This presentation discuss the transfers for money from the have provinces to have not provinces. There are following funds: 1. CST 2. HST 3. Equalization 4 TFF The presentation will talk about the funding and include comments from the provinces.

1. FEDERAL GOVERNMENT
TRANSFERS TO PROVINCES
AND PROGRAM SPENDING –
ANALYSIS AND COMMENTARY
Author: Paul Young, CPA, CGA
Date: November 2016

3. HEALTHCARE TRANSFERS

4. TRUDEAU / TRANSFERS
 Federal and provincial health ministers emerged from a day of tense talks in Toronto still at
odds over the federal government's planned cut to the annual increase in federal funding for
health care.
 Next year the Canada Health Transfer, the amount of money the federal government gives the
provinces each year to pay for health care, will stop increasing by six per cent and instead will only
increase by three per cent.
 Quebec Health Minister Gaétan Barrette said the single "concrete" takeaway from the meeting is
that the federal government is cutting health-care funding and forcing the provinces and
territories to make tough choices.
 "For today we know there will be a cut of $60 billion of funding from the federal government over
the next 10 years," Barrette said.
 "That means all provinces and territories must make difficult choices because we are being asked
to do more with less. And on top of that we are being told what to do. So I don't think this is the
end of the story.
http://thechronicleherald.ca/canada/1407726-baloney-meter-is-the-federal-government-cutting-health-
transfers-to-provinces or http://www.cbc.ca/news/politics/canada-health-funding-philpott-provincial-
ministers-1.3810576

5. COMMENTS BY ONTARIO / HOSKINS
 Healthcare Waste
 Hoskins comments “"So to put that in context," Hoskins said, "Ontario stands to gain in home and
community care [with] the $3-billion commitment made by the federal government, to the tune of probably
$250 million next year, roughly, but we will lose approximately $400 million if the federal government goes
through with their position that the [health transfer] will be limited to three per cent. He also said many of
the ministers took offence at Philpott's suggestion that federal funds earmarked for health care went into
general revenues without certainty it was being spent on health services.”
 Comments
 Auditor-General eHealth - https://www.thestar.com/news/queenspark/2016/10/13/liberals-scramble-to-get-ehealth-appraised-
before-ag-weighs-in.html “A 2009 auditor general’s report found $1 billion had been spent on eHealth and its predecessor
with little to show for it at that point in time. Then in 2012, the legislative watchdog found that $24.4 million was spent on an
electronic registry of diabetes patients that was unceremoniously scrapped before it was up and running.
 LHINs - http://ochuleftwords.blogspot.ca/2015/12/37-health-care-findings-by-auditor.html
 So, Where is the Minister of Health on delivery of Healthcare dollars
http://www.cbc.ca/news/politics/canada-health-funding-philpott-provincial-ministers-1.3810576

6. HEALTHCARE

7. TRUDEAU / TRANSFERS
 Federal and provincial health ministers emerged from a day of tense talks in Toronto still at
odds over the federal government's planned cut to the annual increase in federal funding for
health care.
 Next year the Canada Health Transfer, the amount of money the federal government gives the
provinces each year to pay for health care, will stop increasing by six per cent and instead will only
increase by three per cent.
 Quebec Health Minister Gaétan Barrette said the single "concrete" takeaway from the meeting is
that the federal government is cutting health-care funding and forcing the provinces and
territories to make tough choices.
 "For today we know there will be a cut of $60 billion of funding from the federal government over
the next 10 years," Barrette said.
 "That means all provinces and territories must make difficult choices because we are being asked
to do more with less. And on top of that we are being told what to do. So I don't think this is the
end of the story.
http://thechronicleherald.ca/canada/1407726-baloney-meter-is-the-federal-government-cutting-health-
transfers-to-provinces or http://www.cbc.ca/news/politics/canada-health-funding-philpott-provincial-
ministers-1.3810576

8. COMMENTS BY ONTARIO / HOSKINS
 Healthcare Waste
 Hoskins comments “"So to put that in context," Hoskins said, "Ontario stands to gain in home and
community care [with] the $3-billion commitment made by the federal government, to the tune of probably
$250 million next year, roughly, but we will lose approximately $400 million if the federal government goes
through with their position that the [health transfer] will be limited to three per cent. He also said many of
the ministers took offence at Philpott's suggestion that federal funds earmarked for health care went into
general revenues without certainty it was being spent on health services.”
 Comments
 Auditor-General eHealth - https://www.thestar.com/news/queenspark/2016/10/13/liberals-scramble-to-get-ehealth-appraised-
before-ag-weighs-in.html “A 2009 auditor general’s report found $1 billion had been spent on eHealth and its predecessor
with little to show for it at that point in time. Then in 2012, the legislative watchdog found that $24.4 million was spent on an
electronic registry of diabetes patients that was unceremoniously scrapped before it was up and running.
 LHINs - http://ochuleftwords.blogspot.ca/2015/12/37-health-care-findings-by-auditor.html
 So, Where is the Minister of Health on delivery of Healthcare dollars
http://www.cbc.ca/news/politics/canada-health-funding-philpott-provincial-ministers-1.3810576

9. HEALTHCARE

20. EDUCATION

21. 2009-2010

22. 2009-2010

23. 2009-2010

24. 2009-2010

25. PROGRAM SPENDING

26. POST STIMULUS TRENDS

27. POST STIMULUS TRENDS

28. DEFICITS AND SPENDING TRENDS

29. STATEMENT OF OPERATIONS

30. STATEMENT OF OPERATIONS / KEY
RATIOS

31. EQUALIZATION

32. EQUALIZATION
Source: Government of Canada
• Equalization entitlements are determined by measuring provinces' ability to raise revenues – known as "fiscal
capacity". Before any adjustments, a province's per capita Equalization entitlement is equal to the amount by which
its fiscal capacity is below the average fiscal capacity of all provinces – known as the "10 province standard".
• Provinces get the greater of the amount they would receive by fully excluding natural resource revenues, or by
excluding 50 per cent of natural resource revenues.
• Equalization is adjusted to ensure fairness among provinces while continuing to provide a net fiscal benefit to
receiving provinces from their resources equivalent to half of their per capita resource revenues.
• Equalization is also adjusted to keep the total program payout growing in line with the economy. The growth path is
based on a three-year moving average of gross domestic product (GDP) growth. This helps to ensure stability and
predictability while still being responsive to economic growth. The program also maintains the benefits of the Atlantic
Accords for Nova Scotia and Newfoundland and Labrador. In 2007, the two provinces were given the choice to
continue to operate under the previous Equalization system or to permanently opt into the new program at any point
prior to the expiry of the offshore accords. Having chosen the new program, Nova Scotia benefits from a guarantee
that it will do at least as well, on a cumulative basis, as it would have under the formula agreed to at the time the
Accord was signed. Newfoundland and Labrador no longer qualifies for Equalization.

33. EQUALIZATION COMMENTS
• Finance Minister Cathy Bennett said Thursday she is disappointed Quebec asked the federal government to not
extend a loan guarantee for her province’s Muskrat Falls hydroelectric project. Bennett says Quebec just
announced it would post a surplus of $2.2 billion in the 2015-16 fiscal year while receiving $10 billion in
equalization payments. Bennett told reporters Newfoundland and Labrador will face a $1.6-billion shortfall this
fiscal year and is scheduled to receive nothing in equalization. http://www.thetelegram.com/Business/2016-10-
27/article-4673603/Newfoundland-and-Labrador-reminds-Quebec-about-Canadian-values-on-hydro-project/1
• Quote “A toast to Bernard Hancock of Fort McMurray (an oil rig worker who spoke on Parliament Hill). Good on
you! You said it better than the politicians and even the energy sector. You delivered where it should count –
Parliament. Do we have a confederation or not? In Montreal and the East, refineries (40 per cent) live on blood
oil from the Gulf states and Venezuela. Tankers are fine on the East Coast and St. Lawrence. You’d rather have
that than a pipeline and Western Canadian oil. That’s really safe! OK, fine. From now on for every year of delay
on the Energy East pipeline, the West cancels a year of transfer equalization payments. Prime Minister Trudeau,
you decide. Do we have a confederation or not?” Source – http://lethbridgeherald.com/commentary/letters-
to-the-editor/2016/10/18/do-we-have-a-confederation-or-not/

34. INFRASTRUCTURE SPENDING

35. GAS TAX FUND

36. BUILD CANADA FUND

37. FEDERAL GOVERNMENT SPENDING ON
INFRASTRUCTURE

39. FEDERAL GOVERNMENT SPENDING ON
INFRASTRUCTURE

40. FEDERAL GOVERNMENT SPENDING ON
INFRASTRUCTURE