Transcripts & Minutes - Standing Senate Committee on National Finance (37th Parliament, 1st Session)

Past Session:

THE EFFECTIVENESS OF AND POSSIBLE IMPROVEMENTS TO THE PRESENT EQUALIZATION POLICY

Standing Senate Committee on National Finance

FOURTEENTH REPORT

Chair: The Honourable Lowell Murray, P.C.
Deputy Chair: The Honourable Anne C. Cools

March 2002

APPENDIX A

REVENUE BASES OF THE EQUALIZATION PROGRAM

Revenues Subject to Equalization, 2000/2001 (millions $)

1. Personal income taxes	48,374
2. Business income taxes	13,414
3. Capital taxes	4,769
4. General and miscellaneous sales taxes	28,535
5. Tobacco taxes	2,378
6. Gasoline taxes	5,141
7. Diesel fuel taxes	1,771
8. Non commercial vehicle licenses	2,236
9. Commercial vehicle licenses	986
10. Revenues from the sale of alcoholic beverages	4,091
11. Hospital and medical insurance premiums	1,551
12. Race track taxes	23
13. Forestry revenues	1,777
14. New oil revenues	1,297
15. Old oil revenues	302
16. Heavy oil revenues	207
17. Mined oil revenues	876
18. Third-tier oil revenues	271
19. Heavy third-tier revenues	76
20. Natural gas revenues	7,849
21. Sales of crown leases	1,210
22. Other oil and gas revenues	407
23. Mineral resources	485
24. Water power rentals	880
25. Insurance premiums	1,472
26. Payroll taxes	6,681
27. Provincial-local property taxes	33,576
28. Lottery ticket revenue	1,789
29. Other games of chance revenues	3,666
30. Miscellaneous provincial-local taxes and Revenue	9,375
31. Shared revenues: Offshore activities/Newfoundland	26
32. Shared revenues: Offshore activities/Nova Scotia	3
33. Shared revenues: Preferred Share Division	122

Total	185,616

Source: Canada, Department of Finance, Federal-Provincial Relations Division, October 2001.

APPENDIX B

THE MACRO FORMULA AND PROVINCIAL ENTITLEMENTS

SERIES 1

Equalization Entitlements – RTS (Current) and Five Macro Variables Using a Five-Province Standard, No Floor or Ceiling

TABLE 1
Equalization Entitlements – RTS (Current) Methodology
$ Thousands

	NFLD	PEI	NS	NB	QUE	ONT	MAN	SASK	ALB	BC	Receiving
1992-93	886,466	167,876	907,861	827,114	3,588,863	0	872,138	490,467	0	0	7,740,785
1993-94	902,395	175,335	892,850	837,899	3,910,562	0	906,429	490,762	0	0	8,116,232
1994-95	958,386	191,972	1,065,405	927,487	3,965,489	0	1,084,915	308,475	0	0	8,502,129
1995-96	932,246	192,245	1,136,894	876,199	4,306,700	0	1,050,869	263,978	0	0	8,759,131
1996-97	1,029,712	208,347	1,182,328	1,019,376	4,168,563	0	1,126,363	95,206	0	0	8,829,895
1997-98	1,092,832	238,401	1,301,546	1,112,063	4,744,595	0	1,053,377	195,616	0	0	9,738,430
1998-99	1,068,182	237,504	1,221,030	1,112,181	4,394,349	0	1,092,400	476,815	0	0	9,602,461
Total	6,870,219	1,411,680	7,707,914	6,712,319	29,079,121	0	7,186,491	2,321,319	0	0	61,289,063
Source: Department of Finance

TABLE 2
Gross Domestic Product (GDP) at Market Prices
Total Equalization Entitlements
$ Thousands

	NFLD	PEI	NS	NB	QUE	ONT	MAN	SASK	ALB	BC	Receiving
1992-93	944,062	189,487	881,037	818,951	3,212,899	0	670,371	663,905	0	0	7,380,712
1993-94	984,650	182,926	967,500	777,714	3,462,397	0	729,533	585,115	0	0	7,689,833
1994-95	1,000,052	203,591	1,138,004	858,805	3,895,271	0	780,647	575,795	0	0	8,452,167
1995-96	988,762	207,661	1,154,219	745,215	3,958,844	0	707,533	408,697	0	0	8,170,931
1996-97	939,986	173,256	1,174,701	794,752	4,212,507	0	572,660	7,065	0	190,239	8,065,167
1997-98	957,814	184,504	1,219,941	856,496	4,304,364	0	591,382	143,436	0	563,577	8,821,513
1998-99	960,325	233,061	1,290,130	950,215	4,620,443	0	740,957	312,701	0	937,328	10,045,161
Total	6,775,651	1,374,485	7,825,532	5,802,149	27,666,724	0	4,793,083	2,696,715	0	1,691,144	58,625,484
Source: Department of Finance

TABLE 3
Differences Between GDP (Market Prices) and RTS
$ Thousands

	NFLD	PEI	NS	NB	QUE	ONT	MAN	SASK	ALB	BC	Receiving
1992-93	57,596	21,611	-26,824	-8,163	-375,964	0	-201,767	173,438	0	0	-360,073
1993-94	82,255	7,591	74,650	-60,185	-448,165	0	-176,896	94,353	0	0	-426,399
1994-95	41,666	11,619	72,599	-68,682	-70,218	0	-304,268	267,320	0	0	-49,962
1995-96	56,516	15,416	17,325	-130,984	-347,856	0	-343,336	144,719	0	0	-588,200
1996-97	-89,726	-35,091	-7,627	-224,624	43,944	0	-553,703	-88,141	0	190,239	-764,728
1997-98	-135,018	-53,897	-81,605	-255,567	-440,231	0	-461,995	-52,180	0	563,577	-916,917
1998-99	-107,857	-4,443	69,100	-161,966	226,094	0	-351,443	-164,114	0	937,328	442,700
Total	-94,568	-37,195	117,618	-910,170	-1,412,397	0	-2,393,408	375,396	0	1,691,144	-2,663,579
Source: Department of Finance

TABLE 4
Gross Domestic Product (GDP) at Factor Cost
Total Equalization Entitlements
$ Thousands

	NFLD	PEI	NS	NB	QUE	ONT	MAN	SASK	ALB	BC	Receiving
1992-93	950,776	169,637	875,956	841,035	3,379,321	0	569,019	510,151	0	0	7,295,895
1993-94	978,057	163,925	948,647	830,643	3,460,076	0	654,748	558,439	0	0	7,594,535
1994-95	1,010,402	190,200	1,157,300	878,941	3,645,697	0	740,659	550,687	0	0	8,173,885
1995-96	1,003,480	196,252	1,171,013	772,638	3,745,227	0	695,691	423,707	0	0	8,008,009
1996-97	940,299	157,659	1,138,235	763,548	4,534,660	0	528,643	-18,045	0	0	8,044,998
1997-98	960,974	169,544	1,186,213	835,425	4,663,884	0	511,009	97,243	0	190,753	8,615,044
1998-99	938,293	224,185	1,256,272	906,387	4,856,202	0	724,601	285,577	0	746,133	9,937,650
Total	6,782,280	1,271,403	7,733,636	5,828,617	28,285,066	0	4,424,369	2,407,758	0	936,886	57,670,016
Source: Department of Finance

TABLE 5
Differences Between GDP (Factor Cost) and RTS
$ Thousands

	NFLD	PEI	NS	NB	QUE	ONT	MAN	SASK	ALB	BC	Receiving
1992-93	64,310	1,761	-31,905	13,921	-209,542	0	-303,119	19,684	0	0	-444,890
1993-94	75,662	-11,410	55,797	-7,256	-450,486	0	-251,681	67,677	0	0	-521,697
1994-95	52,016	-1,772	91,895	-48,546	-319,792	0	-344,256	242,212	0	0	-328,244
1995-96	71,234	4,007	34,119	-103,561	-561,473	0	-355,178	159,729	0	0	-751,122
1996-97	-89,413	-50,688	-44,093	-255,828	366,097	0	-597,720	-113,251	0	0	-784,897
1997-98	-131,858	-68,857	-115,333	-276,638	-80,711	0	-542,368	-98,373	0	190,753	-1,123,386
1998-99	-129,889	-13,319	35,242	-205,794	461,853	0	-367,799	-191,238	0	746,133	335,189
Total	-87,939	-140,277	25,722	-883,702	-794,055	0	-2,762,122	86,439	0	936,886	-3,619,047
Source: Department of Finance

TABLE 6
Net Domestic Product (NDP) at Factor Cost
Total Equalization Entitlements
$ Thousands

	NFLD	PEI	NS	NB	QUE	ONT	MAN	SASK	ALB	BC	Receiving
1992-93	1,028,703	182,455	878,037	844,422	2,964,098	0	564,230	828,179	0	0	7,290,125
1993-94	1,075,849	178,447	936,203	819,528	3,031,526	0	624,730	879,719	0	0	7,546,002
1994-95	1,116,450	198,144	1,146,229	912,852	3,530,855	0	692,846	837,108	0	0	8,434,485
1995-96	1,089,085	187,677	1,232,269	811,819	3,388,663	0	757,052	734,297	0	0	8,200,861
1996-97	1,077,040	161,018	1,192,570	778,223	4,275,024	0	622,557	385,134	0	0	8,491,567
1997-98	1,121,750	193,624	1,261,798	784,709	4,240,665	0	643,478	609,633	0	140,640	8,996,296
1998-99	1,037,512	227,554	1,334,114	966,320	4,761,108	0	664,987	683,511	0	679,619	10,354,725
Total	7,546,389	1,328,919	7,981,221	5,917,874	26,191,938	0	4,569,880	4,957,582	0	820,258	59,314,061
Source: Department of Finance

TABLE 7
Differences Between NDP (Factor Cost) and RTS
$ Thousands

	NFLD	PEI	NS	NB	QUE	ONT	MAN	SASK	ALB	BC	Receiving
1992-93	142,237	14,579	-29,824	17,308	-624,765	0	-307,908	337,712	0	0	-450,660
1993-94	173,454	3,112	43,353	-18,371	-879,036	0	-281,699	388,957	0	0	-570,230
1994-95	158,064	6,172	80,824	-14,635	-434,634	0	-392,069	528,633	0	0	-67,644
1995-96	156,839	-4,568	95,375	-64,380	-918,037	0	-293,817	470,319	0	0	-558,270
1996-97	47,328	-47,329	10,242	-241,153	106,461	0	-503,806	289,928	0	0	-338,328
1997-98	28,918	-44,777	-39,748	-327,354	-503,930	0	-409,899	414,017	0	140,640	-742,134
1998-99	-30,670	-9,950	113,084	-145,861	366,759	0	-427,413	206,696	0	679,619	752,264
Total	676,170	-82,761	273,307	-794,445	-2,887,183	0	-2,616,611	2,636,263	0	820,258	-1,975,002
Source: Department of Finance

TABLE 8
Net Domestic Product (NDP) at Market Prices
Total Equalization Entitlements
$ Thousands

	NFLD	PEI	NS	NB	QUE	ONT	MAN	SASK	ALB	BC	Receiving
1992-93	1,009,957	203,370	883,560	818,649	2,832,417	0	680,985	959,143	0	0	7,388,082
1993-94	1,069,358	198,100	959,555	760,575	3,095,673	0	714,588	864,135	0	0	7,661,983
1994-95	1,089,405	212,318	1,125,751	884,963	3,832,722	0	745,432	824,740	0	0	8,715,331
1995-96	1,060,219	201,923	1,204,456	774,962	3,682,993	0	761,955	673,447	0	0	8,359,955
1996-97	1,055,559	178,410	1,226,055	811,791	3,945,175	0	658,598	351,693	0	141,148	8,368,429
1997-98	1,093,380	207,049	1,288,787	816,647	3,894,106	0	715,126	583,653	0	575,301	9,174,047
1998-99	1,047,745	237,216	1,361,136	1,007,480	4,505,295	0	692,758	654,360	0	908,819	10,414,809
Total	7,425,623	1,438,386	8,049,300	5,875,066	25,788,380	0	4,969,443	4,911,171	0	1,625,268	60,082,637
Source: Department of Finance

TABLE 9
Differences Between NDP (Market Prices) and RTS
$ Thousands

	NFLD	PEI	NS	NB	QUE	ONT	MAN	SASK	ALB	BC	Receiving
1992-93	123,491	35,494	-24,301	-8,465	-756,446	0	-191,153	468,676	0	0	-352,703
1993-94	166,963	22,765	66,705	-77,324	-814,889	0	-191,841	373,373	0	0	-454,249
1994-95	131,019	20,346	60,346	-42,524	-132,767	0	-339,483	516,265	0	0	213,202
1995-96	127,973	9,678	67,562	-101,237	-623,707	0	-288,914	409,469	0	0	-399,176
1996-97	25,847	-29,937	43,727	-207,585	-223,388	0	-467,765	256,487	0	141,148	-461,466
1997-98	548	-31,352	-12,759	-295,416	-850,489	0	-338,251	388,037	0	575,301	-564,383
1998-99	-20,437	-288	140,106	-104,701	110,946	0	-399,642	177,545	0	908,819	812,348
Total	555,404	26,706	341,386	-837,253	-3,290,741	0	-2,217,048	2,589,852	0	1,625,268	-1,206,426
Source: Department of Finance

TABLE 10
Personal Income
Total Equalization Entitlements
$ Thousands

	NFLD	PEI	NS	NB	QUE	ONT	MAN	SASK	ALB	BC	Receiving
1992-93	611,647	132,575	676,824	700,761	2,084,464	0	572,248	794,971	4,531	0	5,578,021
1993-94	635,048	129,141	691,184	686,499	2,182,509	0	602,341	783,488	0	0	5,710,210
1994-95	638,663	142,632	765,754	747,572	2,487,671	0	556,932	880,509	0	0	6,219,733
1995-96	630,681	135,502	813,168	721,932	2,375,995	0	554,776	787,673	0	0	6,019,728
1996-97	736,387	129,692	821,368	693,067	3,302,273	0	460,677	650,077	0	0	6,793,540
1997-98	783,303	153,778	840,193	702,037	3,250,011	0	504,776	934,025	0	0	7,168,123
1998-99	778,126	170,689	878,445	776,592	3,251,914	0	452,995	772,286	0	516,816	7,597,862
Total	4,813,855	994,009	5,486,937	5,028,459	18,934,836	0	3,704,744	5,603,028	4,531	516,816	45,087,216
Source: Department of Finance

TABLE 11
Differences Between Personal Income and RTS
$ Thousands

	NFLD	PEI	NS	NB	QUE	ONT	MAN	SASK	ALB	BC	Receiving
1992-93	-274,819	-35,301	-231,037	-126,353	-1,504,399	0	-299,890	304,504	4,531	0	-2,162,764
1993-94	-267,347	-46,194	-201,666	-151,400	-1,728,053	0	-304,088	292,726	0	0	-2,406,022
1994-95	-319,723	-49,340	-299,651	-179,915	-1,477,818	0	-527,983	572,034	0	0	-2,282,396
1995-96	-301,565	-56,743	-323,726	-154,267	-1,930,705	0	-496,093	523,695	0	0	-2,739,403
1996-97	-293,325	-78,655	-360,960	-326,309	-866,290	0	-665,686	554,871	0	0	-2,036,355
1997-98	-309,529	-84,623	-461,353	-410,026	-1,494,584	0	-548,601	738,409	0	0	-2,570,307
1998-99	-290,056	-66,815	-342,585	-335,589	-1,142,435	0	-639,405	295,471	0	516,816	-2,004,599
Total	-2,056,364	-417,671	-2,220,977	-1,683,860	-10,144,285	0	-3,481,747	3,281,709	4,531	516,816	-16,201,847
Source: Department of Finance

SERIES 2

Equalization Entitlements- RTS (Current) and Five Macro Variables Using a Ten Province Standard, No Floor or Ceiling

TABLE 1
Equalization Entitlements – RTS (Current) Methodology
$ Thousands

	NFLD	PEI	NS	NB	QUE	ONT	MAN	SASK	ALB	BC	Receiving
1992/93	910,698	173,343	946,248	858,391	3,885,814	0	918,585	532,363	0	0	8,225,442
1993/94	952,891	186,841	973,254	903,189	4,535,981	0	1,003,567	578,148	0	0	9,133,872
1994/95	1,015,292	205,140	1,156,813	1,001,630	4,678,829	0	1,195,419	407,539	0	0	9,660,662
1995/96	975,226	202,336	1,206,776	932,800	4,854,899	0	1,135,333	339,542	0	0	9,646,911
1996/97	1,094,297	224,001	1,289,428	1,106,067	5,005,491	0	1,256,854	212,524	0	0	10,188,662
1997/98	1,156,066	253,988	1,408,067	1,198,079	5,577,292	0	1,182,970	312,121	0	0	11,088,584
1998/99	1,119,028	250,235	1,308,199	1,182,360	5,076,417	0	1,198,346	572,211	0	0	10,706,797
Total	7,223,497	1,495,882	8,288,785	7,182,516	33,614,723	0	7,891,075	2,954,450	0	0	68,650,929
Source: Department of Finance

TABLE 2
Gross Domestic Product (GDP) at Market Prices
Total Equalization Entitlements
$ Thousands

	NFLD	PEI	NS	NB	QUE	ONT	MAN	SASK	ALB	BC	Receiving
1992-93	920,750	184,228	844,105	788,861	2,927,209	0	625,686	623,600	0	0	6,914,437
1993-94	972,823	180,231	948,670	762,423	3,315,920	0	706,782	564,648	0	0	7,451,496
1994-95	988,505	200,920	1,119,456	843,761	3,750,524	0	758,224	555,694	0	0	8,217,085
1995-96	977,736	205,072	1,136,293	730,695	3,818,215	0	685,865	389,313	0	0	7,943,189
1996-97	944,968	174,463	1,182,963	801,439	4,277,067	0	582,726	16,115	0	224,644	8,204,385
1997-98	974,018	188,498	1,247,238	878,538	4,517,749	0	624,591	173,292	0	679,144	9,283,067
1998-99	967,446	234,844	1,302,337	960,043	4,715,958	0	755,794	326,060	0	989,449	10,251,931
Total	6,746,246	1,368,255	7,781,060	5,765,760	27,322,642	0	4,739,668	2,648,722	0	1,893,237	58,265,590
Source: Department of Finance

TABLE 3
Differences Between GDP (Market Prices) and RTS
$ Thousands

	NFLD	PEI	NS	NB	QUE	ONT	MAN	SASK	ALB	BC	Receiving
1992-93	10,052	10,885	-102,144	-69,530	-958,605	0	-292,899	91,237	0	0	-1,311,004
1993-94	19,932	-6,610	-24,584	-140,766	-1,220,061	0	-296,785	-13,500	0	0	-1,682,375
1994-95	-26,787	-4,220	-37,357	-157,869	-928,305	0	-437,195	148,155	0	0	-1,443,578
1995-96	2,511	2,736	-70,483	-202,105	-1,036,683	0	-449,468	49,771	0	0	-1,703,722
1996-97	-149,329	-49,537	-106,465	-304,628	-728,424	0	-674,128	-196,410	0	224,644	-1,984,277
1997-98	-182,049	-65,489	-160,829	-319,541	-1,059,543	0	-558,380	-138,829	0	679,144	-1,805,517
1998-99	-151,582	-15,392	-5,863	-222,317	-360,459	0	-442,552	-246,151	0	989,449	-454,866
Total	-477,251	-127,627	-507,725	-1,416,756	-6,292,081	0	-3,151,407	-305,728	0	1,893,237	-10,385,339
Source: Department of Finance

TABLE 4
Gross Domestic Product (GDP) at Factor Cost
Total Equalization Entitlements
$ Thousands

	NFLD	PEI	NS	NB	QUE	ONT	MAN	SASK	ALB	BC	Receiving
1992-93	943,693	168,039	864,735	831,893	3,292,521	0	555,442	497,905	0	0	7,154,229
1993-94	983,261	165,111	956,933	837,371	3,524,529	0	664,758	567,445	0	0	7,699,408
1994-95	1,011,984	190,566	1,159,841	881,002	3,665,527	0	743,731	553,441	0	0	8,206,092
1995-96	1,003,119	196,168	1,170,426	772,162	3,740,621	0	694,981	423,072	0	0	8,000,549
1996-97	970,054	164,872	1,187,578	803,488	4,920,254	0	588,763	36,004	0	54,909	8,725,922
1997-98	1,003,989	180,146	1,258,674	893,936	5,230,325	0	599,164	176,497	0	497,532	9,840,263
1998-99	968,879	231,844	1,308,706	948,603	5,266,486	0	788,331	342,960	0	970,016	10,825,826
Total	6,884,978	1,296,745	7,906,893	5,968,456	29,640,263	0	4,635,171	2,597,324	0	1,522,457	60,452,288
Source: Department of Finance

TABLE 5
Differences Between GDP (Factor Cost) and RTS
$ Thousands

	NFLD	PEI	NS	NB	QUE	ONT	MAN	SASK	ALB	BC	Receiving
1992-93	32,995	-5,303	-81,513	-26,497	-593,292	0	-363,143	-34,458	0	0	-1,071,213
1993-94	30,370	-21,730	-16,320	-65,818	-1,011,452	0	-338,809	-10,704	0	0	-1,434,464
1994-95	-3,308	-14,574	3,029	-120,628	-1,013,302	0	-451,689	145,901	0	0	-1,454,571
1995-96	27,893	-6,168	-36,350	-160,638	-1,114,278	0	-440,352	83,530	0	0	-1,646,362
1996-97	-124,242	-59,129	-101,850	-302,579	-85,237	0	-668,090	-176,520	0	54,909	-1,462,740
1997-98	-152,078	-73,842	-149,393	-304,143	-346,967	0	-583,806	-135,624	0	497,532	-1,248,321
1998-99	-150,149	-18,391	506	-233,757	190,069	0	-410,014	-229,251	0	970,016	119,029
Total	-338,519	-199,137	-381,892	-1,214,061	-3,974,460	0	-3,255,904	-357,126	0	1,522,457	-8,198,641
Source: Department of Finance

TABLE 6
Net Domestic Product (NDP) at Factor Cost
Total Equalization Entitlements
$ Thousands

	NFLD	PEI	NS	NB	QUE	ONT	MAN	SASK	ALB	BC	Receiving
1992-93	1,000,109	176,004	832,736	807,514	2,613,669	0	509,419	778,741	0	0	6,718,191
1993-94	1,057,049	174,164	906,270	795,222	2,798,690	0	588,566	847,186	0	0	7,167,147
1994-95	1,098,218	193,926	1,116,943	889,097	3,302,305	0	657,441	805,369	0	0	8,063,298
1995-96	1,072,294	183,734	1,204,970	789,708	3,174,507	0	724,055	704,778	0	0	7,854,046
1996-97	1,077,009	161,010	1,192,519	778,181	4,274,622	0	622,494	385,078	0	0	8,490,913
1997-98	1,137,055	197,396	1,287,581	805,529	4,442,216	0	674,845	637,833	0	249,798	9,432,253
1998-99	1,041,738	228,612	1,341,359	972,153	4,817,797	0	673,793	691,440	0	710,553	10,477,446
Total	7,483,473	1,314,846	7,882,378	5,837,403	25,423,806	0	4,450,614	4,850,424	0	960,351	58,203,295
Source: Department of Finance

TABLE 7
Differences Between NDP (Factor Cost) and RTS
$ Thousands

	NFLD	PEI	NS	NB	QUE	ONT	MAN	SASK	ALB	BC	Receiving
1992-93	89,411	2,661	-113,513	-50,877	-1,272,145	0	-409,167	246,378	0	0	-1,507,251
1993-94	104,158	-12,677	-66,983	-107,968	-1,737,291	0	-415,001	269,038	0	0	-1,966,724
1994-95	82,926	-11,214	-39,870	-112,533	-1,376,524	0	-537,978	397,829	0	0	-1,597,364
1995-96	97,068	-18,602	-1,806	-143,092	-1,680,392	0	-411,278	365,235	0	0	-1,792,866
1996-97	-17,288	-62,990	-96,909	-327,886	-730,869	0	-634,360	172,553	0	0	-1,697,748
1997-98	-19,011	-56,591	-120,486	-392,550	-1,135,076	0	-508,125	325,711	0	249,798	-1,656,330
1998-99	-77,289	-21,623	33,160	-210,207	-258,620	0	-524,553	119,229	0	710,553	-229,351
Total	259,975	-181,036	-406,407	-1,345,113	-8,190,917	0	-3,440,461	1,895,974	0	960,351	-10,447,634
Source: Department of Finance

TABLE 8
Net Domestic Product (NDP) at Market Price
Total Equalization Entitlements
$ Thousands


	NFLD	PEI	NS	NB	QUE	ONT	MAN	SASK	ALB	BC	Receiving
1992-93	965,828	193,414	813,649	761,689	2,291,613	0	596,397	882,846	0	0	6,505,436
1993-94	1,034,521	190,161	904,087	715,532	2,664,201	0	647,573	803,847	0	0	6,959,921
1994-95	1,059,001	205,284	1,076,913	845,349	3,451,598	0	686,391	771,812	0	0	8,096,350
1995-96	1,033,549	195,661	1,161,095	739,842	3,342,840	0	709,545	626,560	0	0	7,809,092
1996-97	1,031,679	172,622	1,186,455	779,738	3,635,726	0	610,351	308,317	0	0	7,724,888
1997-98	1,082,248	204,305	1,270,035	801,505	3,747,520	0	692,313	563,143	0	495,911	8,856,980
1998-99	1,029,067	232,539	1,329,117	981,700	4,254,749	0	653,840	619,318	0	772,102	9,872,432
Total	7,235,894	1,393,986	7,741,350	5,625,356	23,388,247	0	4,596,409	4,575,844	0	1,268,014	55,825,099
Source: Department of Finance

TABLE 9
Differences Between NDP (Market Prices) and RTS
$ Thousands

	NFLD	PEI	NS	NB	QUE	ONT	MAN	SASK	ALB	BC	Receiving
1992-93	55,130	20,071	-132,600	-96,701	-1,594,201	0	-322,189	350,483	0	0	-1,720,006
1993-94	81,629	3,320	-69,167	-187,657	-1,871,780	0	-355,995	225,699	0	0	-2,173,950
1994-95	43,710	145	-79,899	-156,281	-1,227,231	0	-509,028	364,273	0	0	-1,564,312
1995-96	58,324	-6,675	-45,681	-192,959	-1,512,058	0	-425,788	287,018	0	0	-1,837,819
1996-97	-62,617	-51,379	-102,972	-326,330	-1,369,765	0	-646,503	95,793	0	0	-2,463,774
1997-98	-73,818	-49,682	-138,032	-396,573	-1,829,772	0	-490,658	251,022	0	495,911	-2,231,604
1998-99	-89,961	-17,696	20,917	-200,660	-821,668	0	-544,506	47,107	0	772,102	-834,364
Total	12,397	-101,896	-547,435	-1,557,161	-10,226,476	0	-3,294,665	1,621,394	0	1,268,014	-12,825,829
Source: Department of Finance

TABLE 10
Personal Income
Total Equalization Entitlements
$ Thousands

	NFLD	PEI	NS	NB	QUE	ONT	MAN	SASK	ALB	BC	Receiving
1992-93	567,994	122,727	607,665	644,415	1,549,488	0	488,571	719,496	0	0	4,700,355
1993-94	593,660	119,710	625,287	632,987	1,669,914	0	522,726	711,866	0	0	4,876,150
1994-95	596,089	132,783	697,368	692,103	1,953,996	0	474,259	806,396	0	0	5,352,995
1995-96	590,012	125,952	747,044	668,374	1,857,273	0	474,852	716,172	0	0	5,179,679
1996-97	697,948	120,375	757,625	641,472	2,804,153	0	383,013	580,254	0	0	5,984,839
1997-98	748,126	145,107	780,935	654,186	2,786,774	0	432,682	869,210	0	0	6,417,022
1998-99	755,345	164,984	839,391	745,148	2,946,325	0	405,527	729,545	0	350,063	6,936,328
Total	4,549,173	931,638	5,055,315	4,678,686	15,567,923	0	3,181,630	5,132,940	0	350,063	39,447,367
Source: Department of Finance

TABLE 11
Differences Between Personal Income and RTS
$ Thousands

	NFLD	PEI	NS	NB	QUE	ONT	MAN	SASK	ALB	BC	Receiving
1992-93	-342,704	-50,616	-338,583	-213,976	-2,336,326	0	-430,014	187,133	0	0	-3,525,086
1993-94	-359,231	-67,131	-347,966	-270,202	-2,866,067	0	-480,842	133,717	0	0	-4,257,722
1994-95	-419,203	-72,357	-459,445	-309,527	-2,724,834	0	-721,160	398,857	0	0	-4,307,668
1995-96	-385,214	-76,383	-459,732	-264,426	-2,997,626	0	-660,481	376,629	0	0	-4,467,232
1996-97	-396,349	-103,626	-531,803	-464,595	-2,201,338	0	-873,841	367,730	0	0	-4,203,823
1997-98	-407,941	-108,880	-627,133	-543,892	-2,790,518	0	-750,288	557,089	0	0	-4,671,562
1998-99	-363,683	-85,251	-468,809	-437,212	-2,130,092	0	-792,819	157,334	0	350,063	-3,770,469
Total	-2,674,324	-564,244	-3,233,470	-2,503,830	-18,046,800	0	-4,709,445	2,178,489	0	350,063	-29,203,561
Source: Department of Finance

WITNESSES LIST

October 17, 2001

APPEARING:

Peter Mesheau, Minister of Finance of New-Brunswick

From the Government of New-Brunswick:
John Mallory, Deputy Minister

October 18, 2001

APPEARING:

Roger Grimes, Prime Minister of Newfoundland and Labrador

Joan Marie Aylward, Minister of Finance and President of Treasury Board

October 24, 2001:

As an individual:
Ken Boessenkool

From the Government of P.E.I. :
Patricia Mella, Provincial Treasurer P.E.I.
John Palmer, Director of Economics, Statistics and Federal Fiscal Relations

October 30, 2001

From Queen’s University:
Dan Usher

October 30, 2001

From the Canadian Union of Public Employees:
Paul Moist, General Vice-President
Wayne Lucas, General Vice-President
Heather Farrow, Senior Research Officer
Jane Stinson, Research Director

October 31, 2001

From Queen’s University:
Robin Boadway

November 6, 2001

APPEARING:

Neil Leblanc, Minister of Finance of Nova Scotia

From the Government of Nova Scotia:
Elizabeth A. Cody, Executive Director, Fiscal & Economic Policy, Nova Scotia Finance Department

November 7, 2001

APPEARING:

Gregory Selinger, Minister of Finance of Manitoba

From the Government of Manitoba:
Ron Neumann, Director of Intergovernmental Finance

From the University of Quebec:
Michel Boucher, École nationale d’administration publique

November 20, 2001

From the University of Alberta:
Paul Boothe