Executive Summary – Distribution of Federal Revenues and Expenditures by Province

(Disponible en français : Résumé – La répartition des revenus et des dépenses du gouvernement fédéral par province)

The federal government collects revenues and makes expenditures in all provinces. Per capita federal revenues and spending vary from province to province, depending on the economic and demographic conditions in each province. Sources of federal revenues include personal and corporate income tax, the Goods and Services Tax and social insurance contributions. Federal spending encompasses transfers to persons (through the Canada Pension Plan and Employment Insurance, for example), transfers to provinces (through such programs as Equalization and the Canada Health Transfer), as well as federal spending on goods and services to support government operations.

This Background Paper examines the distribution of federal revenues and expenditures from 2011 to 2018 by province. It concludes that net federal expenditures have a clear redistributive effect by transferring resources from more affluent to less affluent Canadians, regardless of province of residence.

Read the full text of the Background Paper: Distribution of Federal Revenues and Expenditures by Province

Authors: Sirina Kerim-Dikeni and Sarah Rwigema, Library of Parliament

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