Federalism and equalization payments in Canada
Summary :
Table of Contents
- Introduction
- Imbalance between the federal and provincial governments
- Stephen Harper's Conservative government
- Conclusion
- Bibliography
Abstract
Within the realm of Canadian federalism, one of the core principles is the idea of equality between the provinces, particularly when it comes to social programs and services. As a Canadian, there are certain things we all hold dear, many of which are social programs like universal health care, and a social safety net. However, as good as this might sound in practice, the nature of the Canadian federation, which is comprised of ten provinces and three territories, makes it hard to provide equal access to these programs when the different units of the federation have different fiscal circumstances. For this reason, equalization payments have long been used as a tool by the federal government to rectify the fiscal imbalance that exists between the different units of the federation (the provinces and territories). This program is meant to address the "horizontal fiscal imbalance" that exists between the provinces (the territories do not fall under the scope of the equalization program, but are dealt with using the Territorial Formula Financing program).
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