Equalization Payments Rethink | Edmonton News

Edmonton News Today | 2 Min News | The Daily News Now! · Jul 9, 2026 · 1m

Economists are pushing for a major overhaul of Canada’s equalization payments, shifting from a revenue-based model to one tied to GDP to reduce manipulation and create a fairer system. The current formula has sparked heated debates, especially between resource-rich provinces like Alberta and Quebec, with Alberta even holding a 2021 referendum to scrap the program. New research suggests using GDP per capita, adjusted for demographics and regional costs, could offer a more balanced approach. With the next mandatory review looming, the goal remains equal services nationwide—but the method is now…