Which of the following statements about the Canada Health Transfer (CHT) and the Canada Social Transfer (CST) is correct?
◦ The CHT and CST are both components of equalization payments from the federal to provincial governments.
◦ The federal government makes the CHT and CST annually to the provinces for spending on health and social programs, but the provinces are free to spend the funds as they wish.
◦ The federal government makes the CHT and the CST annually to the provinces, who are legally bound to spend on the funds for their intended purposes.
◦ The CHT and CST are demogrants that are transferred annually from the federal government to individuals residing in regions of Canada that lack adequate access to health and education programs.
◦ The federal government makes the CHT and CST annually to the provinces, who in turn make transfers to individuals according to need.
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