Canada Social Transfer

What is the CST?

• The CST is a federal block transfer to provinces and territories in support of post-secondary education, social assistance and social services, and early childhood development and early learning and childcare.
• The CST is calculated on an equal per capita cash basis to reflect the Government’s commitment to ensure that general-purpose transfers provide equal support for all Canadians. Prior to that, the CST was calculated on an equal per capita basis combining the value of both tax and cash transfers.
• The CST is also the vehicle through which the Government of Canada provides support to provinces and territories in relation to agreements reached on early childhood development (2000) and early learning and child care (2003) programs and services.

Continued Federal Support for Social Programs

• The CST cash transfer, including transition protection payments, will be about $11.2 billion in 2010–11.
• The CST base increased by $687 million in 2007–08 to support the move to equal per capita cash. In 2008–09, the CST will increase by $800 million for post-secondary education and an additional $250 million to support the development of child care spaces.
• CST cash levels are set in legislation up to 2013–14 and will grow by 3 per cent annually as a result of an automatic escalator, effective 2009–10.
• Provinces and territories also receive CST support through a tax point transfer (see Tax Transfers). CST tax transfers amount to $8 billion in 2010–11 and will continue to grow in line with the economy.
• The CST supports the Government’s commitment to prohibit minimum residency requirements for social assistance.
• The Government of Canada has increased the transparency of its transfer support through the CST by providing information on the notional allocation of federal support among priority areas, based on provincial-territorial spending patterns and existing child care agreements as well as further investments from recent budgets.

- Major Federal Transfers -