The Fraser Institute, web image
A new study from the Fraser Institute says Canada’s federation functions best when the federal and provincial governments stay within their constitutional boundaries.
The report, Stay-in-Your-Lane Federalism: Keeping the Peace in Federal-Provincial Relations, argues that national unity and regional stability are strongest when Ottawa avoids interfering in areas of provincial responsibility.
“Except for certain federal interventions during times of national crisis, Canada functions best when the federal government doesn’t interfere in matters of provincial responsibility,” said John Ibbitson, media fellow with the Fraser Institute and co-author of the study.
The analysis traces decades of federal-provincial relations and finds that Ottawa’s involvement in provincial areas—such as the 1970s expansion of national programs—has historically led to regional tensions and separatist sentiment. By contrast, periods of what the authors call “passive federalism,” such as the mid-1990s to 2015, saw reduced tensions and stronger national cohesion.
According to the study, the federal government has recently expanded its reach again through initiatives like national dental care, pharmacare, daycare, and the carbon tax. Federal transfers to the provinces reached $100.2 billion in 2023–24, a 58.8 per cent increase since 2014–15.
“Ottawa’s increasing intrusions into provincial areas of responsibility have led to increased regional tensions and separatist threats in Quebec and Western Canada,” said co-author Livio Di Matteo, a senior fellow with the Fraser Institute.
The study concludes that the Canadian federation works best, and national unity is strongest, when each level of government respects its constitutional jurisdiction.
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