Payments to recipient provinces are increasing even as the gap between richer and poorer provinces shrinks.
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.
Albertans will likely vote on equalization in October.
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.
Alberta’s fiscal capacity dropped by an estimated 45.1 per cent between 2007 and this year.