Equalization is a federal government program that aims to provide Canadians in all provinces with access to reasonably comparable public services at comparable levels of taxation. It attempts to achieve this objective by providing cash payments from the federal government to governments of provinces that have a lower fiscal capacity—the ability to raise revenues. In recent years, largely as a result of economic slumps in several non-recipient provinces, disparities between the fiscal capacity of recipient and non-recipient provinces have generally shrunk significantly.
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