A 2009 change to the equalization program meant to control costs has instead led to a $10.5 billion increase in payments since 2018, according to a new study.
A “design flaw” in the federal program increases transfers to provinces such as Ontario, Quebec, and Nova Scotia every year even if their need for them decreases, according to a new report from the Fraser Institute.
This means that, since 2018, the “have-not” provinces have received approximately $10.5 billion more in equalization payments than they would have under a formula that adjusts to actual differences in provincial revenues, the report said. Provinces including Alberta, British Columbia, and Saskatchewan shoulder more of the burden….