Meech Lake, Quebec, December 17, 2012
Archived - With Transfers Growing from Record Highs, Finance Ministers Positioned to Focus on Jobs, Growth and Long-Term Prosperity
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- Transfer Payments to Provinces and Territories for 2013–14
- Backgrounder on Equalization and Territorial Formula Financing Renewal
The Honourable Jim Flaherty, Minister of Finance, today presented Provincial and Territorial Finance Ministers with details on transfer amounts for 2013-14, as well as on technical improvements to the Equalization and Territorial Formula Financing (TFF) programs in the context of the renewal of these programs’ enabling legislation, which expires on March 31, 2014.
“Equalization and Territorial Formula Financing, and indeed all major federal transfers to provinces and territories, will continue to grow from current record levels, at a sustainable and affordable rate,” said Minister Flaherty. “These transfers will total $62 billion in 2013-14, an increase of almost 50% since 2006.
“The renewal of Equalization and Territorial Formula Financing will not affect their overall growth, and will be limited to technical amendments. Given the current backdrop of global uncertainty, we will also be extending total transfer protection for the coming year to ensure that no province sees a decline in their total transfer amounts as compared to this year.”
The proposed changes to Equalization and TFF will ensure these programs are using the most up-to-date data, and employ consistent and accurate measures in the formulas that determine provincial and territorial entitlements.
As part of their meeting, Ministers agreed on the need to sustain sound fiscal policies in order to be prepared for current risks to the global economy. They also reviewed ways to ensure Canadians are saving enough for retirement, including discussions on the Canada Pension Plan and the implementation of the federal framework for Pooled Registered Pension Plans, which will provide a new, low-cost vehicle for retirement savings.
“Finance Ministers all have an important role to play in safeguarding the programs and services that Canadians rely on for the long term,” said Minister Flaherty. “With transfers growing predictably from record highs, provinces and territories are now ideally positioned to meet this challenge. Coming out of this meeting, I am confident that Canada’s Finance Ministers are aware of our respective challenges and responsibilities, and that we are going to meet these head on by continuing to work together decisively and constructively.”
For further information, media may contact:
Office of the Minister of Finance
Department of Finance