Yes, yawn, fiscal federalism is pretty darn dull. But it is also pretty darn important. The division of responsibilities and resources between the feds and the provinces is central to the shape of Canadian fiscal policy overall and to the level and design of a host of jointly financed programs, including health, post secondary education and infrastructure investment. I spent […]
Read moreIn the past few weeks some of Canada’s most respected economic authorities, including Bank of Canada Governor Mark Carney, have voiced concerns over the fragility of the recovery, globally and at home. Now Paul Krugman joins that chorus of Cassandras, pointing his finger straight at the wishful thinkers who say Canada’s heavy lifting is done when it comes to economic […]
Read moreAs everybody who reads this blog knows, then Finance Minister Paul Martin brought the federal budget back into balance in the mid 1990s by, in significant part, slashing federal transfers to the provinces and eliminating automatic escalators in the new transfers he created. That cannot and will not be allowed to ever happen again, says Canada’s (now not so) New […]
Read moreThe Equalization changes are probably the most fiscally significant cuts in yesterday’s unstimulating Economic Statement. In 2009-10, the program is projected to pay out $14.2 billion instead of $16 billion. In 2010-11, it will pay $14.5 billion instead of $20 billion. This $5.5 billion difference exceeds the $3.5 billion in total projected savings from spending austerity, asset sales, the wage […]
Read moreThe 2008 OECD Survey of Canada incorporates a long and surprisingly critical overview of developments in the energy sector, with a major focus on the tar sands. (Chapter 4). It is, in many respects, far closer to the views of the Pembina Institute and the Parkland Institute in Alberta than to those of the Alberta and federal governments, and even […]
Read moreThe Federation of Canadian Municipalities released a large poll today — the largest of its type on municipal issues. The poll seems reasonably well done with decent questions and language. Many of the results are to be expected: strongest support for increased funding for health care, with increased funding for local infrastructure as a solid second in terms of priority. What surprised […]
Read moreThere have been suggestions that the Conservative government’s forthcoming Throne Speech will surrender the federal spending power. Through an op-ed in today’s Globe and Mail, Bob Rae tries to position himself, and presumably the Liberal Party, as defenders of the power. This posturing will help the Conservatives woo Quebec nationalists and help the Liberals appeal to Canadians who believe in […]
Read moreThis post was inspired by my wife, a non-economist (thankfully) who asked me the other day for my opinion on the endless equalization debate. My answer was simple: follow the politics. As every insider knows, the excommunication of Bill Casey, an MP from Nova Scotia, is only the tip of the iceberg of discontent over the Conservative government’s proposed equalization […]
Read moreA year ago, I was concerned that the Harper government, in the name of “fixing” the “fiscal imbalance”, would endorse ideas coming from the Canadian Council of Chief Executives and the CD Howe Institute for a radical decentralization of fiscal federalism. This would have entailed eliminating the non-equalization transfers to the provinces (that fund health care, post-secondary education and social […]
Read more“Canada’s New Government†says that it wants to focus on “the productivity agenda.†But they seem unable to look beyond partisan considerations to make the rather obvious link between investment in skills, and building a more productive economy. The previous Liberal government had just begun to slowly re-invest in worker training and adult learning after years of federal cuts, devolution […]
Read moreThe Institute for Research on Public Policy (IRPP) organized a breakfast forum in Ottawa today (September 12), to launch a special issue of Policy Options on the so-called “fiscal imbalance” issue. A moderately decentralist (France St Hillaire) to distinctly pro province/ right of centre (Tom Courchene and Gilles Paquet) panel of economic experts lamented the collapse of provincial unity around […]
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