What is the federal contribution to health spending?
The Government of Canada contributes to provincial health spending through the CHT (both cash and tax points), targeted funding for medical equipment and health reform, and equalization. It also makes substantial direct contributions to health care and health research. 1. The federal contribution to provincial health spending through transfers for health First, let’s look at total CHT – that is, cash and tax points – which amounts to $25.0 billion in 2004-05, including $1.6 billion from supplements. Adding in the $1.5 billion in support from the Health Reform Transfer, $500 million from the 2003 Diagnostic/Medical Equipment Fund and $130 million for public health and immunization increases this amount to $27.2 billion. This total of $27.2 billion amounts to 33% of provincial health care spending of $83 billion. 2. The additional federal contribution to provincial health spending through equalization 3 Next, the Government of Canada provides 8 of the 10 provinces with equalization, and
