It's called 'bribing the vote.'
Federal transfers to Ontario increase $1.25B
Federal transfers to the provinces will increase $3 billion in the coming fiscal year – including $1.25 billion more to Ontario – but Finance Minister Joe Oliver and Ontario’s finance minister, Charles Sousa continue to fire political shots at one another.
It appears Canada’s two most populous provinces, Liberal-run Ontario and Quebec, aren’t on the same page as the federal Conservative government when it comes to fiscal priorities and the issue of how quickly to balance the books.
Sousa said Monday, at the start of the federal-provincial finance ministers’ meeting in Ottawa, that now is not the time to end economic stimulus in his province, and is calling on the federal government to work with the provinces on a national infrastructure strategy.
Quebec’s finance minister, Carlos Leitão says the federal government should borrow billions of dollars more to fund infrastructure projects while interest rates are low – which would potentially sink federal finances further into deficit and delay plans to balance the books in 2015.
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Oliver said on Monday morning that total federal transfers to the provinces – including health and social transfers, and equalization – will increase about $3 billion in the coming 2015-16 fiscal year, to a record $67.9 billion.
More than $20.4 billion in federal transfers will go to Ontario alone in 2015-16, about $1.25 billion more than this year. Quebec will also receive about $20.4 billion, an increase of almost $750 million.
Oliver used the opportunity to take another swipe at the Ontario Liberal government and urge it to get its fiscal house in order.
“I call on Ontario’s government and all governments to follow our lead by balancing their budgets, lowering their taxes and showing fiscal discipline,” Oliver told reporters, insisting he wasn’t taking any political shot at Ontario.
“There is no dig at Ontario. I am simply stating the facts because the government of Ontario has raised the issue of fairness of transfers, and I want Ontarians and all Canadians to know that every single province will benefit this year from an increase.”
Sousa said he wants Oliver to chat with Prime Minister Stephen Harper and “ensure that we have an open dialogue with the premier of Ontario.”
Premier Kathleen Wynne last held a meeting with Harper a year ago and has been calling on the prime minister to sit down with her to discuss a host of issues, including infrastructure.
“The last thing I want to do is be combative in a situation where we need to work together,” Sousa said. “My concern is having unilateral decisions made by the federal government without consultations with the provinces.”
Sousa urged the federal government to work with the provinces on a national infrastructure strategy, and said that while the Ontario government plans to balance its books by 2017-18, the province “must continue to take measures of stimulus” to ensure the economic recovery continues.
He wants the federal government to match his province’s $1-billion commitment to the Ring of Fire mineral belt in Northern Ontario.
“The easy answer is to take some extreme positions and just cut, cut to the point where you’re going to stall our economic recovery,” Sousa told reporters.
The Ontario finance minister said he’s pleased the federal government is “recognizing and listening to our demands” on the issue of transfers, even though the dollars are tied to set formulas and legislated increases.
“We also want our fair share and we appreciate that the federal government recognizes that as well,” Sousa said.
Equalization payments provided to so-called “have not” provinces are calculated by a complex formula that measures provinces’ ability to raise revenues, known as “fiscal capacity.” They are not unilaterally determined by the minister or government each year. Canada health and social transfers to the provinces also continue to grow each year as per legislated annual increases.
While Oliver and the Conservatives vow to balance the books in 2015, Quebec’s Leitão said the federal government should be borrowing billions of dollars during low interest rates to help fund desperately needed infrastructure such as bridges and roads.
“I don’t think that spending in infrastructure is in the same category or the same nature as spending for current programs. I think it makes sense for a government to borrow to build a bridge, or to build a highway, or to build a tunnel,” Leitão said.
“Yes, infrastructure means that you need to borrow additional money to make those required expenditures to improve your physical infrastructure, and the federal government has the capacity to do so.”
While western provinces such as Alberta, British Columbia and Saskatchewan – along with the federal government – are feeling the pinch of plunging oil prices, Leitão said the drop in crude is good for Quebec and Ontario because cheaper fuel costs act like a tax cut for their residents.
The lower crude prices are also a net positive for the United States, which will boost consumer spending and help improve exports from Ontario and Quebec to the U.S., he said.
“For us in Central Canada, a major drop in oil prices, as we have seen now, is a net positive for our economies,” he said.
Federal transfers to Ontario up $1.25 billion, as two governments spar | Ottawa Citizen
Federal transfers to Ontario increase $1.25B
Federal transfers to the provinces will increase $3 billion in the coming fiscal year – including $1.25 billion more to Ontario – but Finance Minister Joe Oliver and Ontario’s finance minister, Charles Sousa continue to fire political shots at one another.
It appears Canada’s two most populous provinces, Liberal-run Ontario and Quebec, aren’t on the same page as the federal Conservative government when it comes to fiscal priorities and the issue of how quickly to balance the books.
Sousa said Monday, at the start of the federal-provincial finance ministers’ meeting in Ottawa, that now is not the time to end economic stimulus in his province, and is calling on the federal government to work with the provinces on a national infrastructure strategy.
Quebec’s finance minister, Carlos Leitão says the federal government should borrow billions of dollars more to fund infrastructure projects while interest rates are low – which would potentially sink federal finances further into deficit and delay plans to balance the books in 2015.
Related
Oliver said on Monday morning that total federal transfers to the provinces – including health and social transfers, and equalization – will increase about $3 billion in the coming 2015-16 fiscal year, to a record $67.9 billion.
More than $20.4 billion in federal transfers will go to Ontario alone in 2015-16, about $1.25 billion more than this year. Quebec will also receive about $20.4 billion, an increase of almost $750 million.
Oliver used the opportunity to take another swipe at the Ontario Liberal government and urge it to get its fiscal house in order.
“I call on Ontario’s government and all governments to follow our lead by balancing their budgets, lowering their taxes and showing fiscal discipline,” Oliver told reporters, insisting he wasn’t taking any political shot at Ontario.
“There is no dig at Ontario. I am simply stating the facts because the government of Ontario has raised the issue of fairness of transfers, and I want Ontarians and all Canadians to know that every single province will benefit this year from an increase.”
Sousa said he wants Oliver to chat with Prime Minister Stephen Harper and “ensure that we have an open dialogue with the premier of Ontario.”
Premier Kathleen Wynne last held a meeting with Harper a year ago and has been calling on the prime minister to sit down with her to discuss a host of issues, including infrastructure.
“The last thing I want to do is be combative in a situation where we need to work together,” Sousa said. “My concern is having unilateral decisions made by the federal government without consultations with the provinces.”
Sousa urged the federal government to work with the provinces on a national infrastructure strategy, and said that while the Ontario government plans to balance its books by 2017-18, the province “must continue to take measures of stimulus” to ensure the economic recovery continues.
He wants the federal government to match his province’s $1-billion commitment to the Ring of Fire mineral belt in Northern Ontario.
“The easy answer is to take some extreme positions and just cut, cut to the point where you’re going to stall our economic recovery,” Sousa told reporters.
The Ontario finance minister said he’s pleased the federal government is “recognizing and listening to our demands” on the issue of transfers, even though the dollars are tied to set formulas and legislated increases.
“We also want our fair share and we appreciate that the federal government recognizes that as well,” Sousa said.
Equalization payments provided to so-called “have not” provinces are calculated by a complex formula that measures provinces’ ability to raise revenues, known as “fiscal capacity.” They are not unilaterally determined by the minister or government each year. Canada health and social transfers to the provinces also continue to grow each year as per legislated annual increases.
While Oliver and the Conservatives vow to balance the books in 2015, Quebec’s Leitão said the federal government should be borrowing billions of dollars during low interest rates to help fund desperately needed infrastructure such as bridges and roads.
“I don’t think that spending in infrastructure is in the same category or the same nature as spending for current programs. I think it makes sense for a government to borrow to build a bridge, or to build a highway, or to build a tunnel,” Leitão said.
“Yes, infrastructure means that you need to borrow additional money to make those required expenditures to improve your physical infrastructure, and the federal government has the capacity to do so.”
While western provinces such as Alberta, British Columbia and Saskatchewan – along with the federal government – are feeling the pinch of plunging oil prices, Leitão said the drop in crude is good for Quebec and Ontario because cheaper fuel costs act like a tax cut for their residents.
The lower crude prices are also a net positive for the United States, which will boost consumer spending and help improve exports from Ontario and Quebec to the U.S., he said.
“For us in Central Canada, a major drop in oil prices, as we have seen now, is a net positive for our economies,” he said.
Federal transfers to Ontario up $1.25 billion, as two governments spar | Ottawa Citizen
