This report was generated in the framework of consultations by the Subcommittee on Fiscal Imbalance of the House of Commons' Standing Committee on Finance. In the first instance, this study describes the various arguments used by the federal government and the provinces to substantiate or refute the existence of the fiscal imbalance in Canada. The authors analyze these arguments and conclude that there is, in fact, a fiscal imbalance in Canada. They then propose several solution paths.