FISCAL STABILIZATION PROGRAM COST TO TRIPLE THIS YEAR

Reforms to a federal support program for provinces will nearly triple the cost to Ottawa next year, with the price tag projected to be about $4.5 billion, says Canada’s parliamentary budget officer. yves Giroux, pictured, 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 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. Several provincial ministers expressed disappointment the Liberals didn’t eliminate the funding cap.