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Alberta’s finances—back to the ’90s?
During the early 1990s, the federal government and many provinces faced fiscal challenges so daunting that many described the situation as a crisis. As governments across the country run historically large deficits in response to the ...
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Ottawa should empower provinces to generate health-care funding
Ontario Finance Minister Rod Phillips and Premier Doug Ford recently called on the Trudeau government to increase the amount of money it sends to the provinces each year to support health-care spending. Premier Ford said that, along with ...
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Canada’s ‘Fiscal Stabilization’ program—what is it, and is it working well?
The Trudeau government recently announced reforms to Canada’s contentious Fiscal Stabilization Program (FSP), which delivers payments to provinces that experience a sharp year-over-year decline in revenue. It’s useful to think of the FSP ...
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Maritime provinces could soon see smaller slice of equalization pie
Appeared in the New Brunswick Telegraph-Journal, December 8, 2020 Many Canadians have long thought of their country as divided between affluent “have” provinces and poorer “have-nots.” The traditional dividing line has been whether a province receives ...
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Making sense of Canada’s $381.6 billion federal budget deficit
The Trudeau government this week published its fall fiscal update for 2020. The headline-grabbing number emerging from the report was the government’s forecasted budget deficit for the year—$381.6 billion. As is often the case when it ...
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Policymakers must recognize shrinking gap between rich and poor provinces
Appeared in the Globe and Mail, December 3, 2020 Many Canadians have long thought of their country as divided between affluent “have” provinces and poorer “have-nots.” The traditional dividing line has been whether a province receives equalization ...
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Ontario’s finances—back to the ’90s?
During the early 1990s, the federal government and many provinces faced severe fiscal challenges so daunting that many described the situation as a crisis. As governments across the country run historically large deficits in response to ...
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Alberta ‘fiscal capacity’ plummeting, Kenney government must react
Appeared in the Edmonton Journal, December 3, 2020 Many Canadians have long thought of their country as divided between affluent “have” provinces and poorer “have-nots.” The traditional dividing line has been whether a province receives equalization ...
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The Great Convergence: Measuring the Fiscal Capacity Gap Between “Have” and “Have-Not” Provinces
Since 2007/08, the fiscal capacity gap between richer and poorer Canadian provinces has shrunk dramatically, with the trend accelerating significantly after 2014–15. Fiscal capacity refers to a province’s ability to raise own-source revenues at tax rates ...
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What a difference a decade can make—southwestern Ontario’s sobering lesson for Alberta
At the start of this century, southwestern Ontario was among the most prosperous regions in Canada. With a strong manufacturing sector, there were plenty of good high-paying jobs. In the following years, the regional economy was battered ...