Comment 75466

By Baboune (anonymous) | Posted March 27, 2012 at 13:34:42

Pauvre Quebec...

“Provinces … differ in their ability ‘to provide reasonably comparable levels of public services’ because they have to spend different amounts to offer similar services; in other words, because they have different expenditure needs,” he writes, quoting Section 36.2 of the Constitution Act.

For example, if the equalization formula factored “need” into it, Ontario would have received an additional $822 million from Ottawa in 2008-09 while B.C. would have been given an extra $879 million.

Even energy-rich Alberta, Saskatchewan and Newfoundland, where cost-of-living expenses are growing fast, would have gained $526 million, $332 million and $310 million respectively.

But Quebec, by far the largest equalization recipient, would have been given $3.11 billion less that year.

“Ontario and Quebec would receive equally large equalization payments of just over $4.5 billion each. Under the current fiscal capacity-only system, Quebec receives more than twice as much as Ontario, $7.6 billion versus $3.7 billion.

That allows Quebec to provide its residents with services like $7-a-day childcare, which Ontario could never afford.

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