| • Science | • People | • Locations | • Timeline |
| Contents | ||
According to the fiscal imbalance theory, Ottawa has achieved an important surplus by cutting its contributions towards provinces, leaving them with responsibilities much too expensive for their resources. A major work having developed the theory is the Seguin Report , commanded by then Premier of Quebec Bernard Landry and accomplished by now Quebec Minister of Finance Yves Séguin .
It has been, these past few years, a major issue brought by all parties of the National Assembly of Quebec. The Parti libéral du Québec proposes to work with the federal government to solve the problem and give back money to Quebec. Yves Séguin, of the PLQ, proposes transferring control of the GST from Ottawa to the Quebec government. The Parti Québécois holds that sovereignty will solve the imbalance, with all powers to impose taxes brought back to Quebec City and proposes, until then, to struggle to convince the federal government to give back money to Quebec.
All major parties but the Liberals recognize a monetary imbalance between Ottawa and the provinces and speak of plans to reduce it, the Bloc Québécois probably being the strongest denouncer of the situation. Paul Martin and his Liberals prefer to speak of a fiscal "pressure" on provinces, therefore not admiting directly a responsibility of the Canadian government. Their stance on a solution is not clear: sometimes, a sharp closeness is voiced, like when Martin wrote an open letter to the Quebec finance minister suggesting to Quebec City a raise of their own taxes; sometimes (especially during the campaign), a will to work on the "fiscal pressure" problem is presented by the Liberal party. The Bloc suggested that the GST be given to the provinces.