Letters to Provinces and Territories: Nova Scotia 2020

The Honourable Karen Casey, M.L.A.
Minister of Finance
Government of Nova Scotia
Provincial Building, 7th Floor
1723 Hollis Street
P.O. Box 187
Halifax, NS  B3J 2N3

Dear Minister Casey:

This has been an unprecedented and challenging year for Canadians – but we will get through this. We are a resilient people. We are a resourceful people. And we have a plan.

The battle against COVID-19 has proceeded on many fronts. We have invested in health care, increased testing and tracing, and directly supported the provinces and territories as we fight the virus. This has been a true Team Canada effort.

Canada has secured the most diverse and extensive vaccine portfolio of any country in the world. Every Canadian can rest assured that a safe and effective vaccine will be available to them, free of charge.

To date, federal support for the Canadian economy includes $322 billion in direct measures, to fight the virus and help people, and $85 billion in tax and duty deferrals. This is the largest economic relief package for our country since the Second World War. And through the Safe Restart Agreement, Safe Return to Class Fund, and other measures, the federal government has made over $24 billion in direct support available to provinces and territories.

I write you today regarding Nova Scotia’s transfer payment amounts for 2021-22. In accordance with the Federal-Provincial Fiscal Arrangements Act (the Act) and relevant regulations, total major transfers to Nova Scotia for 2021-22 will round to $3,822 million, an increase of $211 million from 2020-21. The first estimates of your province’s Canada Health Transfer and Canada Social Transfer payments for 2021-22 are $1,108.9 million and $397.9 million respectively. In accordance with the legislated formula under the Act and its regulations, your province’s Equalization payment for 2021-22 will be $2,315.3 million.

As you are aware, we are committed to introducing legislation to extend the authority to make additional fiscal equalization offset payments to Nova Scotia for any fiscal year between April 1, 2020 and March 31, 2023. Should this legislation be enacted, Nova Scotia would be eligible for an additional Fiscal Equalization Offset Payment of $44.4 million for 2021-22, as shown in the second table, below. Should the legislation not receive Royal Assent prior to March 31, 2021, Nova Scotia’s payment in respect of 2020-21 ($85.6 million) would also be made in 2021-22.

Enclosed for your information is a table presenting the 2021-22 major transfer amounts for each province and territory. The table will be provided to your officials and posted on the Department of Finance’s website in December 2020.

I look forward to continuing to work collaboratively with you, as a united Team Canada, to ensure Canadians stay safe, healthy, and have the economic support they need in these challenging times.

Yours sincerely,

The Honourable Chrystia Freeland, P.C., M.P.