"The Task Force held public hearings in Ottawa and in each of the provincial and territorial capitals. An attempt was made to hear representatives of as many associations and institutions as possible within the short time available. ..."--Page iii

The key issues in fiscal federalism will be debated once again when the federal government, the provinces, and the territories return to the negotiating table. Ottawa has appointed an expert panel on equalization and territorial formula financing and the provinces and territories have established an advisory panel on fiscal imbalance. Both will report in the first half of 2006, after which the negotiating pace will accelerate. In a timely collection, contributors from the government and academia tackle these fiscal policy issues from a broad spectrum of perspectives.

The key issues in fiscal federalism will be debated once again when the federal government, the provinces, and the territories return to the negotiating table. Ottawa has appointed an expert panel on equalization and territorial formula financing and the provinces and territories have established an advisory panel on fiscal imbalance. Both will report in the first half of 2006, after which the negotiating pace will accelerate. In a timely collection, contributors from the government and academia tackle these fiscal policy issues from a broad spectrum of perspectives.

The study includes a useful historical perspective on Canadian fiscal federalism and a program-by-program review of the system's key features. Drawing on this analysis, the authors present innovative proposals for reform of EPF and the CAP.

Canada: State of the Federation, 1999–2000 identifies and explains major threads in Canadian fiscal federalism. Set against the cacophony over domineering and arrogant centralization from supporters of Quebec sovereignty/session on the one hand, and fears that excessive decentralization is fuelling an obsessively neo-liberal agenda on the other, these essays replace much of this heat with new light. The authors begin with an examination of recent developments in the theoretical literature surrounding fiscal federalism. They then examine some of the major issues facing the federation – Is there a vertical imbalance between federal and provincial governments? Does Ottawa collect more revenues than are needed relative to its spending responsibilities while the provinces are under-funded? How do federal-provincial struggles over money and jurisdictional power affect local government or the para-public sector, emerging aboriginal governments, and citizens? Federal government actions in 1999 suggest that Ottawa has not lost all of its interest in social outcomes. It is, however, seeking to influence the well-being of citizens by transferring money to them directly rather than through transfers to provinces. The authors suggest that if this trend continues the approach to the millennium will be seen as a watershed in public policy, given that current trends in Canadian fiscal federalism are as much about re-balancing the federation as they are about decentralization.

The author presents in this volume the Canadian fiscal affairs in the postwar II era. Subjects treated are: the economic consequences of adopting a Keynesian role for government, the growth of government expenditure, evolution of federal-provincial tax sharing and transfer programmes, developments in provincial budget, history of Canadian tariff changes leading to the free trade and the history and current status of international tax arrangements. The description of the tax reforms 1962-71 and 1985-87 is also included.