Equalization flop: Rich provinces got billions, poorer ones got nothing
Canada’s equalization formula favoured at least one richer province over a poorer one in 15 of the last 25 years, highlighting structural flaws in the program.
Canada’s equalization program has repeatedly done the opposite of what it promises—cutting cheques to richer provinces while poorer ones were shut out, a new Fraser Institute study found.
The non-partisan think tank found Canada’s equalization formula favoured at least one richer province over a poorer one in 15 of the last 25 years, highlighting structural flaws in the program.
“More often than not, over the past few decades, there have been provinces that have received equalization even though they had a higher living standard than provinces that received none,” said Tegan Hill, co-author of Is Equalization Broken?
The study found that in all but three years between 1981 and 2024, the equalization formula either paid more per person to wealthier recipient provinces or excluded poorer provinces altogether.
