By Clifford Krauss
NEW YORK TIMES NEWS SERVICE
September 18, 2004
TORONTO– Prime Minister Paul Martin gained a major victory for his flagging government Thursday by reaching an agreement with provincial and territorial leaders that would substantially increase federal spending for Canada's ailing $60 billion national health-care system.
After three days of contentious negotiations, the officials agreed to send $14 billion in federal money over six years to the 13 provinces and territories that administer health care, with guarantees of additional 6 percent annual increases through 2015.
Still, the agreement will fall far short of fulfilling Martin's upbeat pledges in the recent election campaign to "fix the system for a generation."
The increases in spending will barely keep up with rising costs. It will also cut into the government's capacity to manage growing urban problems such as homelessness and to fulfill promises to improve education and rebuild the armed forces, especially if the currently robust economy slows.
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