The NCB Progress Report: 2004

Figure 1
How the NCB Works

Description: A Venn diagram illustrates the relationship between the Canada Child Tax Benefit (CCTB) and the National Child Benefit (NCB).

The CCTB is targeted to low-and middle-income families with children, while the National Child Benefit Initiative is aimed at low-income families with children.

The diagram is composed of three circles aligned horizontally. The left-most circle illustrates the base benefit of the CCTB; this circle does not intersect with any other circle. In 2003-2004, the Government of Canada provided $5.5 billion through the base benefit of the CCTB.

The middle circle illustrates the NCB Supplement, and the right-most circle illustrates the NCB Investments and Reinvestments by provinces, territories and First Nations. The middle (NCB Supplement) and right-most circle (P/T Investments and Reinvestments) intersect; this intersection illustrates the NCB Reinvestments.

In 2003-2004, the Government of Canada provided $2.7 billion through the NCB Supplement (middle circle). The right-most circle represents the provincial, territorial and First Nations component of the NCB initiative. This circle overlaps with the NCB Supplement. The area of overlap represents NCB reinvestments, which totalled $696.6 million in 2003-2004. The remainder of the right-most circle represents additional NCB investments by provinces, territories and First Nations, which totalled $182.8 million in 2003-2004.

Reinvestment funds comprise social assistance/child benefit savings and, in some jurisdictions, Children’s Special Allowance recoveries. Please see Appendix 2 for further details.

Investment funds comprise additional funds that some jurisdictions spend on NCB initiatives, over and above the reinvestment funds. Please see Appendix 2 for further details.

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