The federal government has restored fiscal balance since 2006 through record and growing transfer support to the provinces and territories.
- Federal support has reached historic levels ($65B) – and will continue to grow.
- Total federal support for health, education and social services has increased over 55% since we formed Government.
- We’ve also made changes to ensure that transfers grow in the line with the economy – allowing the program to remain affordable and sustainable.
Canada Health Transfer
- Our Conservative government took action to restore balance to federal transfers.
- As announced in Budget 2007, and beginning in 2014-15, provincial and territorial health transfers will be allocated on an equal per capita cash basis.
- This change, which was also done for the Canada Social Transfer, will provide like treatment for all Canadians, regardless of where they live.
- As our Government confirmed in Budget 2012, no province or territory will receive less in health transfers than they received in 2013-14.
Transfers to Ontario
Ontario will receive almost $19.2B in federal transfers this year – an increase of 76% from under the old Liberal government, including:
- almost $2B through Equalization
- over $12.3B through the Canada Health Transfer, an increase of over $4.6B (or 60%) since 2006
- over $4.8B through the Canada Social Transfer, an increase of almost $1.7B (or 53%) since 2006
- Equalization is a program to support “have not” provinces, whose fiscal capacity is below the national average.
- Since Ontario first qualified in 2009, our Government has provided nearly $10B in Equalization payments to Ontario.
- We’re also helping Ontario to again become a “have” province by making key investments in Ontario’s auto sector, manufacturing sector, and more.
- Equalization is determined through a standard, independent formula that is set in legislation. That formula has not changed, and Ontario has full knowledge of how it works.
- Ontario’s Equalization entitlement declined by approximately $1.2B for 2014-15.
- The decrease in Ontario’s entitlement reflects the province’s economic strength relative to other provinces. For example, Ontario’s share of the corporate tax base has grown by almost 8 percent since the 2009 recession, which is a major rebound.
- This is exactly how Equalization is supposed to work.
Total Transfer Protection
- Total Transfer Protection was introduced in 2010-11 to protect provinces from any decline in their total transfers.
- This program, which was tied to the recession, was always meant to be temporary – Ontario, like all the provinces, knew this.
- As 2014-15 is the first year in which data from the recession is no longer reflected in the calculation of major transfer amounts, the program naturally ended.