Equalization Payments

Equalization payments are financial transfers made from the federal government to less wealthy provinces or regions within a country. The goal is to ensure that all regions can provide a standard level of public services, such as healthcare and education, despite differences in their revenue-generating abilities. By redistributing funds, equalization payments help to reduce economic disparities, allowing all citizens, regardless of where they live, to access similar quality services. This system promotes fairness and cohesion within a country, supporting balanced economic development across regions.