This principle holds generally that decision-making authority should be held as close to the constituents affected by the decision as possible while higher levels of authority should hold a subsidiarity role; delegation of authority essentially moves from the lower level upwards when a case can be made that the issue to be decided upon is of a common character, affecting more than one of the members, or could not be dealt with adequately at the lower level.
Without detailing a history of contentions over these sizeable transfers, such as interference into powers that are technically within the scope or jurisdiction of provinces, in terms of the principle of subsidiarity it could be argued that while the bulk of spending and revenue raising takes place at these lower levels, this overlap and transfer also provides citizens with benefits to being members of a federal state and a large common market.
Thus, while Canada can be characterised as having a highly decentralised federation in terms of the share of public spending at the federal level, there is not only considerable room for lower level raising of revenue to act in areas under their jurisdiction, but also general overlap and cost sharing between the two levels to ensure that there is adequacy in terms of local provision of core public goods and services.
The country could have been configured, despite the division of powers in 1867, in favour of a strong centralised government that raised the bulk of taxes and found ways to impose its decisions through national majority rule on the provinces and lower levels of government.