Yves Giroux, Canada's parliamentary budget officer, says the government's fiscal stabilization program, which transfers cash to provinces that experience steep year-over-year revenue drops, will increase by $2.9 billion in fiscal 2021-22.
Prime Minister Justin Trudeau announced a major change to the program in the government's fall economic update.
The revenue-insurance plan will lift funding capped for more than three decades at $60 per resident to $170, indexing the payment ceiling to Canada’s rate of GDP growth per person.
Alberta Premier Jason Kenney has said the overhaul does not go far enough, calling it a "slap in the face," since even major declines in resource revenue might not trigger the fiscal stabilization, while a five per cent drop in non-resource revenue will.
The program only kicks in for resource income when decreases exceed 50 per cent.
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