Thank you very much.
I would like my statement to be worked into the official record as well, Mr. Chair.
We're very pleased to be here. I'd like to thank the Auditor General for her report. It's a very thorough review of federal transfers to provincial governments, which are extremely important, particularly in challenging economic times such as now.
Overall transfers are about $60 billion this year. Over 20% of the federal government's budget is related to transfers. The four major transfers include the Canada health transfer and the Canada social transfer, which are conditional transfers to provincial governments, and the equalization program and territorial formula financing program, which are non-conditional. They simply transfer funds for the needs of provinces. Those four major transfers account for about $50 billion of our total transfer to provinces.
There are also important program transfers related to infrastructure, skills training, and housing, as the Auditor General just mentioned.
Finally, in recent years there have been a number of trusts established to deal with urgent recent priorities.
The objective of trust funds is very clear. They are transparent financial vehicles that the Government of Canada uses to transfer targeted funds to provinces and territories for short-term, urgent pressures in areas of shared national priority.
As well, trust funds offer flexibility to provinces and territories to either draw down funds immediately or over a specified longer period of time according to their respective needs.
I would emphasize that trust funds are very similar to the major transfer programs. Regardless of whether federal funding flows through the major transfers or trust funds, provinces and territories are accountable to their residents, legislatures, and auditors general on how they spend these funds. I think it's noted in the report that in recent years the government has sought and required public statements of accountability and intent, for which provincial governments are held to account.
That's all I would say in an abbreviated version, Mr. Chairman. It's a pleasure to be here.