The Facts, Major Federal Transfers to the Provinces and Territories

Federal Transfers

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

  • 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.