The federal government cut transfer payments to the provinces by a total of 20% over a five-year period. In the next budget speech, the Minister of Finance announced "the level of transfer payments will be restored to their former level by a 20% increase to be phased in over the next two years." Is this an accurate statement? Explain briefly.

Question

Quizplus · Accepted Answer

The transfer payments will be 4% below their level before the cuts started.

The Federal Government Cut Transfer Payments to the Provinces by a Total