The economic gap between provinces has shrunk yet equalization payments have continued to increase.
According to forecasts, overpayments will account for 35 per cent of the program’s cost in 2025/26.
Ottawa raised $280 billion more from Albertans than it spent in Alberta from 2007 to 2019.
Reforms in the 1990s led to a marked decline in welfare dependency and reduced spending on social assistance.
Alberta received just $249 million in payments despite a revenue loss of $7.2 billion.
Currently, equalization payments increase in line with nominal GDP growth.
Albertans will likely vote on equalization in October.
In 2019/20, equalization comprised 21 per cent of provincial government revenue in Prince Edward Island.
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.