Federal-Provincial Fiscal Arrangements Act

Marginal note:Fiscal equalization payments

• 4.1 (1) The fiscal equalization payments to the provinces

  • (a) for the fiscal year beginning on April 1, 2005, shall equal $10.9 billion;

  • (b) for the fiscal year beginning on April 1, 2006, shall equal the product obtained by multiplying $10.9 billion by 1.035; and

  • (c) for each subsequent fiscal year, shall equal the product obtained by multiplying the fiscal equalization payment for the immediately preceding fiscal year by 1.035.

• Marginal note:Provincial allocation for fiscal year 2005-2006

  (2) The fiscal equalization payment referred to in paragraph (1)(a) shall be allocated to the provinces as follows:

  • (a) to Quebec, $4,798,070,000;

  • (b) to Nova Scotia, $1,343,527,000;

  • (c) to New Brunswick, $1,347,993,000;

  • (d) to Manitoba, $1,601,018,000;

  • (e) to British Columbia, $589,698,000;

  • (f) to Prince Edward Island, $276,563,000;

  • (g) to Saskatchewan, $82,172,000; and

  • (h) to Newfoundland and Labrador, $860,959,000.

• Marginal note:Provincial allocation for subsequent fiscal years

  (3) The fiscal equalization payments referred to in paragraphs (1)(b) and (c) shall be allocated to each province in the same proportion as the fiscal equalization payment referred to in paragraph (1)(a) is allocated under subsection (2).

• Marginal note:Time and manner of payment

  (4) The Minister shall pay the fiscal equalization payment to the province in equal monthly instalments on the first and third working days after the 15th day of each month during the relevant fiscal year. For the purpose of this subsection, “working day” includes any day that is not a Saturday or a holiday.