Fraser Institute

If the federal government pursued reductions in provincial transfers like those made during the mid-1990s, the provinces would face a $19.4 billion funding shortfall in order to maintain current spending levels, according to a new study published by the Fraser Institute. “When the federal government makes spending commitments in areas of provincial jurisdiction, there is always the risk that when federal priorities change, the provinces will be on the hook to finance those programs and their increasing costs,” said Jake Fuss, director of fiscal studies at the Fraser Institute and co-author of What Happens If Provinces Are Left Holding the Bag? Calculating the Fiscal Burden of Federal Intrusions in Provincial Jurisdiction. The report is available online. Contact drue.macpherson@fraserinstitute.org.