Microeconomics,, 16th Canadian Edition

(Sean Pound) #1

18.3 Public Expenditure in Canada LO


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A large part of public expenditure is for the provision of goods and
services. Other types of expenditures, including subsidies, transfer
payments to individuals, and intergovernmental transfers, are also
important.
Fiscal federalism is the idea that the various fiscal authorities should
be coordinated in their spending plans and should have a mechanism
for transfers between the various levels of government.
The five pillars of Canadian social policy are
1. Education
2. Health care
3. Income support programs (welfare and child benefits)
4. Employment insurance
5. Retirement benefits (CPP, GIS, OAS, and tax-assisted saving
plans)
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