Ottawa will give out a record high in equalization payments to the provinces next year totalling more than $27 billion, an increase of roughly $1 billion from this year.
The federal equalization program involves the transfer of tax dollars collected by Ottawa from across the country to provinces with lesser abilities to raise revenues at given tax rates.
Quebec will once again receive the highest equalization payments of any province, including $13.9 billion in fiscal year 2026-27, representing an increase of roughly $300 million from fiscal year 2025-26, according to the federal finance department.
The second-highest payment will go to Manitoba at approximately $5 billion, followed by Nova Scotia at $3.5 billion, New Brunswick at $3.3 billion, Prince Edward Island at $723 million, Ontario at $406 million, and Newfoundland and Labrador at $182 million….