摘要：The allocation of spending responsibilities and taxing powers between orders of govemment is a fundamental issue in a federation. Usually cast within a constitutional framework, it is subject to periodic stresses as the federation evolves. Even when there is initial balance between revenues and expenditures for each order of govemment, economic forces are likely to disrupt it, so that through time a divergence between the net fiscal position of federal and provincial governments arise. Called vertical fiscal imbalance (VFI), this divergence, which is built into the fiscal structure, requires periodic correction if both orders of govemment are to perform effectively their constitutionally-mandated functions.
