Finance Minister Chrystia Freeland said pharmacare does not threaten Canada’s fiscal health as the federal government intends to adhere to spending rules it committed to this fall.
The NDP confirmed Friday that it has reached an agreement with the Liberals on pharmaceutical health care that will give all Canadians with a medical card free access to diabetes medications and contraceptives.
The coverage would be included in the first part of a national pharmacare program, a key pillar of the bipartisan Supply and Confidence Agreement, with legislation expected to be introduced in the House of Representatives this week.
Freeland told reporters at a Polish military base on Sunday that he was “confident” that a concrete agreement could be reached in the coming days. He said the federal government is committed to striking the right balance between investing in human resources and respecting fiscal constraints.
“It’s very important to our government that we invest in Canada and Canadians, and that we do so in a fiscally responsible way,” Freeland said. “We have provided some fiscal guidance in the autumn economic report and we intend to respond to that.”
NDP Leader Jagmeet Singh joins CBC Chief Political Correspondent Rosemary Barton to talk about the pharmacare agreement his party reached with the Liberals earlier this week. Singh said the agreement includes diabetes treatment and contraception.
The Liberal government faces pressure not to increase the federal deficit as the economy slows and interest rates remain high.
Responding to calls for more disciplined budgeting, Ottawa will limit the deficit to less than 1% of gross domestic product starting in 2026-27, keeping the current fiscal year’s deficit below the $40.1 billion projected in the spring budget. I set a goal.
It also aims to lower the debt-to-GDP ratio in 2024-25 than expected in the autumn economic report.
With negotiations appearing to stall earlier this year, Health Minister Mark Holland has repeatedly increased the cost of future pharmacare programs.
The only unresolved issue at the negotiating table was what types of diabetes supplies would be covered, according to people close to the negotiations.
The Liberals have revealed they are spending about $800 million on initial plans, said the people, who requested anonymity because they were not authorized to discuss details of private negotiations publicly.
