UPDATE: Charts updated with 2015-17 economic data (If you are looking for information about federal transfers to a certain province, or federal expenditures vs revenues in the provinces, please go to either this post for information about all federal transfers to all the provinces, and this post for a closer look at federal revenues and expenditures by province. For some reason, Google always directs people to this post only, which doesn’t really address those issues in detail.) Equalization is the Government of Canada’s transfer program for addressing fiscal disparities among provinces. Equalization payments enable the recipient provinces to provide their residents with public services that are reasonably comparable to the national standard, at reasonably comparable levels of taxation. Not every province […]
This can't be stressed enough: no province "pays into equalization" - all individual taxpayers and businesses pay into the federal government's general revenue fund, from which equalization is just one of many programs funded.