Equalization Program ‘Design Flaw’ Led to $10.5 Billion in ‘Overequalization’ Payments: Report

Equalization Program ‘Design Flaw’ Led to $10.5 Billion in ‘Overequalization’ Payments: Report
Canadian $100 bills are counted in Toronto in this file photo. The Canadian Press/Graeme Roy
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A 2009 change to the equalization program meant to control costs has instead led to a $10.5 billion increase in payments since 2018, according to a new study.
A “design flaw” in the federal program increases transfers to provinces such as Ontario, Quebec, and Nova Scotia every year even if their need for them decreases, according to a new report from the Fraser Institute.