Meech Lake, Quebec, December 16, 2013
Archived - Record High and Growing Transfers Offer Solid Foundation for Return to Budget Balance
Archived information is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please contact us to request a format other than those available.
The Honourable Jim Flaherty, Minister of Finance, today presented his provincial and territorial counterparts with details on 2014–15 transfer amounts at their meeting at Meech Lake, Quebec.
“With the legislative renewal of major federal transfers now complete, provinces and territories are well positioned to meet our shared commitment of returning to budget balance in the medium term,” said Minister Flaherty. “Returning to budget balance will lower interest payments, foster an environment that encourages more investment, help secure our economic recovery and ultimately allow Canada’s governments to invest more in priorities that support jobs, growth and long-term prosperity.”
Major federal transfers will reach a record high of almost $65 billion in 2014–15, an increase of over 50% since 2006 and a $2.9 billion increase from 2013–14. Transfers under the Canada Health Transfer (CHT) and Canada Social Transfer (CST) will also both reach all-time record levels in 2014–15 at $32.1 billion (a 58 per cent increase in the CHT since 2006) and $12.6 billion (a 50 per cent increase in the CST since 2006), respectively.
At their meeting, Finance Ministers also reviewed the work done by officials on a potential modest expansion of the Canada Pension Plan (CPP). “As I have stated throughout this review process, we must remain mindful of the costs any such expansion would bring to employers and employees and its impact on the economy, particularly as the global economy still struggles to gain traction in the ongoing transition to sustained, private-sector-driven growth,” said Minister Flaherty.
“In uncertain times like these, I believe Canada’s Finance Ministers have a responsibility to, above all, protect the programs and services that Canadians rely on by ensuring they are effective and affordable, today and for the future,” Minister Flaherty said. “I look forward to continuing to work cooperatively and constructively with the provinces and territories as together we secure Canada’s long-term prosperity.”
For further information, media may contact:
Office of the Minister of Finance
Department of Finance
|Newfoundland and Labrador||673||676|
|Prince Edward Island||518||542|
|1 Totals may not add due to rounding.
2 Figures for 2013–14 reflect the second estimate for the CHT and CST and transfer protection payments totaling $56 million provided to New Brunswick and Manitoba.
3 Figures for 2014–15 include CHT protection payments to Newfoundland and Labrador and Nunavut.