The federal equalization program and per-capita block grants such as the Canada Health Transfer and Canada Social Transfer have their critics. But equalization helps to prevent outmigration from “have-not” provinces, and block grants in effect substitute federal taxes for less efficient provincial ones. Read this articleEvaluation of federal transfers to the provinces
In the end, it is not only how much or how little you spend but what you spend it on and what you get for it. Canadian health care is not bad, but it could be better, given the amount of money being spent. Read this articleCanada is a big spender on health care but we lag behind countries in results
In 2016, the government of Canada introduced the Canada Child Benefit (CCB), a large income-tested transfer to families with children. Our research shows it works well for low-income Canadians but causes a significant decrease in hours worked by secondary earners in middle-income families. We argue the CCB could be better-targeted toward low-income households. Read this articleIs the Canada Child Benefit an effective policy? Impacts on earnings and incomes
Economic and fiscal disruptions from the pandemic may soon reveal an unintended quirk in Canada’s equalization program: falling resource revenues in Saskatchewan or Newfoundland and Labrador may cause Ontario to become a recipient province. The case for changes to equalization is growing stronger. It would be unfortunate if Alberta’s referendum distracted from that. Read this articleCOVID — not Alberta’s referendum — should motivate changes to the equalization program
The Conservative Party of Canada proposes to increase the growth rate of the Canada Health Transfer to at least six per cent per year for a decade. We explore the implications of this for overall health transfers and for provincial governments. Read this articleUnpacking the Conservative Party’s proposal to boost health transfers to the provinces
Canada’s equalization program is one of the most important federal transfers — and one of the most misunderstood. A new tool from Finances of the Nation opens the black box and understand how it works, how it doesn’t, and what the future might hold. Read this articleA New Tool to Understand Equalization Payments in Canada
In both Canada and the United States, net fiscal transfers across jurisdictions are largely the result of differences in economic strength and demographics, not unequal treatment by the federal government.
Read this articleWho “Pays” and Who “Receives” in Confederation?