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First Ministers' Meeting
Ottawa, Ontario - September 11, 2000
New Federal Investments to Accompany the Agreements on
Health Renewal and Early Childhood Development
OTTAWA - September 11, 2000. The Prime Minister today announced $23.4
billion of new federal investments over five years to support agreements
by First Ministers on Health Renewal and Early Childhood Development (ECD).
To ensure stable, predictable and growing funding in the Canada
Health and Social Transfer (CHST), the federal government will legislate
over $21 billion of additional cash over the next five years. This includes
a new $2.2 billion investment for ECD.
This will bring the total cash transfer to the provinces and territories
through the CHST to $18.3 billion in 2001-02, $19.1 billion in 2002-03,
rising to $21.0 billion in 2005-06. In that year, CHST cash will be 35
per cent above the current level of $15.5 billion.
Combined with the growth in the value of the CHST tax points to
$18.8 billion, the federal transfer to provinces and territories, which
is for health, post-secondary education and social services, will grow
to about $40 billion by 2005-06.
To ensure further predictability, by the end of 2003-04, the federal
government will establish the CHST cash transfers for years 2006-07 and
2007-08.
To accelerate and broaden health renewal, the Government of Canada
will also be investing in three targetted areas reflecting agreed priorities:
-
It will invest a total of $1 billion in 2000-01 and 2001-02, through transfers
to the provinces and territories for new medical equipment, $500 million
of which will be available immediately to enable the acquisition of necessary
diagnostic and treatment equipment;
-
It will invest a further $800 million over four years, beginning in 2001-02,
in a renewed Health Transition Fund to support innovation and reform in
primary care;
-
It will invest $500 million immediately in an independent corporation mandated
to accelerate the development and adoption of modern systems of information
technology, such as electronic patient records, so as to provide better
health care.
-
First Ministers raised the issue of the Equalization. The Minister of Finance
will examine this issue further after consultation with provincial Ministers
of Finance. While final revisions for Equalization purposes for fiscal
year 1999-2000 likely will not be known until October 2002, the Prime Minister
agreed to take the necessary steps to ensure that no ceiling will apply
to the 1999-2000 fiscal year. Thereafter, the established Equalization
formula will apply, which allows the program to grow up to the rate of
growth of GDP.
Funding Commitments of the
Government of Canada to Accompany
the Agreements on Health Renewal and Early Childhood
Development
(billions of dollars)
|
Current
Legislation |
Beyond
Current Legislation |
Total
New Cash |
|
2000-01 |
2001-02 |
2002-03 |
2003-04 |
2004-05 |
2005-06 |
CANADA
HEALTH &
SOCIAL TRANSFER* |
Current
cash1 |
15.5 |
15.5 |
15.5 |
15.5 |
15.52 |
15.52 |
-- |
General
cash increase |
|
2.5 |
3.2 |
3.8 |
4.4 |
5 |
18.9 |
Early
Childhood Development |
|
0.3 |
0.4 |
0.5 |
0.5 |
0.5 |
2.2 |
TOTAL
CHST CASH |
15.5 |
18.3 |
19.1 |
19.8 |
20.4 |
21 |
-- |
Medical
Equipment Fund |
0.5 |
0.5 |
|
|
|
|
1 |
Health
Information Technology |
0.5 |
|
|
|
|
|
0.5 |
Health
Transition Fund for Primary Care |
|
0.2 |
0.2 |
0.2 |
0.2 |
|
0.8 |
TOTAL
CASH 3 |
16.5 |
19 |
19.3 |
20 |
20.6 |
21 |
-- |
CHST
tax point transfers |
15.3 |
15.8 |
16.5 |
17.2 |
18 |
18.8 |
|
Total
CHST Entitlements |
30.8 |
34.1 |
35.6 |
37 |
38.4 |
39.8 |
|
|
|
|
|
|
|
|
|
TOTAL
FUNDING |
31.8 |
34.8 |
35.8 |
37.2 |
38.6 |
39.8 |
-- |
|
|
|
|
|
|
|
23.4 |
* The CHST supports provincial/territorial programs
in the areas of health, post-secondary education and social services.
1 Current cash includes both CHST
supplements of Budget 1999 ($3.5 billion) and Budget 2000 ($2.5 billlion).
2 Existing legislation extends
to 2003-04. $15.5 billion is base cash for subsequent years.
3 Sum of total CHST cash transfers
and funding for non-CHST measures.
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