The money injection is detailed in a brand new invoice, C-25, that Freeland tabled within the Home of Commons this morning.
If handed, it could present a $4 billion one-time enhance to the Canada Well being Switch — the federal authorities’s major contribution towards the price of delivering well being providers within the provinces and territories. One other $1 billion would fund COVID-19 immunization campaigns throughout the nation.
The remaining $2.2 billion would go to the Fuel Tax Fund — a twice-yearly fee to provinces and territories which, in flip, switch funds to municipalities to assist native infrastructure priorities.
“COVID-19 has positioned excessive stress on well being care programs throughout the nation. The pandemic remains to be right here and plenty of elements of our nation are going through the specter of a 3rd wave proper now,” Freeland informed a digital press convention.
“This cash will make sure that our well being system is not going to buckle below the continued pressure of the pandemic, below the pressures of the third wave and new variants.”
Federal funds coming in April
The announcement comes simply lower than a month earlier than the Liberal authorities unveils its first funds in over two years.
The funds is anticipated to supply a full accounting of all authorities spending via the pandemic, which has despatched the deficit for the fiscal 12 months to nearly $400 billion.
It’s also anticipated to stipulate the Liberals’ plan to spend between $70 billion and $100 billion over the approaching years on stimulus to assist the economic system get better.
Infrastructure Minister Catherine McKenna mentioned the rise to the Fuel Tax Fund doubles the federal authorities’s yearly contribution and can assist fund the development or enlargement of broadband web entry, public transit networks and recreation centres.
“We acknowledge the important position that fast investments in native infrastructure play in addressing the wants of cities and cities, in addition to Indigenous communities, throughout our nation,” mentioned McKenna. “And in fact, that is about getting Canadians again to work.”
The $4 billion enhance to the federal well being switch falls nicely in need of the $28 billion increase premiers have been pushing for.
Proper now, the provinces spend about $188 billion on well being care and the federal authorities covers $42 billion — roughly 22 per cent of complete prices. Premiers have requested for a everlasting enhance within the federal share to 35 per cent cent, which works out to a further $28 billion and would convey the overall federal share to $70 billion.
Premiers are asking the federal government to keep up this contribution stage over time, with a minimal annual escalator of 5 per cent.
Prime Minister Justin Trudeau has mentioned the federal authorities will hold its spending concentrate on emergency help in the interim and will not discuss long-term well being care funding till after the pandemic is over.
Final summer time, the federal government offered $19 billion to the provinces and territories via the Secure Restart Settlement to cowl a few of their prices associated quite a few precedence areas within the struggle in opposition to COVID-19.
