Abstract: Recent research that examines the influence between the decentralization of fiscal policy and consolidated government's fiscal balances has failed to incorporate the full extent of the independent taxing powers available to sub­national governments (Thornton, 2009). As a result, the current literature overstates the degree of effective revenue decentralization, and more research would be required to determine the linkages and degrees of influence between sub­national and national fiscal policies. In order to further explore this topic, this paper will aim to measure the impacts of sub­national fiscal behaviour on national macroeconomic indicators, using the Province of Ontario as a case study. Pending the availability of data, this paper will investigate the spending and saving behaviours of the Government of Ontario from 1982 until 2010, and compare the time series to the evolution of Canada’s balance of payments. Through regression analysis, this paper will measure the degree of influence that Ontario's fiscal policy has had on the Canadian economic climate.