities when the terms of any contract or agreement, which the government had entered into, are met.

**Debenture:** a debt instrument where the issuer promises to pay interest and repay the principal by the maturity date. It is unsecured, meaning there is no lien on any specific asset.

**Debt:** an obligation resulting from the borrowing of money.

**Deferred Capital Contribution:** the unamortized portion of tangible capital assets or liabilities to construct or acquire tangible capital assets from specific funding received from other levels of government or third parties. Deferred capital contribution is recorded in revenue over the estimated useful life of the underlying tangible capital assets once constructed or acquired by the Province.

**Deferred Revenue:** unspent externally restricted grants from other levels of government and third parties for operating activities. Deferred revenues are recorded into revenue in the period in which the amount received is used for the purposes specified.

**Deficit:** the amount by which government expenses exceed revenues in any given year. On a forecast basis, a reserve may be included.

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| **Consolidated Financial Statements, 2024–2025** | **121** |

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**Derecognition:** the removal of previously recognized financial assets or financial liabilities from a government's statement of financial position.

**Derivatives:** financial contracts that derive their value from other underlying instruments. The Province uses derivatives, including swaps, forward foreign exchange contracts, forward rate agreements, futures and options to hedge and minimize interest costs.

**Effective Interest Method:** a method used to calculate the amortized cost of a financial asset or financial liability (or group of financial assets or financial liabilities) and to allocate interest income or interest expense over the relevant period.

**Exchange transactions:** transactions where goods or services are provided to a payor for consideration. These transactions include performance obligations arising directly from a payment or promise of consideration by a payor.

**Expected Average Remaining Service Life:** total number of years of future services expected to be rendered by that group of employees divided by the number of employees in the group.

**Fair Value:** the price that would be agreed upon in an arm's length transaction and in an open market between knowledgeable, willing parties who are under no compulsion to act. It is not the effect of a forced or liquidation sale.

**Financial Assets:** assets that could be used to discharge existing liabilities or finance future operations and are not for consumption in the normal course of operations. Financial assets include cash; an asset that is convertible to cash; a contractual right to receive cash or another financial asset from another party; portfolio investment; a financial claim on an outside organization or individual; and inventory for sale.

**Financial Instrument:** liquid asset, equity security in an entity or a contract that gives rise to a financial asset of one contracting party and a financial liability or equity instrument of the other contracting party. 

**Financial Liability Model (under P3):** a type of public private partnership arrangement where the private sector partner designs, builds, finances, operates, and/or maintains infrastructure in exchange for a contractual right to receive cash or other financial assets. A liability resulting from this model is a financial liability.

**Fiscal Plan:** an outline of the government's consolidated revenue and expense plan for the upcoming fiscal year and the medium term, including information on the projected surplus/deficit. The plan is formally presented in the Budget, which the government presents in the spring of each year and is updated, as required, during the year. The fiscal plan numbers can be different from the expenditures outlined in the Estimates.

**Fiscal Year:** the Province of Ontario's fiscal year runs from April 1 of a year to March 31 of the following year. 

**Floating Rate Notes (FRNs):** debt instruments that bear a variable rate of interest. 

**Forward Contract:** a contract that obligates one party to buy, and another party to sell, a specified amount of a particular asset at a specified price, on a given date in the future.

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**Forward Rate Agreement:** a forward contract that specifies the rate of interest, usually short term, to be paid or received on an obligation beginning at a future start date.

**Fund:** fiscal and accounting entity segregated for the purpose of carrying on specific activities, or attaining certain objectives in accordance with special regulations, restrictions or limitations.

**Futures:** an exchange-traded contract that confers an obligation to buy or sell a physical or financial commodity at a specified price and amount on a future date.

**Government Business Enterprise:** government organizations that: i) are separate legal entities with the power to contract in their own name and that can sue and be sued; ii) have the financial and operating authority to carry on a business; iii) have as their principal activity and source of revenue the selling of goods and services to individuals and non-government organizations; and iv) are able to maintain their operations and meet obligations from revenues generated outside the government reporting entity.

**Gross Domestic Product (GDP):** the total unduplicated value of the goods and services produced in the economy of a country or region during a given period, such as a quarter or a year. Gross domestic product can be measured three ways: as total income earned in current production, as total final expenditures or as total net value added in current production.

**Hedging:** a strategy to minimize the risk of loss on an asset (or a liability) from market fluctuations such as interest rate or foreign exchange rate changes. This is accomplished by entering into offsetting commitments with the expectation that a future change in the value of the hedging instrument will offset the change in the value of the asset (or the liability).

**Indemnity:** an agreement whereby one party agrees to compensate another party for any loss suffered by that party. The Province can either seek or provide indemnification.

**Infrastructure:** the facilities, systems and equipment required to provide public services and support private-sector economic activity including network infrastructure (e.g., roads, bridges, water and wastewater systems, large information technology systems), buildings (e.g., hospitals, schools, courts) and machinery and equipment (e.g., medical equipment, research equipment).

**Legal Obligation:** a clear duty or responsibility to another party under statute or contracts and agreements.

**Liquid Reserve:** comprises cash and short-term investments managed before consolidation with other government entities. It includes cash in the Province's bank accounts, money market securities and long-term bonds which have not been lent out through a sale and re-purchase agreement, adjusted for net pledged collateral.

**Loan Guarantee:** an agreement to pay all or part of the amount due on a debt obligation in the event of default by the borrower.

**Net Book Value of Tangible Capital Assets:** historical cost of tangible capital assets less both the accumulated amortization and the amount of any write-downs.

**Net Debt:** the difference between the Province's total liabilities and financial assets. It represents the Province's future revenue requirements to pay for past transactions and events.

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**Nominal:** an amount expressed in dollar terms without adjusting for changes in prices due to inflation or deflation. It is not a good basis for comparing values of GDP in different years, for which a "real" value expressed in constant dollars (i.e., adjusted for price changes) is needed. See Real GDP for further details.

**Non-Exchange Transactions:** transactions or events where there is no direct transfer of goods or services to a payor.

**Non-Financial Assets:** assets that normally do not generate cash capable of being used to repay existing debts. The non-financial assets of the Province are tangible capital assets, prepaid expenses and inventories of supplies for consumption.

**Non-Tax Revenue:** revenue received by the government from external sources. This also includes revenues from the sale of goods and services, fines and penalties associated with the enforcement of government regulations and laws; fees and licences; royalties; profits from a self-sustaining Crown agency; and asset sales.

**Ontario Disability Support Program (ODSP):** a program designed to meet the unique needs of people with disabilities who are in financial need, or who want and are able to work and need support. The people of the Province aged 65 years or older who are ineligible for Old Age Security may also qualify for ODSP supports if they are in financial need.

**Option:** a contract that confers the right, but not the obligation, to buy or sell a specific amount of a commodity, currency or security at a specific price, on a certain future date.

**Pension Actuarial Accounting Valuation:** a valuation performed by an actuary to measure the pension benefit obligations at the end of the period or a point in time. The valuation attributes the cost of the pension benefit obligations to the period the related services are rendered by the members.

**Pension Statutory Actuarial Funding Valuation:** a valuation performed by an actuary to determine whether a pension plan has sufficient money to pay for its obligations when they become due. The valuation determines the contributions required to meet the pension benefit obligations.

**Performance Obligations:** enforceable promises to provide specific goods or services to a specific payor.

**Portfolio Investments:** investments in organizations that do not form part of the government reporting entity.

**Present Value:** the current worth of one or more future cash payments, determined by discounting the payments using a given rate of interest.

**Program Expense:** total expense excluding interest and other debt servicing charges. 

**Public Accounts:** the Consolidated Financial Statements of Ontario along with supporting statements and schedules as required by the *Financial Administration Act*.

**Public Private Partnership (P3):** an alternative finance and procurement model available to public sector entities, where the public sector entity procures infrastructure using a private sector partner. The private sector partners are committed to design, build and finance the infrastructure assets. Some P3 arrangements may also require the private sector partner to operate and/or maintain the assets over the term of the P3 contract.

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**Purchased Intangible Assets:** non-financial assets lacking physical substance that are purchased through an arm's-length exchange transaction.

**Real GDP:** gross domestic product measured to exclude the impact of changing prices. 

**Recognition:** the process of including an item in the financial statements of an entity.

**Reserve:** an amount included in the fiscal plan to protect the plan against unforeseen adverse changes in the economic outlook, or in the provincial revenue and expense. Actual costs incurred by the ministry, which pertain to the reserve, are recorded as expenses of that ministry. See Contingency Fund for further details.

**Segment:** a distinguishable activity or group of activities of a government for which it is appropriate to separately report financial information to help users of the financial statements identify the resources allocated to support the major activities of the government.

**Sinking Fund Debenture:** a debenture that is secured by periodic payments into a fund established to retire long-term debt.

**Straight-Line Basis of Amortization:** a method whereby the annual amortization expense is computed by dividing i) the historical cost of the asset by ii) the number of years the asset is expected to be used.

**Surplus:** the amount by which revenues exceed government expenses in any given year. On a forecast basis, a reserve may be included.

**Tangible Capital Assets:** physical assets including land, buildings, transportation infrastructure, vehicles, leased assets, machinery, furniture, equipment and information technology infrastructure and systems, and construction in progress.

**Total Debt:** the Province's total borrowings outstanding.

**Total Expense:** the sum of program expense and interest and other debt servicing charges expense.

**Transaction Price:** the amount of consideration expected to receive in exchange for promised goods or services to a payor.

**Transfer Payments:** grants to individuals, organizations or other levels of government for which the government making the transfer does not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Receive any goods or services directly in return, as would occur in a purchase or sale transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Expect to be repaid, as would be expected in a loan; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Expect a financial return, as would be expected in an investment.

**Treasury Bills:** short-term debt instrument issued by governments on a discount basis.

**Unrealized Gain or Loss:** an increase or decrease in the fair value of an asset accruing to the holder. Once the asset is disposed of or written off, the gain or loss is realized.

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| **Consolidated Financial Statements, 2024–2025** | **125** |

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**User-Pay Model (under P3):** a type of public private partnership arrangement where the private sector partner designs, builds, finances, operates, and/or maintains infrastructure in exchange for rights to charge end users. the public sector partner provides rights to earn revenue from third-party users or grants access to another revenue-generating asset. A liability resulting from this model is a performance obligation.

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**SOURCES OF ADDITIONAL INFORMATION** 

***Ontario Budget*, *Ontario Economic Outlook and Fiscal Review* and *Quarterly Finances*** 

The Province presents a Budget each year, usually in the early spring. This document outlines expected expense and revenue for the upcoming fiscal year.

The *Ontario Economic Outlook and Fiscal Review* is a mid-year fiscal update to the expense and revenue projections of the government.

The *Quarterly Finances* is a report on the performance of the government's Budget for the fiscal year. It covers developments during a quarter and provides a revised outlook for the remainder of the year.

For an electronic copy of the *Ontario Budget,* the *Ontario Economic Outlook and Fiscal Review* or the *Ontario Quarterly Finances*, visit the Ontario Ministry of Finance website at: https://www.ontario.ca/page/ministry-finance

**Estimates of the Province of Ontario** 

The government's spending Estimates for the fiscal year commencing April 1 are presented to members of the Legislative Assembly following the presentation of the *Ontario Budget* by the Minister of Finance. The Estimates outline the spending plans of each ministry and are submitted for approval to the Legislative Assembly according to the *Supply Act, 2024*. For electronic access, go to: https://www.ontario.ca/page/expenditure-estimates

**Ontario Finances** 

For electronic access, go to: https://www.ontario.ca/page/ontario-quarterly-finances

**Ontario Economic Accounts** 

This quarterly report contains data on Ontario's economic activity. For electronic access, go to: https://www.ontario.ca/page/ontario-economic-accounts

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![LOGO](g941512g22a25.jpg)

Please address your comments on this report to: The Honourable Caroline Mulroney President of the Treasury Board, Room 4320, Fourth Floor, Whitney Block, 99 Wellesley Street West, Toronto, Ontario M7A 1W3 You can also send your comments to the Minister by electronic mail to: infotbs@ontario.ca <br>To access this document online, visit Ontario.ca/publicaccounts© King's Printer for Ontario, 2025 \| ISSN 0381-2375 (Print) \| ISSN 1913-5556 (Online)