Currently, equalization payments increase in line with nominal GDP growth.
In 2019/20, equalization comprised 21 per cent of provincial government revenue in Prince Edward Island.
The three Maritime provinces rely more heavily on federal transfers than any other province.
As a share of the province’s total government revenue, New Brunswick’s equalization payments fell from 23.7 per cent to 19 per cent.
The fiscal capacity gap between “have” and "have-not" provinces has shrunk from 27 per cent to 6 per cent.
The equalization program will cost nearly $20 billion this year.