Ontario will accomplish an impressive double-feat this year: The province is poised to shed its “have-not” status, while still scooping up hundreds of millions of dollars from the federal equalization program. The $963 million in equalization money Ontario will receive comes in the form of “adjustment payments,” and may be disconcerting for Albertans who are already skeptical of a program that attracts populist ire in the province. The loophole dates back to a decision made by the previous government in 2009, when it tied the total amount of equalization payments to the growth of the Canadian economy. The Conference Board of Canada says the problems with the equalization formula are “glaringly obvious” in the case of Newfoundland and Labrador. The big winner would be Newfoundland and Labrador, which would go from zero equalization dollars to $208 million.

Source: National Post February 04, 2018 16:41 UTC