In 76 days, so much has changed. On March 22, 2011, Federal Finance Minister James (Jim) Flaherty released the 2011 Federal Budget which, at the time, he described as a ‘jobs and growth’ Budget. The aftermath that followed the budget tabling resulted in the House dissolving and a general election which saw Canadians voting to return the Conservatives to power with a majority government.
Today’s re-tabling of the March budget confirms the governments focus on acute stimulus spending and an indication that it will gradually reduce the deficit over the next four years. From a health care perspective, this budget offers a number of moderate announcements.
Health care tops the list of priorities for Canadians and yet there is nothing in this budget to ensure a strong federal role in funding health care over the long term. A key omission, again in this budget, was a commitment to the current Canada Health Accord framework. The 2014 expiry of the Canada Health Accord is creating large uncertainties around future funding. Although it now accounts for more than 40 per cent of provincial budgets, health care consumes less than 13 cents of every federal spending dollar. That’s an equation the federal government is not eager to change as it grapples with a deficit of tens of billions of dollars.
Research Funding
The government recommitted to several significant announcements which would see millions to support health and neuroscience research in Canada. The Minister of Health’s office has indicated that the government would work to ensure any investment in research funding would complement the ongoing work of the Alzheimer Society and the CIHR.
The Budget would allocate up to $100 million (20 million over 5 years) to help establish a Canada Brain Research Fund to support Canadian neuroscience and accelerate discoveries to improve the health and quality of life for Canadians who suffer from brain disorders.
The Budget proposes $15 million per year to CIHR to support advanced health-related research, such as the Strategy on Patient-Oriented Research.
Budget 2011 announces an additional $65 million for Genome Canada to launch a new competition in the area of human health, and sustain the operating costs of Genome Canada and Genome Centres until 2013-14.
Home care tax credit
The budget includes a Family Caregiver Tax Credit of $2,000 proposed for 2012 for family members to take care of disabled dependents. After tax, this works out to $300. In our view, this amount doesn’t buy many home care hours and does little to address the overwhelming social and financial costs associating with home care.
Other home care measures included in the budget are equally underwhelming: $3 million to support the development of new community-integrated palliative care models; removing the $10,000 limit on medical expense tax credits for financially dependent relatives.
Increasing health care in rural communities
The Budget includes measures to attract more health care workers to underserved rural and remote communities. Minister Flaherty proposed to forgive a portion of the Canada Student Loans owed by family doctors, nurse practioners and nurses who practice in under-served rural or remote communities. Doctors could get up to $8,000 a year in loan forgiveness up to a maximum of $40,000 while nurses would get half this amount.
