On Dec. 21, the federal government announced a “record $87.6 billion” for major transfer funding will be sent to the provinces and territories in 2022-23.
According to the announcement from the Department of Finance, this “represents an increase of over $3.7 billion from 2021-22. All provinces and territories will receive a year-over-year increase in total major transfer amounts.”
Finance Minister Chrystia Freeland
“Eight out of every ten dollars provided to fight COVID-19 and support Canadians through the pandemic came from the federal government. This year, the federal government is once again increasing major transfers to provinces and territories to historic highs. It is incumbent on all orders of government to do what is necessary to deliver the support Canadians need to get through this pandemic,” she added.
The government’s release noted that “as a result of strong economic growth, the Canada Health Transfer will grow by 4.8 per cent this year.”
“This funding will further help provinces and territories provide their residents with the health services they need. Major transfers also include the Canada Social Transfer, Equalization and Territorial Formula Financing,” the release added.
With regard to protection from COVID-19, the release noted that the “Economic and Fiscal Update proposes investments of $1.7 billion to increase access to rapid testing supplies, $2 billion to improve access to the therapeutics and treatments to reduce hospitalizations, and ensure that there are enough booster shots and pediatric vaccines for all eligible Canadians.”
“The federal government is committed to spurring economic growth and new jobs and has committed $30 billion over the next five years to build a Canada-wide high-quality early learning and child care system. This investment will save young families thousands of dollars a year, help parents return to the workforce, and is estimated to raise real GDP by as much as 1.2 per cent over the next two decades. To date, the government has reached agreements with eleven provinces and territories,” the release added.
According to the release, federal income and business support measures have “protected provincial and territorial revenues, with revenues higher due to federal investments to stabilize incomes, protect jobs, and prevent business closures, therefore protecting the tax base and limiting deficits and debt.”
“Since the start of the pandemic,” the release also noted, the federal government has “invested nearly $20 billion through direct transfers like the Safe Restart Agreement, $2 billion through the Safe Return to Class Fund, $4.5 billion through top-ups to the Canada Health Transfer, and $1 billion for vaccine rollouts.”
“The government also invested $2.2 billion to top up for municipalities through the Canada Community-Building Fund in 2020-21, along with other direct transfers to the provinces and territories,” the release added.
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