FEDERAL AND PROVINCIAL GOVERNMENT FISCAL BALANCES IN CANADA’S MAJOR CITIES

This paper presents a methodology for determining the distribution of federal and provincial government expenditures and revenues to sub-provincial areas. The approach is used to determine the size of federal and provincial fiscal balances in each of Canada’s nine major cities. Calculations are presented identifying the sensitivity of those balances to income and age distributions. The implications for cities of the recent efforts by federal and provincial governments to eliminate deficits and reduce their debts are also identified and discussed. 1