Equalization, the centerpiece of Canada’s interprovincial redistribution system, has been significantly undermined by Ottawa’s ability and willingness to use other programs to effect further redistribution, says the latest issue of C.D. Howe Institute Commentary, released today.
The 1999 quinquennial review of equalization provides the opportunity to reverse this trend and bolster sagging support for the program. The report recommends an overarching approach to equalization that includes redistribution among provinces that takes place outside of equalization.