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Federal spending on health care set to rise faster than planned: PBO

Click to play video: 'Annual inflation rises to 5.1% in January, according to Statistics Canada'
Annual inflation rises to 5.1% in January, according to Statistics Canada
WATCH ABOVE: Annual inflation rises to 5.1% in January, according to Statistics Canada – Feb 16, 2022

The parliamentary budget officer says federal spending on health care is set to rise over the next 12 months at a faster clip than the government had previously planned.

Federal health transfers are calculated to grow by at least three per cent each year, but the budget office says that health-care transfers are set to rise by almost five per cent year-over-year.

The $2.1 billion increase will bring federal spending on health care to $45.2 billion in the coming fiscal year that starts in April.

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Budget officer Yves Giroux’s report projects that annual federal spending on health care will reach $56.1 billion by 2027.

Click to play video: 'Inflation rate likely to get worse: expert'
Inflation rate likely to get worse: expert

Recently released federal spending estimates show seniors benefits will increase by $6.7 billion, or 10.9 per cent, from the previous fiscal year, partly because of high inflation rates to which the value of payments are pegged.

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Total spending on old age security next year is projected to hit $68.3 billion and includes $740 million for a one-time payment to seniors who saw a clawback in benefits after they received emergency aid at the start of the pandemic.

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