ECON 241 Lecture Notes - Lecture 5: Fiscal Imbalance, Fiscal Federalism
15 Oct 2018
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Document Summary
Throughout 1970s+1980s was persistent argument from right that deficits + increases debt because welfare state too large+ growing shrink welfare state. Social policy part of story about deficits + increases debt, but only part of spending story much of social spending non-discretionary fiscal federalism. Canada is federal state so have central government (federal) + regional government (provincials) Division of powers between two levels of government. Constitution lists (cid:862)clean(cid:863) division of tax + spending power between levels. On tax side, both levels levy same away of taxes, expect federal have few resource taxes+ provincials no customs duties. On spending side is cleaner, but fed spending power allows federal government to be involved in areas of provincial jurisdiction (medicate + cpp) Major transfers also allows fed influence in provincial areas. Re social policy feds pensions, ei, child benefits, some health +education provincials health care delivery, education+ pse, training, welfare, child benefits. Fiscal federalism refers to fiscal relationships between levels of government.
