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- The allocation of Equalization payments is based on a measure of fiscal capacity, which represents the revenues a province could raise if it were to tax at the national average rate.
www.canada.ca/en/department-finance/programs/federal-transfers/equalization.html
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Equalization is the Government of Canada's transfer program for addressing fiscal disparities among provinces. The purpose of the program was entrenched in the Canadian Constitution in 1982:
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Sep 22, 2023 · Key Takeaways. Equalization payments are transfer payments made by a government to offset financial differences between different parts of the country. Equalization payments help create...
