Unpacking Canada’s Equalization Payments for 2018-19 | The School of Public Policy
Each year, in mid-December, the federal government releases its calculation for what each province is entitled to receive as equalization. This time, the numbers are especially important.
They show how much Alberta’s recession lowered its ability to raise revenues. They show Ontario has graduated to “have” status, but (interestingly) will still receive equalization payments. They also set the stage for the upcoming Federal-Provincial-Territorial discussions over the soon-to-expire formula. And on top of all this, budget challenges in oil rich provinces of Alberta, Saskatchewan, and Newfoundland and Labrador put equalization payments front and centre in provincial political debates, where misleading claims are unfortunately all too common.
Let’s see what the latest numbers say.