Achieving a National Purpose
Improving Territorial Formula Financing and Strengthening Canada’s Territories

Expert Panel on Equalization and Territorial Formula Financing
May 2006

Table of Contents

Letter

Acknowledgements

Executive Summary

• Achieving a national purpose
• Issues and ideas
• A new approach to Territorial Formula Financing
• Benefits of the Panel’s new approach
• Assessing the financial impact
• Concluding comments

Launching a comprehensive review

• Starting with fundamental principles
• Expert Panel established
• Territorial Formula Financing is distinctly different
• Consultations on Territorial Formula Financing

Unique challenges in the Territories

• Identifying needs and challenges

Understanding Territorial Formula Financing

• The basics of Territorial Formula Financing
• Measuring expenditure needs
• Measuring revenue capacity
• The New Framework

Issues and ideas

• Adequacy of Territorial Formula Financing in meeting needs in the territories
• Self-sufficiency and economic development in the territories
• Concerns with the New Framework
• Simplicity and transparency
• Devolution and resource revenue sharing
• Options for new approaches

A new approach to Territorial Formula Financing

• Starting with principles
• The Panel’s Recommendations
• Benefits of the Panel’s new approach

Assessing the financial impact

Addressing outstanding issues

Annexes

• Annex 1: List of Canadians Consulted
• Annex 2: Some Evidence of Expenditure Needs and the Costs of Providing Public Services in the Territories
• What is expenditure need?
• How is expenditure need measured?
• Unique circumstances affect the volume and costs of public services in the territories
• What are some indicators of expenditure needs and costs in key expenditure areas in the territories?
• The Panel’s assessment
• Annex 3: Territorial Formula Financing: A Brief History
• Annex 4: A New Approach to Territorial Formula Financing (TFF)
• Bibliography

Reports are available from the Distribution Centre
Department of Finance Canada
Room P-135, West Tower
300 Laurier Avenue West
Ottawa, Ontario K1A 0G5

Tel: (613) 995-2855
Fax: (613) 996-0518

Also on the Internet at: www.eqtff-pfft.ca

Cette publication est également disponible en français.

Cat. No.: F2-177/2006E
ISBN: 0-662-42570-7

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