On imbalance

LKO points out Paul Wells' brilliant column on the Harper Coalition. But all skewering aside, the more important part of Wells' column lies in the recognition of just what Harper has done to the federal government - and what the Libs are in turn propping up:

(T)he current Harper-Dion government is presiding over astonishing changes to the shape of Canada's government. It's all in that February budget, which the Liberals all but ignored before voting against it — wink, wink — in small enough numbers to ensure its survival. The budget provides for provincial revenues to grow, while federal revenues as a share of GDP decline. "The gap has widened in recent years," the budget document says, and "will likely continue to grow over the coming years." The gap between provincial revenues and federal revenues — in the provinces' favour — has never been as great in more than 20 years. Federal transfers to the provinces, as a share of all federal spending, are half again as high as they were when Brian Mulroney took office a generation ago.

In 2000-2001, the gap between federal revenues and provincial-territorial revenues was $5 billion. This year — according to the innocuous-looking "Annex I" tucked at the back of the budget — it will be $36 billion. The Harper GST cuts, which the Liberals have done nothing serious to stop, will ensure that Ottawa can't grow its lost revenue back. Harper's growing transfers to the provinces, which Dion — true to his word — found a way not to defeat, ensure the provincial governments will be the only ones with the resources to undertake ambitious new projects.

What's particularly worth noting is that not all of the change described by Wells is attributable to the Cons. Indeed, the Libs held a majority government during the first wave of reckless federal tax cuts at the start of the period noted by Wells. Which means that their recent choice to egg the Cons on to provide more of the same - an invitation which the Cons were of course eager to take up - only represents a continuation of what the Libs were already doing.

What remains to be seen is whether Canadians will take the opportunity to stop the demolition of Canada's federal government before it really is too late. But it should be clear that both in government and in opposition, the Libs and Cons have consistently pushed further in that direction - and the current coalition is only the latest example rather than a particularly radical new development.