Consider the data presented in the table below. Suppose that the federal government in creases grants to
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Consider the data presented in the table below. Suppose that the federal government in creases grants to provincial governments by $6 billion in 2010. Does the increase in grants necessarily lead to an increase in total government spending? Why or why not?
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Government Expenditures before and after Intergovernmental Grants (millions of dollars) Federal Government Including Excluding Grants 258,209 Grants 193,130 Provincial Governments Local Governments Total Including Excluding Including Excluding Excluding Grants Grants Grants Grants Grants 144,736 144,589 377,313 324,778 662,497 2009 Source: Data taken from Karin Treff and Deborah Ort, Finances of the Nation, 2010 (Toronto: Canadian Tax Foundation, 2011), B5. Note that for this example CPP and QPP have not been included in the total. "Excluding grants" refers to grants made to other levels of government.
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Related Book For
Public Finance In Canada
ISBN: 9781259030772
5th Canadian Edition
Authors: Harvey S. Rosen, Ted Gayer, Jean-Francois Wen, Tracy Snoddon
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