Whitehorse, December 18, 2009
2009-119

Government of Canada Support to Provinces and Territories at an All-Time High

The Honourable Jim Flaherty, Minister of Finance, announced today that total transfers to provinces and territories will increase by $2.4 billion in 2010-11, bringing total federal support to $54.4 billion, the highest level ever.

“Our Government is pleased to be providing unprecedented and growing federal transfer support that will help to provide the services, programs and assistance that Canadians rely upon, particularly in these difficult economic times,” said Minister Flaherty. “Transfers in support of health care and social services are a top priority for our Government as we transition our economy through the current challenging economic times.”  

Equalization payments to provinces for 2010-11 will total $14.4 billion, an increase of $187 million. The overall program is growing in line with the economy, with provincial amounts reflecting changes in the ability of provinces to raise revenues.

The Canada Health Transfer will grow to $25.4 billion, an increase of $1.4 billion or 6 per cent from 2009-10. The Canada Social Transfer for 2010-11 will reach $11.2 billion, which is an increase of $322 million or 3 per cent over 2009-10.

In addition to the significant federal support through these transfers, the Minister announced $525 million of support to provinces in recognition of the short‑term challenges they face as they emerge from the recession. This investment will ensure that no province receives less in 2010-11 than in 2009-10 through the combined Equalization, Canada Health Transfer and Canada Social Transfer programs. 

This one-time protection complements the extraordinary measures contained in Canada’s Economic Action Plan, which are providing timely and targeted stimulus to the Canadian economy when it is needed most. The Minister committed to continue to work with his colleagues to ensure that the Action Plan’s two-year stimulus investments are completed on time.

The Minister also provided payment amounts for 2010-11 to the three territories. Territorial Formula Financing will grow to $2.7 billion, up $166 million over 2009-10.

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For further information, media may contact:

Annette Robertson
Press Secretary
Office of the Minister of Finance
613-996-7861

Jack Aubry
Media Relations
Department of Finance
613-996-8080

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