Premiers from coast to coast have started angling for an overdue review of the federal program
. The Premiers of Newfoundland and Labrador and British Columbia are worried about equalization, too.
The money for the 67-year-old equalization program doesn’t come from provincial coffers, it comes from federal taxes paid all across the country. From that, Ottawa makes transfers to provincial governments based on an established formula. As is entrenched in the Constitution, That friction is now coming to a head. Newfoundland and Labrador will receive just more than $200-million in equalization this year, but believes it is due hundreds of millions of dollars more. It announced this spring that it is, with Liberal Premier Andrew Furey arguing Ottawa does not consider the cost of delivery of services to his geographically dispersed province.
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