Territorial Formula Financing
Encyclopedia
Territorial Formula Financing (TFF) is an annual unconditional transfer payment
from Canada
's federal government to the three territorial governments of Yukon
, the Northwest Territories
, and Nunavut
to support the provision of public services
.
A significant portion of the financial resources of the territorial governments comes from the Canadian federal government through the TFF grant. For instance, during the 2005-06 fiscal year, TFF was approximately 61 per cent of Yukon
’s, 66 per cent of the Northwest Territories
’ and 81 per cent of Nunavut
’s total financial resources.
In 2011-12 fiscal year, the Yukon will receive $706 million ($20,163 per capita), the North West Territories $996 million ($22,626 per capita) and Nunavut $1.175 billion ($35,099 per capita) for a total of $2.876 billion.
Transfer payment
In economics, a transfer payment is a redistribution of income in the market system. These payments are considered to be exhaustive because they do not directly absorb resources or create output...
from Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
's federal government to the three territorial governments of Yukon
Yukon
Yukon is the westernmost and smallest of Canada's three federal territories. It was named after the Yukon River. The word Yukon means "Great River" in Gwich’in....
, the Northwest Territories
Northwest Territories
The Northwest Territories is a federal territory of Canada.Located in northern Canada, the territory borders Canada's two other territories, Yukon to the west and Nunavut to the east, and three provinces: British Columbia to the southwest, and Alberta and Saskatchewan to the south...
, and Nunavut
Nunavut
Nunavut is the largest and newest federal territory of Canada; it was separated officially from the Northwest Territories on April 1, 1999, via the Nunavut Act and the Nunavut Land Claims Agreement Act, though the actual boundaries had been established in 1993...
to support the provision of public services
Public services
Public services is a term usually used to mean services provided by government to its citizens, either directly or by financing private provision of services. The term is associated with a social consensus that certain services should be available to all, regardless of income...
.
A significant portion of the financial resources of the territorial governments comes from the Canadian federal government through the TFF grant. For instance, during the 2005-06 fiscal year, TFF was approximately 61 per cent of Yukon
Yukon
Yukon is the westernmost and smallest of Canada's three federal territories. It was named after the Yukon River. The word Yukon means "Great River" in Gwich’in....
’s, 66 per cent of the Northwest Territories
Northwest Territories
The Northwest Territories is a federal territory of Canada.Located in northern Canada, the territory borders Canada's two other territories, Yukon to the west and Nunavut to the east, and three provinces: British Columbia to the southwest, and Alberta and Saskatchewan to the south...
’ and 81 per cent of Nunavut
Nunavut
Nunavut is the largest and newest federal territory of Canada; it was separated officially from the Northwest Territories on April 1, 1999, via the Nunavut Act and the Nunavut Land Claims Agreement Act, though the actual boundaries had been established in 1993...
’s total financial resources.
In 2011-12 fiscal year, the Yukon will receive $706 million ($20,163 per capita), the North West Territories $996 million ($22,626 per capita) and Nunavut $1.175 billion ($35,099 per capita) for a total of $2.876 billion.