The Harper Government was pleased with a recent report from the PBO stating long term federal finances were “sustainable” with “substantial fiscal room.”
But Harper didn't seem to mind that the report also said this long-term fiscal health was to be achieved by “downloading billions of dollars of health-care costs on the provinces”:
“The federal fiscal structure has been transformed … to sustainable — with substantial fiscal room — largely through spending restraint and reform of the Canada Health Transfer Escalator. However, the federal fiscal room created by the change in the CHT escalator has transferred the fiscal burden to provinces and territories.”
Harper is using an accounting trick to bleed the provinces dry, incrementally.
He is tying the growth of healthcare transfers to nominal GDP growth which is projected to be lower than the expected 4.9% annual growth of health care costs.
In order to stop this corrupt neo-con “starve the beast” agenda, we must implement voting reform when opposition parties oust Harper in 2015.