Coherent Identifier About this item: 20.500.12592/j73wpc

A closer look at Ontario's "$23-billion gap"

2005

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In fact, as this paper demonstrates, the growth in both federal revenues and expenditures in Ontario since 1995 is in line with the trends in other provinces. [...] L I B R A R Y. O F. P A R L I A M E N T B I B L I O T H È Q U E. D U. P A R L E M E N T 3 The fact that federal revenues frequently exceed expenditures in Ontario (Figure 2) – and the fact that Ontario is usually a net fiscal contributor to Canada – speak to the wealth of the province. [...] However, the growth rates of revenues and expenditures since 1995 suggest that growth in federal revenues and expenditures in Ontario is in line with the national average. [...] This view implies that the amount of money flowing out of the net “contributors” to Canada – Ontario, Alberta and British Columbia in 2002 – equals the amount flowing into the rest of the country. [...] In the context of net financial inflows and outflows to/from the provinces, it can be seen that in times of deficit – the early to mid-1990s, for example – federal expenditures made in the provinces were being financed by revenues from those provinces, plus government borrowing.

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government politics public finance economics economy taxation finance economic policy government policy unemployment government budget employment insurance taxes government debt fiscal deficit government budget balance federal budget federal deficit deficits equalization equalization payments government finances transfer payments budgets and budgeting canadian transfer payments federal surpluses intergovernmental fiscal relationss

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