Description

The importance of government in the modern economy is enormous though difficult to measure. It is a producer, owner, regulator, subsidizer and income redistributor, as well as a protector of the consumer and society. There is perhaps no line of economic activity that is not to some degree influenced by government, for it has permeated practically every aspect of economic life.

This book covers most aspects of the economics of the public sector in Canada. Its design and structure permits its use as a textbook or a primary supplementary source in a variety of courses on government economic and social policies for which readers require little background in economic theory.

Part I focuses on government expenditure policy. Part II examines the growth and management of government spending. Part III deals with financing the public sector. Part IV describes and analyzes intergovernmental fiscal relations in Canada. Part V covers stabilization policy to combat recession, unemployment, and inflation.

Table of Contents

Part One: GOVERNMENT IN THE ECONOMY

• Introduction: The Role of Government ÷ Social Goals and Government Activities; Resource Allocation; Redistribution of Income; Economic Stability and Growth; Other Objectives; Summary
• Economic Efficiency in Resource Allocation ÷ Imperfections in Competition; Externalities; Public Goods and Services; Summary
• Government Resource Allocation Programs ÷ Health Care Services; Education; National Defence; Transportation and Communications; Environmental Protection and Conservation; Other Resource-Absorbing Activities; Summary
• Income Redistribution and Security ÷ Income Distribution and Poverty; Anti-Poverty Programs; Income-Security Programs; Summary

Part Two: PUBLIC SECTOR GROWTH AND MANAGEMENT

• Growth and Composition of Public Sector Expenditures ÷ Factors Influencing Public Sector Growth; Government Expenditure Growth Theories; Government Expenditure Trends and Patterns; Expenditures of Public Enterprises; Tax Expenditures; Summary
• Program Delivery Systems ÷ Traditional Delivery Systems; Alternative Means of Delivering Services; Summary
• Alternative Budgeting and Financial Management ÷ The Financial Structure of the Canadian Government; The Budget Cycle; Features of the Budgetary System; Features of Provincial and Local Government Budgeting; Summary

Part Three: FINANCING THE PUBLIC SECTOR

• Introduction to Taxation ÷ Tax Bases; Principles of Taxation; Tax Incidence, Tax Shifting, and Economic Effects; Historical Development of Taxation in Canada; Summary
• The Federal Tax Structure ÷ Tax Revenue Features; Personal Income Tax; Corporate Income Tax; Other Business Taxes; Consumption-Based Taxes; Payroll Taxes; Other Revenue Sources; The Underground Economy and Tax Evasion; Summary
• Provincial and Local Government Finance ÷ Provincial Taxation; Provincial Non-Tax Revenue; Local Government Revenues; Summary
• Non-Tax Sources of Revenue ÷ Miscellaneous Revenue Sources; User Charges; Gaming; Summary
• Debt Finance ÷ Borrowing; Public Debt; Issues and Concerns of Borrowing and Debt; The Federal Debt Treadmill; Provincial Deficits, Debt, and Struggle for Control; Debt Retirement; Comparison with Other Countries; Summary

Part Three: INTERGOVERNMENTAL FISCAL RELATIONS

• Historical Development ÷ Historical Development of Fiscal Relations; Federal-Provincial Fiscal Arrangements: 1941-2002; Summary
• Intergovernmental Transfers ÷ Federal Transfers to Provinces; Transfers to Local Governments; Summary
• Constitutional Reform and Related Issues ÷ Early Developments; The Quebec Issue; Constitution Act, 1982; The Meech Lake Accord; The Charlottetown Accord; Confrontation over Natural Resources; Co-ordination of Economic and Social Policies; Summary

Part Four: FISCAL POLICY

• The Budget as An Instrument of Fiscal Policy ÷ The Budget Accounts; Fiscal Impulse Measures; Goals of Fiscal Policy; Summary
• Application of Fiscal Policy in Canada ÷ Background; Fiscal Policy 1955-1974; Fiscal Policy 1975-1998; Implications for Future Counter-Cyclical Fiscal Policy; Summary