Funding for the Territories

The territories have a special funding program in order to reflect the higher costs of providing public services in the north, the rapid growth in population in this part of the country, the less developed economic bases from which to raise revenues, and their vast land mass and small population. It also protects territories against any serious downturn in their own revenues.

Territorial Formula Financing (TFF) is not only the principal source of revenue for territorial governments, but it is designed to reflect the aspirations of territorial governments for greater autonomy, responsibility, and accountability to their residents. It includes an incentive to promote economic activity, and to encourage greater territorial self-sufficiency.

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New Funding Arrangements

A new funding arrangement with the Yukon should be in place shortly. In 1999-2000, the federal government will transfer close to $1.3 billion to the three territorial governments: approximately $500 million to Nunavut, $490 million to the Northwest Territories, and $300 million to the Yukon. Over the next five years, funds are projected to total approximately $6.9 billion, ensuring that the territorial governments have the revenue they need to provide health and social services to northern Canadians. Territories will also benefit from increases in the Canada Health and Social Transfer.

Total Entitlements (Tax + Cash)

* The Canada Health and Social Transfer (CHST) came into effect on Aptil 1, 1996. Established Programs Financing (EPF) and Canada Assistance Plan (CAP) were predecessors of the CHST

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