The 2000 Budget: Reality Check on Major Federal Transfers to
the Provinces and Territories
February 28, 2000
When it comes to responding to the challenges facing our health care and
post-secondary education systems, Canadians don't want blame or finger pointing,
they want cooperation and results.
Our government is committed to cooperation and we are delivering results.
As the table below shows, major federal transfers to the provinces and
territories - cash, tax points and equalization - are higher this fiscal year
than they were when we first took office.
(Major Transfers in millions of dollars)
| |
Total CHST |
CHST Cash |
CHST Tax Points
|
Equalization |
Territorial Formula Financing |
Total** |
| 1993-1994 |
28991 |
18810 |
10181 |
8063 |
1153 |
37433 |
| 1994-1995 |
29371 |
18720 |
10651 |
8607 |
1172 |
38346 |
| 1995-1996 |
29885 |
18479 |
11406 |
8759 |
1187 |
38995 |
| 1996-1997 |
26900 |
14742 |
12158 |
8959 |
1178 |
36116 |
| 1997-1998 |
25717 |
12500 |
13217 |
9602 |
1190 |
35494 |
| 1998-1999 |
26251 |
12500 |
13751 |
9614 |
1182 |
36021 |
| 1999-2000 |
28782 |
14500 |
14282 |
9501 |
1299 |
38540 |
Budget 2000 Measures
Budget 2000 builds on our record by laying out our 4th consecutive increase
in CHST cash transfers - $2.5 billion over four years to help the provinces and
territories to address pressing health care and post-secondary education
concerns. The transfer will also have the flexibility built in to allow them to
draw upon it sooner - should they choose to do so.
In the 1999 Budget, alone, we transferred an additional $11.5 billion over 5
years to the provinces and territories for health care - the largest single
investment in our government's history.
Combined with last year's increase, the Budget 2000 increase means that the
cash component of the CHST will reach $15.5 billion in each of the next four
years -a 25% increase in just two years.
And the total value of the CHST- cash and tax points - will reach an all-time
high of $31 billion in 2000-01.
In addition to these CHST resources, Equalization for the less prosperous
provinces will be $500 million higher than forecast in the 1999 Budget, and
transfers to the Territories will be $100 million higher.
As the nation's finances continue to improve, we will consider additional
funding increases.
The Government of Canada: Committed to Quality Public Health Care
Our government is steadfastly committed to upholding the five principles of
the Canada Health Act -- universality, comprehensiveness, accessibility,
portability and public administration.
We are committed to continuing to work with our provincial partners -
creatively within their respective jurisdictions - to reform and renew Canada's
health care system.
And it was in just such a cooperative spirit that the Minister of Health
invited his provincial and territorial colleagues to meet and discuss priority
areas like:
Changing the way primary health care services are delivered to improve access;
Strengthening home and community care; and,
Intensifying our collaborative work on accountability to Canadians.
But as the Minister has said, these proposals and the discussions to come are
not just about spending more money alone, they are also about finding ways to
spend our health care dollars more wisely.
The 2000 Budget
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