(Ottawa) Quebec has failed to reduce its dependence on equalization as Prime Minister François Legault wanted at the start of his mandate. The federal government will pay it $ 13.7 billion in 2022-2023, an amount unmatched for ten years.
The federal Department of Finance released on Tuesday the letters sent to the provinces and territories detailing the amount of equalization and other transfer payments. That in terms of health has been improved, but not up to what the Legault government was asking for.
Five provinces receive equalization, but Quebec is by far the one with the highest amount. By comparison, $ 2.9 billion is allocated to Manitoba, $ 2.5 billion to Nova Scotia and $ 2.4 billion to New Brunswick and $ 502.6 million to Prince Edward Island.
The calculation of this amount depends on a province’s ability to generate its own tax revenues. A province with a poorer economy will have a lower capacity than the average of the other provinces, which will entitle it to equalization payments to make up the difference.
The government of Justin Trudeau has increased the Canada health transfer by 2.1 billion for the year 2022-2023. It will therefore amount to $ 45.2 billion for all the provinces and territories.
Quebec will thus receive 446 million more from the federal health sector for a total amount of 10.1 billion. During the federal election campaign, the Legault government repeatedly demanded $ 6 billion.
The provinces have been asking for months for a $ 28 billion increase in the health transfer, which would reduce the federal government’s contribution from 22% to 35%. The Council of the Federation argues that the provinces and territories assume 78% of health costs.
During the last election campaign, the Liberals promised to create a new transfer dedicated to mental health to distribute $ 4.5 billion over five years to all provinces and territories. François Legault then denounced what he considered to be a new intrusion into a field of Quebec jurisdiction.