Скачать презентацию Presentation to XV REGIONAL SEMINAR OF FISCAL POLICY Скачать презентацию Presentation to XV REGIONAL SEMINAR OF FISCAL POLICY

a2fde8a9332a6cebe2cd8e744a34c81b.ppt

  • Количество слайдов: 27

Presentation to: XV REGIONAL SEMINAR OF FISCAL POLICY CEPAL/ECLAC, United Nations Santiago de Chile, Presentation to: XV REGIONAL SEMINAR OF FISCAL POLICY CEPAL/ECLAC, United Nations Santiago de Chile, 27 -30 January 2003 ___________ FISCAL DECENTRALIZATION IN CANADA Dr. T. Russell Robinson Ottawa Canada

FORUM OF FEDERATIONS ___________________________ l “AN INTERNATIONAL NETWORK THAT SEEKS TO STRENGTHEN DEMOCRATIC GOVERNANCE FORUM OF FEDERATIONS ___________________________ l “AN INTERNATIONAL NETWORK THAT SEEKS TO STRENGTHEN DEMOCRATIC GOVERNANCE BY PROMOTING DIALOGUE ON AND UNDERSTANDING OF THE VALUES, PRACTICES, PRINCIPLES, AND POSSIBILITIES OF FEDERALISM “ _________________________________________ l BEGAN IN OTTAWA, CANADA, AND IN 1999 ESTABLISHED AS A PERMANENT INSTITUTION TO HELP IMPROVE THE PRACTICE OF FEDERALISM WORLDWIDE l HAS BOARD OF DIRECTORS FROM NIGERIA, INDIA, GERMANY, SWITZERLAND, BRAZIL AND CANADA, AND PARTICIPATION IS GROWING l CLEARING HOUSE FOR INFORMATION & RESOURCES ON PRACTICE OF FEDERALISM l PROVIDES POLICY & PROGRAM ASSISTANCE TO GOVERNMENTS l FOCUS ON EDUCATION, INFORMATION-SHARING, & MULTILATERAL, COMPARATIVE ACTIVITIES PLEASE CONSULT: www. forumfed. org

2 OVERVIEW OF CANADA (1999) 0. 1% (1898) 0. 1% (Date of entry into 2 OVERVIEW OF CANADA (1999) 0. 1% (1898) 0. 1% (Date of entry into Confederation) Share of present-day population of 31. 1 million (1870) 0. 1% (1949) (1871) 13. 2% 1. 8% (1905) 9. 7% (1867) (1905) (1870) 3. 4% (1867) 3. 8% 37. 8% 24. 1% (1873) 0. 5% (1867) 2. 5% (1867) 3. 1%

DIVISION OF POWERS _______________ __ Federal and provincial governments have independent constitutional basis of DIVISION OF POWERS _______________ __ Federal and provincial governments have independent constitutional basis of authority l (Municipalities receive their powers & responsibilities from the provincial govts) l Few / no constraints on provincial spending / taxation powers or ability to borrow l Federal and provincial govts have extensive areas of separate legislative l 3

CONSTITUTIONAL RESPONSIBILITIES _____________ FEDERAL Money and Banking International Trade Airlines Railways Foreign Affairs Defence CONSTITUTIONAL RESPONSIBILITIES _____________ FEDERAL Money and Banking International Trade Airlines Railways Foreign Affairs Defence Employment Insurance Pensions Immigration Agriculture Industry Education Health Municipal Institutions Social Welfare Police Natural Resources Highways PROVINCIAL 4

5 SPENDING AREAS & PRESSURES ____________ Few concurrent powers (agriculture, pensions, immigration, industry) l 5 SPENDING AREAS & PRESSURES ____________ Few concurrent powers (agriculture, pensions, immigration, industry) l Residual power lies with federal level l Much interdependence in practice l – areas where jurisdiction is not clear or overlaps Provincial spending pressures Health Care Education Social services Federal spending pressures Security and national defence Senior’s, Aboriginals R & D and Skills Transfers to Provinces (Health)

6 ACCESS TO REVENUE SOURCES ___________ Federal Personal Income Taxes Corporate Income Taxes Sales 6 ACCESS TO REVENUE SOURCES ___________ Federal Personal Income Taxes Corporate Income Taxes Sales Taxes Payroll Taxes Resource Royalties Gaming, Liquor Profits Property Taxes Customs Import Duties Taxes on Non-Residents Provincial

ACCESS TO REVENUES, CONTINUED ____________ Traditional tax bases are shared by Ottawa and the ACCESS TO REVENUES, CONTINUED ____________ Traditional tax bases are shared by Ottawa and the provinces l Provincial-only tax bases are growing l Federal-only tax bases are small and volatile l 7 Common revenue sources Federal. Provincial Personal income tax Corporate income tax Sales taxes Payroll taxes Provincial-only revenue sources Federal. Provincial Gambling, sale of alcohol Property taxes Natural resource revenues Federal-only revenue sources Federal. Provincial Customs tariffs and import duties Taxes on non-residents

8 TAX COLLECTION AGREEMENTS ____________ Main tax fields: • personal income tax • corporate 8 TAX COLLECTION AGREEMENTS ____________ Main tax fields: • personal income tax • corporate income tax • sales tax Federal government and many provincial governments have entered into Tax Collection Agreements covering each of the three main tax fields

CANADIAN DECENTRALIZATION: FISCAL TRENDS ________________ REVENUES (% OF GDP) EXPENDITURES (% OF GDP) Provinces CANADIAN DECENTRALIZATION: FISCAL TRENDS ________________ REVENUES (% OF GDP) EXPENDITURES (% OF GDP) Provinces Federal Transfers Federal 9

10 DECENTRALIZATION: INTERNATIONAL COMPARISONS _________________________ FEDERAL SHARE OF DIRECT SPENDING (1998) FEDERAL SHARE OF 10 DECENTRALIZATION: INTERNATIONAL COMPARISONS _________________________ FEDERAL SHARE OF DIRECT SPENDING (1998) FEDERAL SHARE OF TAX REVENUES (1998) rld Bank, Fiscal Decentralization Indicators, March 2001 (based on IMF’s Government Finance Statistics), Inter-American Develo

CANADA’S THREE MAJOR TRANSFER PROGRAMS _________________________ CANADA HEALTH AND SOCIAL TRANSFER (CHST) • Block CANADA’S THREE MAJOR TRANSFER PROGRAMS _________________________ CANADA HEALTH AND SOCIAL TRANSFER (CHST) • Block Grant [C$ 35. 7 B] • Health, PSE, social services EQUALIZATION [C$ 10. 3 B] • Unconditional • Comparable services at comparable tax rates TERRITORIAL FORMULA FINANCING (TFF) • Targeted to three northern territories [C$ 1. 3 B] 2002 -03 VALUES 11

HORIZONTAL EQUITY AND CANADIAN FISCAL EQUALIZATION 1 2 ____________ The Government of Canada has HORIZONTAL EQUITY AND CANADIAN FISCAL EQUALIZATION 1 2 ____________ The Government of Canada has the constitutional responsibility to reduce fiscal disparities between provinces l Post-Equalization revenue raising capacity still higher in more prosperous provinces (e. g. Alberta’s oil resources contribute to its 60% above average fiscal capacity) l Inter-provincial tax competition smaller provinces have difficulty keeping pace l

HOW EQUALIZATION WORKS ____________________ Post-Equalization fiscal capacity: ~ C$ 5, 900 / capita, or HOW EQUALIZATION WORKS ____________________ Post-Equalization fiscal capacity: ~ C$ 5, 900 / capita, or 96% of national average EQUALIZATION PAYMENTS PROVINCIALFISCALCAPACITY 13

CANADIAN TRANSFERS MOSTLY UNCONDITIONAL 14 ___________________________ Shared-cost/high-conditionality transfers (% of total transfers) Canada, 1945 CANADIAN TRANSFERS MOSTLY UNCONDITIONAL 14 ___________________________ Shared-cost/high-conditionality transfers (% of total transfers) Canada, 1945 -1999

CANADIAN PROVINCES RELATIVELY “REVENUE INDEPENDENT” 15 _______________________ Federal transfers as a % of total CANADIAN PROVINCES RELATIVELY “REVENUE INDEPENDENT” 15 _______________________ Federal transfers as a % of total revenues of other levels of government INTERNATIONAL CANADIAN PROVINCES Sources: World Bank, Fiscal Decentralization Indicators, March 2001 (based on IMF’s Government Finance Statistics);

PROVINCIAL CONTROL OF REVENUES ______________________ Constituent units’ control over their tax bases and tax PROVINCIAL CONTROL OF REVENUES ______________________ Constituent units’ control over their tax bases and tax rates (% of their own-source revenue) 16

ACCESS TO REVENUES: PROVINCIAL FISCAL AUTONOMY 17 ______________________ Own-source revenues as % of total ACCESS TO REVENUES: PROVINCIAL FISCAL AUTONOMY 17 ______________________ Own-source revenues as % of total provincial-local revenues International, latest available data Canada, 1945 -2000 90 --------------------85 --------------------% 80 --------------------75 -------------------- 87% 82% Germany Switzerland 82% 81% 70% U. S. India Australia Austria 70 --------------------1945 50 55 60 65 70 75 80 85 90 95 2000 Year 88% Canada Belgium Malaysia Spain 0 61% 59% 56% 22% 25 50 % 75 100

18 PROVINCIAL ACCESS TO REVENUES _____________________ Federal and provincial revenues (% of GDP) All 18 PROVINCIAL ACCESS TO REVENUES _____________________ Federal and provincial revenues (% of GDP) All provinces Forecast Federal

19 PROGRAM EXPENDITURES HIGHLY CONSTRAINED Federal and provincial program spending (% of GDP) 25% 19 PROGRAM EXPENDITURES HIGHLY CONSTRAINED Federal and provincial program spending (% of GDP) 25% 20% 15% Provincial Federal 2000 -01 1998 -99 1996 -97 1994 -95 1992 -93 1990 -91 1988 -89 1986 -87 1984 -85 1982 -83 1980 -81 10%

20 FISCAL RECOVERY IN LATE 1990 s _________________________ Federal and provincial governments fiscal balance 20 FISCAL RECOVERY IN LATE 1990 s _________________________ Federal and provincial governments fiscal balance % of GDP (1981 -82 to 2001 -02)

SUMMING UP 21 _________________________ Comparatively speaking: Canada is a highly decentralized federation l Sub-national SUMMING UP 21 _________________________ Comparatively speaking: Canada is a highly decentralized federation l Sub-national governments control their own revenues l Transfers are relatively minor (on average) and are mostly unconditional l Current pressures on social programs (health, education) cause demands for greater transfers (vertical balance debates) l The challenge of horizontal balance also continues, especially for poorer provinces & l

ANNEX CANADA’S TAX COLLECTION AGREEMENTS ANNEX CANADA’S TAX COLLECTION AGREEMENTS

A 1 TAX COLLECTION AGREEMENTS (TCAs) ___________________ • Since 1962 joint occupancy of income A 1 TAX COLLECTION AGREEMENTS (TCAs) ___________________ • Since 1962 joint occupancy of income tax field in a coordinated manner. • Agreements with 9 provinces and 3 territories for personal income tax. • Agreements with 7 provinces and 3 territories for corporate income tax.

TERMS AND CONDITIONS OF TCAs A 2 _______________________ • The federal government agrees to: TERMS AND CONDITIONS OF TCAs A 2 _______________________ • The federal government agrees to: – collect and administer provincial personal and corporate income taxes – pay provinces the value of income tax assessed, and – provide this service at very small cost • Provincial governments agree to use the federal definition of taxable income, thus ensuring a common tax base

ADMINSTRATION OF TCAs A 3 ___________________ Three departments involved: • Department of Finance Canada ADMINSTRATION OF TCAs A 3 ___________________ Three departments involved: • Department of Finance Canada is responsible for policy matters and for paying provinces their share of assessed income taxes • The Canada Customs and Revenue Agency collects, assesses, audits and enforces provincial legislation • The Auditor General of Canada conducts an audit annually of the tax collection account