Federal transfers to provinces and territories

The Government of Canada provides significant financial support to provincial and territorial governments on an ongoing basis to assist them in the provision of programs and services. There are four main transfer programs: the Canada Health Transfer, the Canada Social Transfer, Equalization and Territorial Formula Financing.

The Canada Health Transfer and Canada Social Transfer are federal transfers to provinces and territories which support specific policy areas such as health care, post-secondary education, social assistance and social services, early childhood development, and child care.

The Equalization and Territorial Formula Financing programs provide unconditional transfers to the provinces and territories. Equalization enables less prosperous provincial governments to provide their residents with public services that are reasonably comparable to those in other provinces, at reasonably comparable levels of taxation. Territorial Formula Financing provides territorial governments with funding to support public services, in recognition of the higher cost of providing programs and services in the north.

(Updated December 2023)

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