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NEW FEDERAL INVESTMENTS TO ACCOMPANY THE AGREEMENTS ON
HEALTH RENEWAL AND EARLY CHILDHOOD DEVELOPMENTS
OTTAWA, ONTARIO, September 11, 2000 – The Prime Minister today
announced $23.4 billion of new federal investments over five years to
support agreements by First Ministers on Health Renewal and Early Childhood
Development (ECD).
To ensure stable, predictable and growing funding in the Canada
Health and Social Transfer (CHST), the federal government will legislate
over $21 billion of additional cash over the next five years. This includes a
new $2.2 billion investment for ECD.
This will bring the total cash transfer to the provinces and
territories through the CHST to $18.3 billion in 2001-02, $19.1 billion in
2002-03, rising to $21.0 billion in 2005-06. In that year, CHST cash will be 35
per cent above the current level of $15.5 billion.
Combined with the growth in the value of the CHST tax points to
$18.8 billion, the federal transfer to provinces and territories, which is
for health, post-secondary education and social services, will grow to about $40
billion by 2005-06.
To ensure further predictability, by the end of 2003-04, the
federal government will establish the CHST cash transfers for years 2006-07 and
2007-08.
To accelerate and broaden health renewal, the Government of
Canada will also be investing in three targetted areas reflecting agreed
priorities:
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It will invest a total of $1 billion in 2000-01 and 2001-02,
through transfers to the provinces and territories for new medical
equipment, $500 million of which will be available immediately to enable the
acquisition of necessary diagnostic and treatment equipment;
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It will invest $500 million immediately in an independent
corporation mandated to accelerate the development and adoption of modern
systems of information technology, such as electronic patient records, so as
to provide better health care.
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First Ministers raised the issue of the Equalization. The
Minister of Finance will examine this issue further after consultation with
provincial Ministers of Finance. While final revisions for Equalization
purposes for fiscal year 1999-2000 likely will not be known until October
2002, the Prime Minister agreed to take the necessary steps to ensure that
no ceiling will apply to the 1999-2000 fiscal year. Thereafter, the
established Equalization formula will apply, which allows the program to
grow up to the rate of growth of GDP.
Funding Commitments of the Government of Canada to
Accompany the Agreements on Health Renewal and Early Childhood Development
(billions of dollars)
| |
Current
Legislation |
Beyond
Current Legislation |
Total
New Cash |
| 2000-01 |
2001-02 |
2002-03 |
2003-04 |
2004-05 |
2005-06 |
CANADA HEALTH &
SOCIAL TRANSFER* |
| Current cash1 |
15.5 |
15.5 |
15.5 |
15.5 |
15.5 2 |
15.5 2 |
-- |
| General cash increase |
|
2.5 |
3.2 |
3.8 |
4.4 |
5 |
18.9 |
| Early Childhood Development |
|
0.3 |
0.4 |
0.5 |
0.5 |
0.5 |
2.2 |
| TOTAL CHST CASH |
15.5 |
18.3 |
19.1 |
19.8 |
20.4 |
21 |
-- |
| Medical Equipment Fund |
0.5 |
0.5 |
|
|
|
|
1 |
| Health Information Technology |
0.5 |
|
|
|
|
|
0.5 |
| Health Transition Fund for Primary Care |
|
0.2 |
0.2 |
0.2 |
0.2 |
|
0.8 |
| TOTAL CASH 3 |
16.5 |
19 |
19.3 |
20 |
20.6 |
21 |
-- |
| CHST tax point transfers |
15.3 |
15.8 |
16.5 |
17.2 |
18 |
18.8 |
|
| Total CHST Entitlements |
30.8 |
34.1 |
35.6 |
37 |
38.4 |
39.8 |
|
| |
|
|
|
|
|
|
|
| TOTAL FUNDING |
31.8 |
34.8 |
35.8 |
37.2 |
38.6 |
39.8 |
-- |
| |
|
|
|
|
|
|
23.4 |
* The CHST supports provincial/territorial programs in the areas of health,
post-secondary education and social services.
1 Current cash includes both CHST
supplements of Budget 1999 ($3.5 billion) and Budget 2000 ($2.5 billlion).
2 Existing legislation extends to
2003-04. $15.5 billion is base cash for subsequent years.
3
Sum of total CHST cash transfers and funding for non-CHST
measures.
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