Federal Fiscal Equalization Law

The Federal Fiscal Equalization Law is a Canadian policy designed to reduce financial disparities among provinces. It provides additional funding to less wealthy provinces so they can offer essential services like healthcare and education at similar levels to wealthier provinces. This system promotes national economic stability and social cohesion by ensuring all Canadians have access to comparable public services, regardless of regional economic differences. The law recognizes that provinces with fewer resources need extra support to meet their residents’ needs, fostering a more balanced and equitable federation.