Fiscal Federalism
Fiscal federalism has to do with how states with more than one order of
government organize themselves for the purposes of collecting revenues and
financing expenditures. The capacity of the federal, provincial and territorial
governments to assume their responsibilities hinges on the balance between
decentralization of revenues and decentralization of government spending, the
scale of transfers between orders of government, the conditions attached to
those transfers, the differences in the respective capacity of the provinces and
territories to provide comparable public services at comparable levels of
taxation and tax collection arrangements within the country.
The following text, illustrates, on a comparative basis, the revenues and
spending of the federal, provincial and territorial governments:
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