Federal Budget 2021: It’s Time to Increase the Canada Health Transfer


Fiscal projections
(billions of dollars)

2021-2022 2025-2026 2030-2031 2035-2036 2039-2040

Federal government
Fiscal balance
–130.5 –23.2 −13.5 15.7 50.9
Provinces and territories
Fiscal balance
–46.5 –63.1 –102.5 –154.6 –207.9

Source: Based on requested custom scenarios simulated by the Conference Board of Canada


“The Prime Minister has acknowledged that the federal government needs to increase health care funding but proposes to focus on the short term and in targeted areas rather than on the long term. The federal government has the necessary financial means and fiscal leeway. The upcoming federal budget is the right time for the federal government to act as a real funding partner to secure the future of health care systems in Canada.”

–François Legault, Chair of the Council of the Federation and Premier of Québec.


  • Before the pandemic, provinces and territories were expecting to spend $188 billion for health care services in 2020-2021. The federal contribution through the CHT is set to reach $42 billion this year, which represents 22% of these provincial and territorial health expenditures.
  • Health care costs represent more than half a billion dollars per day and are projected to grow at an annual average rate of 5%, while the CHT is currently growing by approximately 3%. This difference produces dramatic shortfalls when applied against $188 billion in annual costs, with the impacts compounding over time. Cost drivers include aging, population growth, drugs and technologies – plus new and long-term costs related to the COVID-19 pandemic.

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Media enquiries may be directed to:

Ewan Sauves
Press Secretary
Office of the Premier
Government of Québec
(514) 585-4451
Loretta O’Connor
Executive Director
Council of the Federation Secretariat
(613) 863-8448