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