SUFA and Fiscal Federalism Research Paper

SUFA and Fiscal Federalism
This paper examines the effect of the Social Union Framework Agreement (SUFA) on fiscal federalism and vertical fiscal imbalance.
# 4881 | 5,450 words | 17 sources | MLA | 2002 | CA


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Description:

The paper examines the Social Union Framework Agreement (SUFA), also known as the Calgary Declaration, and the effect it will have on fiscal federalism. It argues that the SUFA is a realization that modern federalism is not sufficient to govern a complex and highly decentralized modern welfare state. The paper also includes charts, figures and graphs.

From the Paper:

"The manifest purpose of SUFA is to manage intergovernmental relations in the area of social policy, given the high degree of interconnectedness between federal and provincial social programs. These intergovernmental relations include not only the social programs by each level of government, but also, the management of transfer payments from the federal government to the provinces. It is these transfer payments which permit a high degree of program decentralization given centralization of taxation powers; in theory, this type of arrangement ought to be economically efficient by allowing program delivery to be customized to local circumstances, but maintaining national taxation standards to avoid taxation policies which would promote factor flight, resulting in an inefficient allocation of labor and capital. Increasingly, however, revenues available to the provinces through taxation and transfers are inadequate to meet their program needs. This "vertical fiscal imbalance", though disputed by the federal government, is a serious long-term problem for provincial governments and a major motivation behind the "Calgary Declaration" which led to SUFA. On analysis, though, SUFA does not restrain the spending power of the federal government the way the provinces had intended, and will not have any meaningful impact on vertical fiscal imbalance."

Cite this Research Paper:

APA Format

SUFA and Fiscal Federalism (2003, February 11) Retrieved January 19, 2022, from https://www.academon.com/research-paper/sufa-and-fiscal-federalism-4881/

MLA Format

"SUFA and Fiscal Federalism" 11 February 2003. Web. 19 January. 2022. <https://www.academon.com/research-paper/sufa-and-fiscal-federalism-4881/>

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