The COVID-19 pandemic has highlighted the need for fundamentally reforming Canada’s system of fiscal federalism. In this policy paper for Ontario 360, Sean Speer and Jonah Goldberg discuss how Ontario can play a leadership role in strategies to improve Canadian federalism as part of post-pandemic recovery planning.
This paper provides a primer on the evolution of Canadian fiscal federalism, the current state of Ontario’s transfer payments from Ottawa, and the increasing role of cities in the delivery of programs and services. It also lays out a more incremental and targeted agenda for reform to Canadian federalism, putting forward an iterative plan for disentanglement in areas such as environmental regulation, consumer protection and safety, and immigration settlement. The authors highlight actionable reforms for the short-term that could build momentum for a broader agenda to reconceptualize Canadian federalism following the COVID-19 pandemic.
