OTTAWA PROPOSING ONE-TIME $7B PAYMENT FOR HEALTHCARE, INFRASTRUCTURE

Mar 25, 2021

By Bob Komsic

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The Trudeau government’s introduced legislation that would see cash-strapped provinces, territories and municipalities receive $7.2-billion with over half going to healthcare.
If passed, Bill C-25 would result in a $4-billion one-time hike to the Canada Health Transfer; Ottawa’s portion of the cost of delivering health services.
That’s well short of the $28-billion premiers have been pushing for.
They’ve asked for a permanent increase in the federal share of health costs from roughly 22% to 35%, along with a minimum annual increase of 5%.
The legislation also proposes $1-billion would support COVID-19 immunization campaigns.
The remaining $2.2-billion would go to the Gas Tax Fund; a twice-yearly payment to provinces and territories, which in turn, transfer money to municipalities to support local infrastructure projects.
Finance Minister Chrystia Freeland says the planned spending is a down payment on programs that’ll be fully spelled out in the April 19 budget.
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