Equalization Payments in Canada
- This is a preview of the essay.
To view the full text you must login!
Should equalization payments to the "have not provinces" be increased to reduce regional disparity? This is a problem because without these equalization payments, most of the "have not provinces" could not provided the quality of services that the "have provinces" can. Equalization payments is money given from the "have provinces" to the "have not provinces". The basic purpose is to narrow the gap of fiscal diversity. This gap can cause regional disparity. Regional disparity is differences and inequalities between regions. A "have not province" is a province that is below the equalization standard. There are people who say no that equalization payments should be decreased or the current system should be abandoned. My position on this matter is that yes the equalization payments should be increased.
There are numerous causes of regional disparity but I am going to focus on two major ones...