Federal-Provincial Fiscal Arrangements Act — F-8 3.4
oduct of Canada, as determined by the Minister, for the calendar year that ends during the fiscal year in question and for the two previous calendar years. Calculation (6) If the aggregate of the fiscal equalization payments that would be paid for a fiscal year, if the amounts of those payments were determined under subsections (1) to (4) and section 3.2 as if no province had made an election under subsection 3.2(2), exceeds the amount determined under subsection (5), the fiscal equalization payment that may be paid to a province for that fiscal year determined under subsections (1) to (4) and section 3.2 shall be reduced by the amount determined by the formula A × B where A is the lesser of the per capita equalization payment for that province for that fiscal year and the per capita reduction; and B is the average annual population of that province for that fiscal year. Per capita calculation (7) For the purposes of subsection (6), the Minister shall determine the per capita reduction for a fiscal year and shall, in making that determination, ensure that the aggregate of the reductions referred to in that subsection is equal to the amount determined by the formula A – B where A is the aggregate of the fiscal equalization payments that would be paid for that fiscal year, if the amounts of those payments were determined under subsections (1) to (4) and section 3.2 as if no province had made an election under subsection 3.2(2); and B is the amount determined under subsection (5). Adjustment payment (8) If the aggregate of the fiscal equalization payments that would be paid for a fiscal year, if the amounts of those payments were determined under subsections (1) to (4) and section 3.2 as if no province had made an election under subsection 3.2(2), is less than the amount determined under subsection (5), there may be paid to a province for that fiscal year an adjustment payment that is, (a) in the case of a province to which a fiscal equalization payment would be paid for that fiscal year, if the amount of that payment were determined under subsections (1) to (4) and section 3.2, the amount determined by the formula A × B where A is the per capita adjustment for that fiscal year, and B is the average annual population of that province for that fiscal year; and (b) in any other case, the greater of zero and the amount determined by the formula (C + D – E) × F where C is the per capita pre-adjustment equalized fiscal capacity for that fiscal year of the province that has the greatest per capita pre-adjustment equalized fiscal capacity for that fiscal year of the provinces referred to in paragraph (a), D is the per capita adjustment for that fiscal year, E is the per capita pre-adjustment equalized fiscal capacity of the province in question for that fiscal year, and F is the average annual population of the province in question for that fiscal year. Per capita adjustment (9) For the purposes of subsection (8), the Minister shall determine the per capita adjustment for a fiscal year and shall, in making that determination, ensure that the aggregate of the adjustment payments referred to in that subsection is equal to the amount determined by the formula A – B where A is the amount determined under subsection (5); and B is the aggregate of the fiscal equalization payments that would be paid for that fiscal year, if the amounts of those payments were determined under subsections (1) to (4) and section 3.2 as if no province had made an election under subsection 3.2(2). (10) [Repealed, 2013, c. 33, s. 114] 2007, c. 29, s. 62; 2009, c. 2, s. 385; 2013, c. 33, s. 114