News Release Article from  Finance Canada

Minister Morneau Announces Measures to Improve Territorial Formula Financing

As part of the renewed spirit of  collaboration with provinces and territories, Finance Minister Bill Morneau today  announced that the Government of Canada will introduce legislative amendments  to improve the stability and predictability of federal Territorial Formula  Financing payments and address the impact of a recent Statistics Canada data  revision. This will provide an additional $67 million to the territories  compared to the amounts calculated in December 2015.

The proposed changes  will enable the Government to recalculate 2016–17 Territorial Formula Financing  payments on the basis of the proposed legislative amendments, and help better  support the territories in their financial planning by providing more  predictability and stability.


"At the December meeting of Canada’s Finance Ministers, we promised to  work with the territorial governments to identify options for addressing the impact  of recent data revisions on territorial financial planning. Working with the three  governments, and thanks to the tireless advocacy of the Members of Parliament  for all three territories, I am pleased to bring forward a solution that will  not only help mitigate the effects of this data revision in the immediate term;  it will also improve and strengthen the program over the long term by making Territorial  Formula Financing payments more stable and predictable going forward."

- Bill Morneau, Minister of Finance

"Today's proposed fix to the Territorial Formula Financing program will provide the North with more financial resources in the short term, and the fiscal stability and predictability we will need to grow and share in the prosperity that our great land and people hold."

- Michael McLeod, MP for the Northwest Territories

"This  is an important step for Canada’s North and I appreciate the leadership shown  by Minister Morneau in addressing this issue in a constructive and  collaborative way. These positive changes demonstrate a commitment, not only to  the future of Canada’s North, but also towards a principled and productive  relationship with provincial and territorial governments."

-Hunter Tootoo, MP for Nunavut and     Minister of Fisheries, Oceans and the Canadian Coast Guard

"I am proud to be a part of a Government that  is dedicated to investing in Canada’s North as it grows and prospers while  taking on more power and responsibility for its future."

- Larry Bagnell, MP for Yukon

Quick Facts

  • Territorial Formula Financing (TFF)  provides the territorial governments with an unconditional annual grant to  enable them to provide a range of public services comparable to those offered  by provincial governments at comparable levels of taxation.
  • The federal government will provide over  $3.5 billion in funding to the territories in 2016–17 through TFF.
  • TFF accounts for a significant share of  territorial budgets: in 2015–16, it represented 70, 68 and 80 per cent of total  territorial revenues for Yukon, the Northwest Territories and Nunavut  respectively.

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Media Contacts

Annie Donolo   Press Secretary   Office of the Minister of Finance 613-369-5696

Jack Aubry   Media Relations   Department of Finance 613-369-4000

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