Quebec is once again the top receiving province, raking in $13.6 billion, up a quarter billion from 2024-25
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“The current equalization system isn’t fair or sustainable,” added Smith. “It’s time for a better deal that doesn’t put all the weight on a few provinces.”
Eby said he was frustrated to see taxpayer money continue to flow to central and eastern Canada “when the pain of the cost of living is right across this country.”
“Equalization funds keep growing every year… based on the nominal national growth rate,” said Mou.
Colleen Collins, head of the Canada West Foundation, said that simmering tensions over equalization reflect a broader regional imbalance.
“The fundamental question of the West is that, financially, we punch above our weight, yet we’re largely underrepresented when it comes to influencing federal policy,” said Collins.
“We felt the same way under Harper,” added Collins, stressing that the problem transcends federal partisanship.
As in previous years, the flow of equalization payments follows a clear west to east pattern in 2025-26.
Quebec is once again the top receiving province, raking in $13.6 billion, up a quarter billion from 2024-25. The three maritime provinces will see a combined $7.3 billion in federal payments.
Meanwhile, Manitoba will get $4.7 billion from Ottawa, an increase of $337 million from 2024-25.
Ontario and Newfoundland and Labrador round out the “have not” group, receiving smaller transfers of $546 million and $113 million.
Renaud Brossard, the vice president of communications at the Montreal Economic Institute, said that the federal equalization program does no favours in the long run to receiving provinces like Quebec.
“Equalization payments mean that you never pay the full cost of bad policy decisions and never get the full benefit of good policy decisions,” said Brossard, noting that good policies run the risk of nudging a province into “have” territory.
“That discourse progressively seems to have been forgotten,” said Brossard.
“If you look at the policies Legault has pursued in recent years, they basically run counter to the growth-oriented policies he promised to bring in as premier.”
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