snap cost the federal government $ 441. 8 billion.
snap cost the federal government $ 441. 8 billion.
how much does snap cost the federal government?
$ 441. 8 billion
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under this new arrangement, cost sharing was no more. provinces/territories now had more flexibility, as long as the federal terms and conditions continued to be met. the federal government had more predictability. rather than an open-ended commitment, epf established a per capita entitlement (not adjusted for age-sex or other demographic factors) which would be indexed to inflation. this money would go into provincial general revenues. to simplify a complex formula, the epf entitlement could be seen as consisting of two components. part of the funds were in the form of "tax transfers" whereby "the federal government agreed with provincial and territorial governments to reduce its personal and corporate income tax rates, thus allowing them to raise their tax rates by the same amount. as a result, revenue that would have flowed to the federal government began to flow directly to provincial and territorial governments." this transfer could not be reversed by subsequent governments, meaning that the federal government had no fiscal leverage over this component of the transfer. (indeed, there has been an ongoing controversy as to whether this component should even be considered part of the federal contribution.) the remainder of the entitlement was in the form of cash grants. although the per capita amount was intended to be escalated to inflation, subsequently, the federal government tried to deal with its fiscal position by unilaterally first reducing and then freezing the inflation escalator. as the cash portion threatened to disappear, in 1996, the federal government combined the epf transfers with another cost-shared program, the canada assistance plan (cap), to form the canada health and social transfer (chst). this enabled the federal government to both cut the total transfers (by approximately the amount in the cap) while retaining a 'cash floor' on the total amount. in 2004, these transfers were split into the canada health transfer (cht) and the canada social transfer. the federal department of finance publishes brief guides to these programs. nonetheless, many argue that there has been no explicit federal transfer for health care since 1977, since these programs are no longer tied to specific spending.
canada health act