Finance Minister Bill Morneau today announced that the Government of Canada will provide Alberta with an advance fiscal stabilization payment of approximately $251.4 million, as part of ongoing support to provincial and territorial governments to assist them in the provision of programs and services.
Today’s announcement is an example of cooperation between the federal and provincial governments to address the challenges facing middle class families, and those struggling with the effects of the economic downturn.
The Government of Alberta applied for a fiscal stabilization payment earlier this month. It was determined that Alberta qualified for the maximum amount of $60 per person, for a total amount of $251.4 million.
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“Canadians expect us to work together to help families through difficult times. I saw firsthand the challenges facing Albertan families on my recent visit to Calgary, and I am pleased to have worked closely with Minister Ceci to provide much-needed relief. I also want to thank my caucus colleagues from Alberta, including Ministers Sohi and Hehr, for their tireless advocacy on behalf of Albertans. Our government remains committed to working with provinces and territories as we implement our plan to grow the economy and ensure a strong, thriving middle class. ”
– Bill Morneau, Minister of Finance
Quick Facts
- There are four main transfer programs under the Federal-Provincial Fiscal Arrangements Act: the Canada Health Transfer, the Canada Social Transfer, Equalization and Territorial Formula Financing.
- Also included under the Act is the Government of Canada’s Fiscal Stabilization Program, which helps provinces that are facing significant year-over-year declines in their revenues resulting from extraordinary economic downturns.
- The Fiscal Stabilization Program enables the federal government to provide financial assistance to any province faced with a year-over-year decline in its non-resource revenues (such as income and sales tax revenues) greater than 5 per cent.
- Provinces must apply for payments under the program, and each claim is subject to analysis and verification by the federal government.
- A province may submit a claim to the Minister of Finance as late as 18 months after the end of the fiscal year in question, but may submit a claim for an advance payment on account based on as few as five months of data for the fiscal year in question.
- A province may receive a payment of up to $60 per capita.
- The Government of Canada continues to monitor closely the provinces’ fiscal positions. Should another province submit a claim under the Stabilization program, the Government is prepared to quickly assess it.