Which of the following is true of equalization payments?

Question

Quizplus · Accepted Answer

Equalization payments are a feature of the Canadian federal system designed to address fiscal disparities among provinces. Not every province has received equalization payments at some point, but the statement that every province has received equalization is true in the sense that the program is designed to benefit provinces with less fiscal capacity. Equalization transfers are unconditional, not conditional, meaning they can be used by receiving provinces as they see fit. The equalization formula is determined by the federal government, not by consensus among provincial governments.

Which of the Following Is True of Equalization Payments