Planned cuts to the provincial budgets outlined in November have been reversed. Instead, billions are now being allocated to pay for salary increases of essential personnel such as policemen, teachers, nurses and prosecutors.

Despite the reversal, the 2.6% increase in the equitable share budget, which constitutes the lion’s share of provincial revenue, still falls below the inflation rate. This means that in real terms, there is no growth even as provinces continue to provide critical social services such as education, health and policing...

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