Archived - Minister Morneau Announces Measures to Improve Territorial Formula Financing
February 16, 2016 – Ottawa, Ontario– Department of Finance
As part of the renewed spirit of collaboration with provinces and territories, Finance Minister Bill Morneau today announced that the Government of Canada will introduce legislative amendments to improve the stability and predictability of federal Territorial Formula Financing payments and address the impact of a recent Statistics Canada data revision. This will provide an additional $67 million to the territories compared to the amounts calculated in December 2015.
The proposed changes will enable the Government to recalculate 2016–17 Territorial Formula Financing payments on the basis of the proposed legislative amendments, and help better support the territories in their financial planning by providing more predictability and stability.
- Territorial Formula Financing (TFF) provides the territorial governments with an unconditional annual grant to enable them to provide a range of public services comparable to those offered by provincial governments at comparable levels of taxation.
- The federal government will provide over $3.5 billion in funding to the territories in 2016–17 through TFF.
- TFF accounts for a significant share of territorial budgets: in 2015–16, it represented 70, 68 and 80 per cent of total territorial revenues for Yukon, the Northwest Territories and Nunavut respectively.
Office of the Minister of Finance
Department of Finance
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