Smith targets Ontario over equalization, leaves Quebec’s $13.9B untouched
Alberta’s premier says Ottawa’s formula overpaid “have-not” provinces by $7B in five years as Carney refuses to commit to reform.
Alberta Premier Danielle Smith is demanding Mark Carney overhaul Canada’s equalization formula, accusing Ottawa of overpaying recipient provinces—including Ontario—while Alberta taxpayers continue footing the bill.
But despite repeatedly criticizing Ontario, Smith did not mention Quebec, the country's largest equalization recipient, which is set to receive $13.9 billion—more than half of the program's record $27.2 billion payout in 2026–27.
“Stop cutting cheques to Ontario,” Smith declared Thursday, renewing her push to rewrite the formula before its next scheduled review.
Smith argued equalization has drifted far from its original purpose by allowing payments to rise automatically with the national economy, even as the fiscal gap between provinces narrows.
“We’ve calculated that there’s overcompensation to the have-not provinces of $7 billion over the last five years,” she said.
