Federal government announces major transfer amounts for 2021-22
From: Department of Finance Canada
December 17, 2020 – Ottawa, Canada – Department of Finance Canada
Throughout the COVID-19 pandemic, the federal government has worked with all orders of government to protect Canadians’ health and safety and support workers and businesses. By working collaboratively, we are ensuring our economy is ready for a rapid, robust and resilient recovery once COVID-19 is under control. This has been a true Team Canada effort.
Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, announced the Government of Canada will provide a record $83.9 billion in transfer funding for provinces and territories in 2021-22. This represents an increase of over $2.2 billion from 2020-21. All provinces and territories are expected to see a year-over-year increase in total major transfer amounts. Major transfers include: the Canada Health Transfer (CHT); the Canada Social Transfer (CST); Equalization; and Territorial Formula Financing (TFF).
In addition to the amounts being provided through major transfers, the government will continue the extraordinary efforts to ensure Canadians stay safe and healthy while getting the support they need. To date, the federal government has invested over $322 billion to fight COVID-19 and support Canadians.
Building on the discussions during the First Minister’s meeting last week, federal, provincial, and territorial governments will continue to work together to strengthen health care for all Canadians.
“Throughout this pandemic we have worked collaboratively, as a united Team Canada, to ensure Canadians stay safe, healthy, and have the economic support they need. As we work together to fight the second wave and roll out vaccines on an unprecedented scale, the federal government will continue to be there for all Canadians and ensure our economy is ready for a strong and sustainable recovery.”
The Hon. Chrystia Freeland, Deputy Prime Minister and Minister of Finance
- Equalization and Territorial Formula Financing (TFF) address fiscal disparities amongst jurisdictions – Equalization for provinces, and TFF for the territories. Equalization ensures all provinces are able to provide their residents with public services that are reasonably comparable to those in other provinces, at reasonably comparable levels of taxation. TFF provides territorial governments with funding to support public services, in recognition of the higher cost of providing programs and services in the North.
- The Canada Health Transfer provides long-term predictable funding for health care and supports the principles of the Canada Health Act which are: universality; comprehensiveness; portability; accessibility; and, public administration. It is the federal government’s largest major transfer to provinces and territories.
- The Canada Social Transfer is a federal transfer to provinces and territories in support of: post-secondary education; social assistance and social services; and early childhood development and early learning and childcare.
- This year, on top of these major transfer payments, the government has provided provinces and territories with over $24 billion so they can safely restart their economies, increase testing and tracing, support municipalities, and protect Canadians’ health and safety.
Media may contact:
Deputy Prime Minister’s Office
Department of Finance Canada
E-mail: [email protected]