Canadian Equalization Program

The Canadian Equalization Program is a federal initiative that helps ensure all provinces have similar revenue-raising capabilities, enabling them to provide comparable public services like healthcare and education. Since provinces have different sources of income (like natural resources or taxes), the program redistributes funds from wealthier provinces to those with lower revenues. This supports regional fairness and stability, allowing less wealthy provinces to offer essential services without significantly burdening their residents through higher taxes. The goal is balanced development across Canada, regardless of regional economic differences.