Madam Chair, let me begin by thanking you for the opportunity to speak this evening before the committee of the whole. I would like to use my time today to describe some of the ways that our government can maximize investments to stimulate growth and produce positive results for our country.

The main estimates tabled in May outline priority investments in housing, the Canadian Armed Forces, indigenous communities, dental care, border services and veterans' benefits. They also include transfer payments to the provinces and territories, such as payments for health care and payments to individuals, like benefits for seniors and persons with disabilities.

Today I will highlight some of these important investments that our government believes will have a lasting impact. The federal government provides significant ongoing financial support to provincial and territorial governments to help them deliver programs and services through four main transfer programs. The largest overall federal transfer is the Canada health transfer, which has increased by $2.6 billion for 2025-26. This will provide predictable long-term funding for health care and supports the principle of the Canada Health Act.

This important federal transfer is provided to the provinces and territories to support health care. It increases every year based on a three-year moving average of nominal gross domestic product growth, with guaranteed funding that will increase by at least 5% per year until 2027-28, and 3% per year thereafter. We all know that a strong and effective health care system is essential to a strong and healthy Canada. We need to work together to improve health care for all Canadians.

The second-largest overall federal transfer to the provinces and territories is the fiscal equalization program. This important program ensures that less prosperous provinces have sufficient revenues to provide reasonably comparable levels of public services at reasonably comparable levels of taxation, thereby reducing fiscal disparities between the provinces. Total equalization payments increase each year based on a three-year moving average of nominal GDP growth. The $917-million increase reflects the 3.6% escalator based on GDP for 2024-25.

The Canada social transfer, or CST, is the third-largest federal transfer to the provinces and territories. It supports three broad areas of social programs: post-secondary education, social assistance and social services, as well as early childhood development, early learning and child care. The 2025–26 main estimates increase the CST by just over $507 million, reflecting the 3% annual growth rate provided for in the legislation.

The fourth federal transfer is made through the territorial formula financing, which enables territorial governments to provide their residents with programs and services comparable to those provided in the rest of Canada, at comparable levels of taxation, taking into account the higher costs of services and the unique circumstances of the north. The $330-million increase reflects the indexation of the program, which is based on total provincial, local and territorial government spending, adjusted to account for differences in population growth and changes in revenue-raising capacity in the program formula set out in the legislation.

This important program helps territorial governments fund essential public services such as hospitals, schools, infrastructure and social services, and recognizes the high cost of public services in the north and the challenges territorial governments face in delivering services to many people in small, often very isolated communities.

In these uncertain times, it is especially important that we invest in major national interest infrastructure projects to help make Canada an energy superpower. We want the government to become that superpower. The federal government can provide the Canada Infrastructure Bank, or CIB, with up to $35 billion to support infrastructure projects across the country.

The CIB focuses on priority areas of investment, including public transit, green infrastructure, clean energy, broadband access, and trade and transportation. The $26.1-million increase reflects payments made to the CIB to carry out approved activities outlined in its 2024-25 to 2028-29 corporate plan.

In addition, we are committed to expanding the types of projects the CIB can support to be more aligned with first nations, Inuit and Métis priorities, because we know that efforts to build a strong Canada must include all indigenous communities.

In addition to the important investments we are making at home, we are committed to remaining united with our allies and partners to support Ukraine as it fights for its freedom and security. The $200-million payment to the World Bank Group's financial intermediary fund in support of Ukraine is part of Canada's contribution through the G7 leaders' Extraordinary Revenue Acceleration Loan initiative, which will be used to support projects, programs and activities that meet Ukraine's budget, recovery and reconstruction needs.

In conclusion, the measures in the main estimates that have been put forward today are a very important part of the government's commitment to transparency and the responsible use of public funds to produce results for Canadians.

After the election, not so long ago, we took immediate action to support Canadians. This includes building a more affordable Canada by cutting the goods and services tax, or GST, on new homes up to $1 million for first-time homebuyers to help them save up to $50,000, by lowering the GST on new homes between $1 million and $1.5 million, and by providing tax relief to nearly 22 million middle-class Canadians. Finally, it means that millions of Canadian workers will be able to keep more of their hard-earned money to build a better future.

Responsible spending is about making prudent investments in the priorities that matter most to Canadians. Canada has the tools it needs to succeed, and we remain committed to working every day to protect our workers, families and businesses. The main estimates clearly describe how the government, our government, is responding to the priorities of Canadians who are taking up challenges and seizing opportunities.

With these important investments, we will help build a stronger Canada from coast to coast to coast.

Again, I am thankful for the opportunity to speak today.

Now, I have a few questions for the Minister of Finance.

First, I want to thank my colleague and friend, the Minister of Finance, who is doing incredible work, hard work, to support Canadians from coast to coast to coast.

Lastly, a key aspect of our government's plan is a tax cut for nearly 22 million Canadians from one end of the country to the other.

I wonder if the Minister of Finance could explain to the committee the importance of this tax cut.

Ginette Petitpas Taylor

$381,712.00