Equalization payments are federal government transfers to provinces aimed at ensuring all Canadians have access to comparable public services, regardless of their province of residence, according to CBC and The Canadian Encyclopedia. They are based on a formula that considers each province's ability to generate its own revenues, with payments made to provinces with weaker fiscal capacities according to Library of Parliament. In 2024-2025, Alberta, British Columbia, and Saskatchewan did not receive equalization payments. These provinces have higher fiscal capacities, meaning they are able to generate more revenue on their own. Equalization payments are made to provinces with lower fiscal capacities to help ensure a minimum level of public service delivery across the country. The western Provinces have long held that equalization payments favor the east and are unfair. So let us break it down. Each of the 3 western provinces have lower population but generate huge GDP revenue. From revenue generated, these provinces have potentially more than enough income to handle fiscal responsibility for it's population. The 3 Territories have both low population numbers and low to almost non-existant revenues. PEI, Newfoundland/Labrador, New Brunswick have more of a seasonal economy that booms in summer and busts in winter and moderate population. Manitoba and Nova Scotia have much larger population so much more fiscal demand. That leaves Ontario and Quebec which has the lion share of all Canada's population. Fiscal demand to provide basic services for such a large population is not attainable from revenues even though they produce high GDP earnings.