Budget 2003

Health Care and International Affairs

February 18, 2003
Ottawa, Ontario

Following through on the 2003 Health Care Accord agreed to by the Prime Minister and Canada’s provincial premiers earlier this month, this budget invests $34.8 billion over the next five years to renew Canada’s health care system.

This investment will improve the quality and accessibility of health care services and ensure the sustainability of this number one priority of Canadians today and in the future.

The Health Accord is based on a plan that recognizes that to renew our health care system we need new approaches and greater accountability.

Increased federal funding through the Health Accord will support:

1. a five-year, $16 billion Health Reform Fund for the provinces and territories to target primary health care, home care, and catastrophic drug coverage;
2. $9.5 billion in increased cash transfers to the provinces and territories over the next five years;
3. an immediate investment of $2.5 billion through a Canada Health and Social Transfer to relieve existing pressures on the health care system;
4. a $1.5 billion over three years for a diagnostic/medical equipment fund to improve access to publicly funded diagnostic services;
5. $600 million to accelerate the development of secure electronic patient records;
6. $500 million for research hospitals through the Canada Foundation for Innovation; and
7. $1.3 billion over five years to support health programming for First Nations including capital development, nursing programs, and an immunization strategy on reserves.

Budget 2003 also provides a new Employment Insurance Benefit for a six-week compassionate care leave for people who take time off from their jobs to care for gravely ill or dying family members.

We will also work to put in place national strategies for patient safety, technology assessment and immunization; and sales tax measures supporting health care reform.

We are also creating a new Canada Health Transfer by April 1, 2004. This will enhance transparency and accountability and provide Canadians with a more accurate picture of federal contributions to health care and other key social sectors. Provinces and territories will retain their flexibility to decide where and how they will invest federal resources in each sector.

International Affairs

In today’s uncertain world, Canada must adapt to new realities and new demands in our efforts to contribute to global peace and development.

Budget 2003 increases support for Canada’s armed forces by $800 million per year. There will be an immediate one-year allocation of $270 million to address urgent needs.

We are increasing our international assistance to $1.4 billion over this and the next two fiscal years – an increase of 8 per cent per year – with a view to doubling our level of assistance by 2010.

To enhance business with our biggest trade partner, we are investing new funds to bolster Canada’s representation and trade promotion activities in the United States.

Budget 2003 provides an additional $75 million over the next two years for the Security Contingency Reserve to help the Government respond to unforeseen security needs, including border security.