Canada – Hard To Kick The Welfare Habit

Once on welfare, its hard to get off.

This is a problem many welfare recipients face…get a job, make money, get off welfare, lose benefits. Benefits such as dental, eyeglasses, prescription drugs…who knows what else?

Sooo, there is a very large disincentive for people to get off social assistance and back into the working world.

It appears the Province of Ontario is facing he same dilemma. Balance the budget and lose the federal $3 billion “welfare” benefit. A very large disincentive indeed.

Hard to break that welfare habit.

 

Ontario finds itself in danger of shedding ‘have-not’ status and losing $3B

All provinces are concerned about the end of the 6 per cent health spending escalator. In 2017-18, health transfers from Ottawa will be linked to a rolling three-year average of nominal GDP growth (after 12 years of 6 per cent increases). Unless, that is, the Trudeau government strikes a new, more generous agreement.

In the absence of that deal — and based on current projections of 3.1 per cent nominal growth by BMO Nesbitt Burns — the change will cost Ontario $402 million.

More worrisome still for Sousa is the prospect that Ontario will become a “have” province in the 2017-18 fiscal year and no longer qualify for equalization payments, which will deliver $2.3 billion to the province this year.

The Ontario government has forecast the provincial budget will be back in the black that year. But if it stands to lose nearly $3 billion in federal transfers, those plans may have to be postponed.

All provinces are concerned about the end of the 6 per cent health spending escalator. In 2017-18, health transfers from Ottawa will be linked to a rolling three-year average of nominal GDP growth (after 12 years of 6 per cent increases). Unless, that is, the Trudeau government strikes a new, more generous agreement.

In the absence of that deal — and based on current projections of 3.1 per cent nominal growth by BMO Nesbitt Burns — the change will cost Ontario $402 million.

More worrisome still for Sousa is the prospect that Ontario will become a “have” province in the 2017-18 fiscal year and no longer qualify for equalization payments, which will deliver $2.3 billion to the province this year.

The Ontario government has forecast the provincial budget will be back in the black that year. But if it stands to lose nearly $3 billion in federal transfers, those plans may have to be postponed. – National Post

read full article here

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