In Canada, the federal government makes equalization payments to provincial governments of lesser fiscal capacity so that "reasonably comparable" levels of public services can be provided at similar levels of taxation.[1] Equalization payments are entrenched in the Constitution Act of 1982, subsection 36(2).[2]
The program is financed through the federal government's general revenues, which are largely sourced from federal taxes. Provincial governments make no contributions.[3]
Payment amounts are decided relative to a province's estimated fiscal capacity, or ability to generate tax revenues. A province that does not receive equalization payments is often referred to as a "have province", while one that does is called a "have-not province".[4]
In 2023–24, all provinces and territories will receive $94.6 billion in major federal transfers, including $23.96 billion in equalization payments in 6 provinces.[5]
The equalization program is one significant example of transfer payments from the federal to the provincial governments. The Canada Health Transfer (CHT) and the Canada Social Transfer (CST) are also notably large transfer programs.[6]
The territories are not included in the equalization program. Federal funding for them is instead provided through the Territorial Formula Financing (TFF) program.
^"Equalization Program". Department of Finance, Government of Canada. December 19, 2011. Retrieved May 25, 2019.
^Government of Canada (1982). "Constitution Act 1982, Canadian Charter of Rights and Freedoms, 1982". Canada Justice Laws Website. Retrieved March 16, 2023. Parliament and the government of Canada are committed to the principle of making equalization payments to ensure that provincial governments have sufficient revenues to provide reasonably comparable levels of public services at reasonably comparable levels of taxation.{{cite journal}}: Cite journal requires |journal= (help)
^Government of Canada (December 19, 2011). "Equalization Program". Retrieved March 16, 2023.
^Abedi, Maham (June 22, 2018). "Equalization payments — how they work". Global News. Global News. Retrieved April 20, 2020.
^Canada, Department of Finance (December 15, 2014). "Major federal transfers". aem. Retrieved December 17, 2022.
^Government of Canada (August 29, 2019). "Federal transfers to provinces and territories". Retrieved March 16, 2023.
and 24 Related for: Equalization payments in Canada information
InCanada, the federal government makes equalizationpayments to provincial governments of lesser fiscal capacity so that "reasonably comparable" levels...
Equalizationpayments are cash payments made in some federal systems of government from the federal government to subnational governments with the objective...
Arrangements Act. Chief among these are the Canada Social Transfer, the Canada Health Transfer and equalizationpayments. The last of these can be spent however...
The Equalizer 3 is a 2023 American vigilante action film directed by Antoine Fuqua. It is a sequel to The Equalizer 2 and the third and final installment...
substantially higher than those of other provinces." InCanada, transfers payments are contentious and equalization formulas are often revised. Implicit transfers...
In the face of these long-term regional disparities, the Government of Canada redistributes some of its revenues through unconditional equalization payments...
the provinces collect more revenue than the federal government, equalizationpayments are made by the federal government to ensure reasonably uniform...
referendum was held in Alberta, Canada on two questions, whether equalizationpayments should be eliminated from the Constitution of Canada, and whether the...
Western Canadian Provinces by Central Canada, citing issues with the National Energy Program, the Crow Rate, and EqualizationpaymentsinCanada amongst...
would not support in its current form. Nova Scotian politicians have criticized the new equalization plan, as it cuts back payments on the assumption...
typically give subsidies to poorer regional governments (e.g. equalizationpaymentsinCanada). Participant countries have similar business cycles. When...
1990 Canadian federal budget capped the annual growth of the Canada Assistance Plan at 5% for provinces who did not receive equalizationpayments for 1990-91...
as EqualizationpaymentsinCanada and the Conservatives' reversal on income trusts led to the founding of the nascent federal Party of Alberta, in 2006...
whereby Alberta is a net over-contributor to the system of equalizationpaymentsinCanada. Furthermore, the majority of Alberta's trade flows north–south...
through the CHST and its successors is used to fund them. But unlike equalizationpayments, which provinces can spend on anything, money distributed through...
"The Interest Equalization Act of 1963". US Congress. Retrieved 27 February 2011. Joint Committee on Taxation. "The Interest Equalization Act of 1963"...
federal health funding led by then prime minister Paul Martin. Unlike Equalizationpayments, which are unconditional, the CHT is a block transfer; the funds...
billion equalization rebate." The panel advised the province to "proceed with the proposed referendum on equalization," to replace the Royal Canadian Mounted...
"Growing EqualizationPayments to Ontario Threaten Country". National Post. Michel Beine; Charles S. Bos; Serge Coulombe (January 2009). "Does the Canadian economy...
province in response to what Williams called a broken promise by Conservative prime minister Stephen Harper regarding equalizationpayments to the province...
creation of equalizationpayments, which were eventually implemented in 1957. After Canada joined World War II, 14 NB army units were organized, in addition...
areas such as Canadian transfer payments, equalizationpaymentsinCanada, fiscal federalism inCanada, intergovernmental relations inCanada, poverty reduction...
Global Information