Federal-Provincial Fiscal Arrangements Act (R.S.C., 1985, c. F-8)

Marginal note:Computation of fiscal equalization payments

• 3.6 (1) The fiscal equalization payment that may be paid to Nova Scotia and the fiscal equalization payment that may be paid to Newfoundland and Labrador, for each fiscal year beginning after March 31, 2008, is the amount, as determined by the Minister, equal to the amount determined by the formula

  (A - B) × C

  where

  A 

  is the per capita equalization standard for that fiscal year;

  B 

  is the aggregate of the average annual per capita yield in that province for each revenue source for that fiscal year; and

  C 

  is the average annual population of that province for that fiscal year.

• Marginal note:Per capita equalization standard

  (2) For the purposes of subsection (1), the Minister shall determine the per capita equalization standard for a fiscal year as if, for that fiscal year, the amount of the fiscal equalization payment that may be paid to all provinces were computed in the manner described in that subsection and shall, in making that determination, ensure that

  • (a) the amount determined by the following formula would be the same with respect to every province that would receive a fiscal equalization payment:

    A + (B / C)

    where

    A 

    is the aggregate of the average annual per capita yield in that province for each revenue source for that fiscal year,

    B 

    is the amount of the fiscal equalization payment that would be received by that province for that fiscal year, and

    C 

    is the average annual population of that province for that fiscal year; and

  • (b) the aggregate of the fiscal equalization payments that may be paid to the provinces for that fiscal year would be equal to,

    • (i) for the fiscal year beginning on April 1, 2005, $10,900,000,000,

    • (ii) for the fiscal year beginning on April 1, 2006, the product obtained by multiplying $10,900,000,000 by 1.035, and

    • (iii) for each subsequent fiscal year, the product obtained by multiplying the amount computed for the immediately preceding fiscal year by 1.035.

Marginal note:Election for fiscal year 2007-2008

• 3.7 (1) The Minister of Finance of Nova Scotia or of Newfoundland and Labrador, as the case may be, may elect, for the fiscal year beginning on April 1, 2007, that the fiscal equalization payment that may be paid to that province be equal to $1,464,528,000 for Nova Scotia and $520,510,000 or $732,462,000 for Newfoundland and Labrador, rather than the amount set out under section 3.1. The election must be communicated to the Minister in writing on or before March 1, 2008.

• Marginal note:Effect — election by Newfoundland and Labrador

  (2) If Newfoundland and Labrador elects to receive, under subsection (1), $520,510,000, that province is considered to have made the election under subsection 3.2(2).

• Marginal note:Election for subsequent fiscal years

  (3) Nova Scotia or Newfoundland and Labrador, as the case may be, may elect, at the prescribed time and in the prescribed manner, that the amount of the fiscal equalization payment that may be paid to that province

  • (a) for the fiscal year beginning on April 1, 2008, be determined under sections 3.2 and 3.4 as they read immediately before the day on which this subsection comes into force, rather than under subsection 3.6(1);

  • (b) for the fiscal year beginning on April 1, 2009, be the amount set out in section 3.11, rather than the amount determined under subsection 3.6(1); or

  • (c) for any fiscal year beginning after March 31, 2010, be determined under sections 3.2 and 3.4, rather than under subsection 3.6(1).

• Marginal note:Deemed election — Nova Scotia

  (3.1) Nova Scotia is deemed, on the day on which this subsection comes into force, to have made the election under subsection (3) in respect of the fiscal year beginning on April 1, 2008.

• Marginal note:Effect of election

  (4) As soon as a province makes the election under subsection (3), section 3.6 ceases to apply to that province.