lesson 6: federalism and intergovernmental relations Flashcards
What is federalism?
system of government in which power is divided between a national (federal) government and regional (provincial in Canada) governments
Municipalities and territories do not have …
constitutional powers
What are three ways to think about federalism?
As an institutional structure
As a characteristic of society (balancing unity and diversity
As multiple identities
What are some characteristics of a federal system?
constitution that divides powers between different levels of government
A supreme court to act as an umpire for disputes
Mechanisms for intergovernmental relations horizontally (between provinces) and vertically (between the federal and provincial governments)
Fiscal arrangements for dividing revenue between levels of government
What are the federal powers in Canada?
trade and commerce
national defence;
Indigenous peoples
criminal law and penitentiaries;
What are the provincial powers in Canada?
public lands;
hospitals and health care;
municipal institutions;
What is an example of interdependence between federal and provincial governments in Canada?
The legalization of cannabis demonstrates interdependence
fed government legalized cannabis, but each province has specific regulations
What are the main revenue sources in Canada for both federal and provincial governments?
income taxes (personal and corporate)
general sales and consumption taxes,
and payroll taxes.
Describe vertical fiscal imbalances in Canada
refer to the gap in financial capabilities between the federal and provincial governments
How can vertical fiscal imbalances be addressed?
transferring cash
Transferring or reallocating taxes:
Shifting entire tax fields:
Shifting spending responsibilities
what is transferring cash
The federal government provides intergovernmental grants to provinces.
describe Transferring or reallocating taxes:
The federal government reduces its tax rates, allowing provinces to raise theirs
Shifting entire tax fields
The federal government stops taxing a specific activity, and the provinces take over
Shifting spending responsibilities
Services are uploaded from provincial to national governments
Describe horizontal fiscal imbalances in Canada.
Horizontal fiscal imbalances occur between provinces due to regional economic disparities.