I could also add that there is a fiscal imbalance between the federal government and the provinces as well as between the provinces. There is an horizontal fiscal imbalance and a vertical fiscal imbalance. The first one I defined was the vertical imbalance. The other one is the horizontal imbalance. In other words, some provinces are wealthier than others. The Canadian Constitution sets out to strike a balance between the provinces through equalization. This responsibility is enshrined in the Constitution; it is a federal responsibility.
