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Federal equalization payments have become very controversial inCanada. Should they be changed?

Federal equalization payments have become very controversial in Canada. Should they be changed?

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Expert Solution

The Federal equalization program of Canada has been controversial due to the amount of money being transferred each year, who does its funding and the formula which is used for determining which province is eligible for receiving the equalization payments.
From past 63 years, the Canada's equalization programs have undergone number of minor alterations, which have been for rearranging some of the features and then returning back. Due to the ongoing controversy and returning the significance of the program its essential to change the program or bring some updates to the program. As the current programs are continuously on a landslide for its failure. It's better to change the features of the program so that the work shall be done in a better way.

Rahul Sunny answered 2 years ago
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