Here's a link to comments by Brian Crowley of the Atlantic Institute for Market Studies on the so-called fiscal imbalance between the federal government and the provincial governments.
"Now, a case has been made, Mr. Chairman, by a number of commentators on provincial government that there exists a fiscal imbalance between Ottawa and the provinces, by which I think they mean there is a mismatch between what the two levels of government are called to do under the Constitution, on the one hand, and the fiscal resources that they currently enjoy to carry out those responsibilities, on the other. In other words, Ottawa has too much cash relative to its responsibilities, and the provinces too little, and furthermore, the excess of cash at the federal level is the cause of the fiscal shortfall at the provincial level.
Now, before we rush to find solutions to that problem, it's important to determine whether the premises that define that problem are in fact correct, and I intend to make the case this morning, Mr. Chairman, that those premises are faulty, that the provinces have adequate resources at their disposal, including room to raise taxes, that Ottawa's surpluses are the proper reward to the federal government for its fiscal virtue, and that Ottawa's improved fiscal position is in no way at the expense of the provinces." [Emphasis added]
