The recently approved project could significantly improve Newfoundland and Labrador’s long-run fiscal prospects. Read this articleBay du Nord: A fiscal game-changer for Newfoundland and Labrador?
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
While only preliminary details about the FHSA have been released at this stage, some important policy issues arise from what we know so far. Read this articleAn early look at the new federal Tax-Free First Home Savings Account
A new tool from Finances of the Nation helps make sense of the long-term fiscal future of Canada’s federal government. Under several reasonable scenarios, the government’s finances are sound. But under others, concerns around long-run sustainability may mount. Read this articleA new tool to understand Canada’s fiscal sustainability
Significant reforms are needed if the goal of the act is to allow First Nations to write their own path. Read this articleIf the objective is self-governance, the 2005 First Nations property taxation law fails
The ongoing recovery from COVID has been stronger than many suspected and many emergency support programs have ended. Using the latest federal Fiscal Monitor data, we explore revenue and expense trends. We present a simple forecasting model to project revenue, expense and the federal deficit to the end of the fiscal year. Read this articleWill federal finances improve this year?
Canada’s innovation policy framework could be changed for the better. Unfortunately, not all the measures proposed in the Conservative platform offer clear-cut improvements. Read this articleThe Conservative Party’s innovation platform: a mixed bag of good, bad, and indifferent policies
The rise of small-business incorporation is suppressing taxable incomes of rich Canadians. The growing gulf between top personal tax rates and the low rates paid by small CCPCs is driving the rise of incorporation. Read this articleAre the rich really getting poorer in Canada?
For the past 35 years, debt aversion has been an organizing principle of Canada’s federal fiscal policy. This commentary demonstrates the fact of fiscal policy continuity focused on debt aversion since the 1980s and asks whether the current surge in debt is simply an emergency response to the COVID-19 pandemic and recession or the beginning of a new era of fiscal policy that is markedly less focused on avoiding debt. Read this articleDebt Aversion in Canada Since the 1980s: Are things about to change?
This commentary examines recent differences in growth rates and interest rates at the federal and provincial levels in order to estimate the future paths of public-sector debts. The results provide a novel perspective on a recurring theme in Canada’s debt sustainability debates—namely, that Ottawa is in a better position than most provinces to stabilize the debt-to-GDP ratio. Read this articleFiscal Risks and Government Debt in Canada: The Implications of Interest Rate and Growth Rate Volatility