
By the numbers: Most provinces seeing surpluses as they demand federal health cash
Global News
As Canada’s premiers express disappointment over Ottawa’s health deal, questions are being raised about why they are demanding more federal cash while sitting on surplus budgets.
As Canada’s premiers express disappointment over Ottawa’s health-care funding offer, questions are being raised about why provinces are demanding more federal cash while sitting on tens of millions of surplus dollars and other financial gains in their own budgets.
The 13 premiers have signalled their intent to accept a new funding deal with Ottawa that will infuse $46.2 billion in new money for health care over the next decade, but they have done so reluctantly, saying the amounts on offer fall short of what is needed. They have said they can no longer afford to shoulder the growing burden of health-care costs at the current rate.
They’ve been demanding what would have amounted to an annual $28-billion increase in funding from the federal government for health care by way of a structural change to the formula of the Canada Health Transfer.
But while the premiers have been calling for Ottawa to pay more, Prime Minister Justin Trudeau and his cabinet ministers have been firing back, pointing to the increasingly rosy financial situations of the provinces.
Last week, Trudeau said it’s time provinces and territories “step up” and use more of their own surplus budget dollars to support health-care workers.
So, where do the provinces and territories stand when it comes to their budgets and how much more money do they have this year?
Almost every province and territory experienced significant financial gains over the last year, due in part to inflation driving up tax and natural resource revenues, their detailed financial data shows.
As a result, more than half of the provinces and territories now have surplus budgets — which means they will take in more money than they plan to spend this year.