Finance Committee on May 7th, 2026

[Jean-Denis Garon, Bloc, Mirabel, QC]

Thank you, Mr. Chair.

I'd like to welcome the witnesses from the Department of Finance. I thank them for joining us.

Mr. Countryman, I'd like you to confirm that Canada's equalization program is a spending program funded by the federal government's consolidated revenue fund.

[Galen Countryman]

If the question was whether equalization comes out of the consolidated revenue fund, the answer is yes.

[Jean-Denis Garon, Bloc, Mirabel, QC]

Thank you.

Do you know approximately how much Quebec taxpayers contribute to the federal government's revenue?

[Galen Countryman]

I don't have that information.

[Jean-Denis Garon, Bloc, Mirabel, QC]

To continue the conversation, let's say Quebec individuals and corporations contribute 20% of the federal government's revenue. That would mean Quebeckers would pay for 20% of the equalization payments the province receives. Do you agree?

[Galen Countryman]

Equalization payments are made using the federal government's revenues, meaning the revenues come from across the country.

[Jean-Denis Garon, Bloc, Mirabel, QC]

That's excellent.

That would mean if, let's say, 20% of federal government revenues came from Alberta, 80% of funds used in equalization payments paid to Quebec would come from provinces other than Alberta, and possibly from provinces receiving equalization payments.

Does that make sense?

[Galen Countryman]

Yes. We simply look at what we spend for the provinces and calculate it at the federal level.

[Jean-Denis Garon, Bloc, Mirabel, QC]

What I'm trying to get at is there are, I believe, seven provinces receiving equalization payments. The money used to make those payments comes from the federal government's consolidated revenue fund, to which all provinces and territories contribute. This means not only do Quebeckers make 20% of their own equalization payments, it also means the vast majority of equalization payments some provinces receive are actually paid by those provinces. That's what I was trying to say.

Do you have access, at the Department of Finance, to a list of all the transfer programs, tax expenditures and tax credits paid to individuals and provincial governments that relate to areas of exclusive provincial or shared jurisdiction? If so, is it possible to provide it in writing to the committee? If not, is it possible to prepare such a list?

[Galen Countryman]

We don't have such a list.

[Jean-Denis Garon, Bloc, Mirabel, QC]

Would it be possible for the Department of Finance to prepare such a list and send it to the committee, please?

[Galen Countryman]

It depends. It's a matter of jurisdiction. Some areas of jurisdiction are shared.

[Jean-Denis Garon, Bloc, Mirabel, QC]

That's fine. You can tell us which jurisdictions are provincial and which ones are shared. Then, we'll follow up with the clerk to see if it is possible to do so. I'll also talk to the Finance Minister.

I'd like you to confirm that the Canada health transfer, which is made to the provinces and relates to an area of exclusive provincial jurisdiction, comes with conditions under the Canada Health Act.

[Galen Countryman]

Yes, you have to abide by the conditions of the Canada Health Act.

[Jean-Denis Garon, Bloc, Mirabel, QC]

This means the federal government is imposing conditions on an area of jurisdiction where it does not have the right to legislate, based on the Constitution.

Can you confirm the Canada social transfer also comes with conditions imposed on provinces in their own areas of jurisdiction?

[Galen Countryman]

The condition concerning the Canada social transfer is the minimum residency requirement for social assistance.

[Jean-Denis Garon, Bloc, Mirabel, QC]

We understand it's for social assistance, an area of exclusive provincial jurisdiction. To receive the transfer, the province must comply with conditions imposed by the federal government.

In your opinion, is it okay, appropriate or desirable for the federal government, in exchange for transfer payments or money, to require the provinces be accountable or submit performance reports in areas of jurisdiction in which the federal government has no constitutional right to legislate?

[Galen Countryman]

All I can speak to there is that, under the four transfers that I spoke to, there's no requirement for provinces to report back to the federal government.

[Jean-Denis Garon, Bloc, Mirabel, QC]

You believe the conditions relating to the transfer of money do not constitute an obligation for the provinces to be accountable to the federal government. Is that correct?

[Galen Countryman]

The four transfers that we administer are block transfers, and provinces and territories are not required to report back on how they spend those funds.

[Jean-Denis Garon, Bloc, Mirabel, QC]

Thank you, Mr. Chair.

[The Vice-Chair (Jasraj Hallan), Conservative, Jasraj Singh Hallan]

That's time. Thank you.

For the next five-minute round, we have Ms. Cobena.

[Sandra Cobena, Conservative, Newmarket—Aurora, ON]

Thank you, Mr. Chair.

I believe the right person for my questions is Mr. Larouche.

They're around your calculations.

Has your department created a cost projection for the government's announced sovereign wealth fund?

[Thomas Larouche, Director General, Budget and Government Operations, Department of Finance]

Thank you for the question.

Of course, you are referring to what was in the update, and announced by the Prime Minister a few days before, the Canada Strong fund.

I do high-level projections. I don't have the specific details on that measure, aside from what was disclosed in the update. We have a panel here to talk about general projections and the fiscal situation and things like that. I will have to refer specific questions on the Canada Strong fund to colleagues and get back to you.

[Sandra Cobena, Conservative, Newmarket—Aurora, ON]

To be clear, the fund was not included in the spring economic update, which was actually shocking because the government is going to borrow $25 billion to seed the fund.

To be clear, you don't have costing for the debt that will be taken out, and you don't have costing even for the infrastructure that will be needed to establish the fund.