Federal-Provincial Fiscal Arrangements Act

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.