Background Content

Government Commitments to Truth and Reconciliation

New Fiscal Relationship

July 12, 2016

The Government of Canada is committed to lifting the 2 percent funding cap for First Nations programs and working to establish a new fiscal relationship that gives First Nations communities sufficient, predictable and sustained funding to ensure the overall wellbeing of First Nations. Today, the Honourable Carolyn Bennett, Minister of Indigenous and Northern Affairs, and the National Chief of the Assembly of First Nations, Perry Bellegarde, signed a Memorandum of Understanding (MOU) to work together to deliver on this commitment.

The MOU will start a collaborative process for Canada and First Nations to undertake a comprehensive review of the existing fiscal relationship and develop proposals and recommendations for the design of a new fiscal relationship. This work is a foundational part of renewing the relationship between Canada and Indigenous peoples based on recognition of rights, respect, co-operation and partnership. A Joint Committee will examine the current fiscal arrangements to identify areas and elements of the existing relationship that are impeding progress in moving towards a nation-to-nation relationship. Recommendations by December 31, 2017.