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Only three provinces are currently net financial contributors to the rest of Canada: Alberta, BC and Ontario. In fact, according to the most recent federal numbers, the outflow from Ontario to other provinces is between $9-billion and $12-billion.

The contribution to inter-regional redistribution from Ontarians in the Equalization program alone is about $3.1-billion. This is larger than the outflow from any other province (Alberta’s outflow is second largest, distributing about $2.6-billion to other provinces).

Yet by bemoaning Ontario’s complaints – “Ontario was once a proud contributor to the federation,” writes the Minister – he perpetuates the myth that Ontario is currently being supported by other provinces.

This redistribution is built into the structure of fiscal federalism. It is not the fault of any particular government. But rather than acknowledge there are problems with the structure, Minister Oliver exacerbates them.

For example, last year, when the federal government announced how it would spend part of its budget for infrastructure, it indicated that only 28% of it would be allocated to Ontario. Ontario has about 39% of the Canadian population and pays about 39% of federal taxes. The inequity of the allocation will place further fiscal pressure on Ontario as it tries to reinvest in the province’s highways and transit.

According to Minister Oliver, equalization operates on a mathematical formula and so the federal government does not decide how funds are divided among provinces.