Dear John,

When the federal government makes spending commitments in areas of provincial jurisdiction, there is always the risk that when the federal government changes – or when the federal government's priorities change – the provinces will be on the hook to finance those programs.

A new study published by the Fraser Institute today draws on the experience of Canada’s recent past – the 1990s – when the federal government reformed and reduced transfers to the provinces to tackle the federal deficit and mounting debt.

Its findings are simple: money promised today is not guaranteed tomorrow.

Provincial policymakers should keep this in mind as the federal government promises to increase spending in areas of provincial jurisdiction, including pharmacare, dental care, and childcare programs.

Dig into the numbers here, and be sure to spread this news around!

Sincerely,

Niels Veldhuis
President
The Fraser Institute