NEWS RELEASE – Funding Commitment of the Government of Canada
In support of the agreements reached by First Ministers, the Government of Canada will invest a total of $23.4 billion over the next five years.
Of this amount, $21.1 billion will be invested in the Canada Health and Social Transfer (CHST).
The CHST supports health, post-secondary education, early childhood development, and other social programs.
CHST legislation will be extended to provide provinces and territories with stable, predictable, and growing funding through to 2005-06.
The $21.1 billion is allocated to provinces and territories on an equal per capita basis.
The Government of Canada will also provide $2.3 billion in targeted funding to help provinces and territories meet health care challenges:
Medical Equipment Fund - a $1 billion contribution to the purchase of modern, much needed diagnostic and other medical equipment, and associated installation costs. Provinces and territories will be able to start drawing on these funds as soon as legislation is passed this year.
Health Information Technology - $500 million to accelerate the adoption of modern information technologies to provide better health care.
Health Transition Fund for Primary Care - $800 million in temporary funding to accelerate primary care reform.