study by the Centre for Productivity and Prosperity – Walter J. Somers Foundation (CPP)

But since the emergence of the Welfare State provinces concerning the Canada in the mid-20th century and the development of the Canadian social safety net, the context of Canadian federation has changed and the mechanisms for financing these Health Transfer (CHT) conceals missions are clearly not adapted to the provinces’ needs. [...] 7 FEDERAL TRANSFERS TO THE PROVINCES: SETTING THE RECORD STRAIGHT At the time, the Great Depression had revealed substantial imbalances in the funding Once the war was over, the federal government asked the provinces to extend the of public services, since the responsibilities assigned to the provinces in 1867 in t. [...] To finance the war effort, Ottawa asked the provinces to cede their tax fields in the early 1940s, in exchange for financial compensation11 equivalent to the amount of the provincial debt service or the revenue from personal and corporate income tax in the year preceding the agreement. [...] 27 Government of Canada (2011), Canada's Health Care System 28 The annual amounts to which the provinces were entitled under the Hospital Insurance Act were calculated as follows: 25% of the national average per capita cost of insured services, plus 25% of the cost of insured services per resident of the province, multiplied by the population of the province for the year in question. [...] Source: The Health of Canadians – The Federal Role 38 The CAP approach to financing remained the same, as the federal government continued to cover half the eligible expenditures of the provinces under this program.