Thank you for the question.
One of the key elements of fiscal sustainability in the long term is dealing with the rate of growth of transfers to the provinces and territories. About 25% of the federal revenues are transferred. That is, Canadians' tax dollars that they pay to Ottawa are transferred back to the provinces and territories, in primarily three ways: first, in equalization; second, in the Canada health transfer; and third, in the Canada social transfer. In the long term, these transfers will grow at the rate of nominal GDP, which is the rate of growth of the economy.
Specifically with respect to the health transfer, it will continue to grow for five more years at 6%. Then, starting in 2017-18, it will grow at a three-year moving average of nominal GDP growth, with a guaranteed base of 3% or more per year. This provides certainty and stability to the provinces in their planning.
It is generous, going out to 2024. If one looks at the provincial budgets and territorial budgets so far this year—and most of them are here—there is only one province that is planning to increase its health care spending at greater than 6%, and that is the Province of Alberta at 7%. The average, in fact, of the provinces is 3.8%, although for the next five years the federal government will increase the Canada health transfer by 6% to the provinces and territories.