Federal-Provincial Fiscal Arrangements Act — F-8 3.72
Fiscal equalization amount 3.72 (1) For the purpose of this section and section 3.71, the fiscal equalization amount for a province for a fiscal year is the average of (a) the greater of zero and the amount determined by the formula (A - B) × C where A is the per capita equalization standard for that fiscal year, B is the aggregate of the average annual per capita yield in that province for each revenue source for that fiscal year, and C is the average annual population of that province for that fiscal year, and (b) the amount determined by the formula D × [(E - F) × G] / H where D is (a) for the fiscal year beginning on April 1, 2006, the product obtained by multiplying $10,900,000,000 by 1.035, and (b) for each subsequent fiscal year, the product obtained by multiplying the amount computed for the immediately preceding fiscal year by 1.035, E is the five-province per capita equalization standard for that fiscal year determined under subsection (3), F is the aggregate of the average annual per capita yield in that province for each revenue source for that fiscal year, G is the average annual population of that province for that fiscal year, and H is the aggregate of the amount for each of the provinces determined by the formula (I - J) × K where I is the five-province per capita equalization standard for that fiscal year determined under subsection (3), J is the aggregate of the average annual per capita yield in the province for each revenue source for that fiscal year, and K is the average annual population of the province for that fiscal year. Clarification — paragraph (1)(a) (2) For the purposes of paragraph (1)(a), the Minister shall determine the per capita equalization standard for a fiscal year by computing the fiscal equalization amount for each province for that fiscal year in the manner described in that paragraph and shall, in making that determination, ensure that (a) the amount determined by the following formula would be the same with respect to every province for which a fiscal equalization amount is greater than zero: A + (B / C) where A is the aggregate of the average annual per capita yield in that province for each revenue source for that fiscal year, B is the fiscal equalization amount for that province for that fiscal year, and C is the average annual population of that province for that fiscal year; and (b) the aggregate of the fiscal equalization amounts for all provinces for which the fiscal equalization amount is greater than zero for that fiscal year would be equal to (i) for the fiscal year beginning on April 1, 2006, the product obtained by multiplying $10,900,000,000 by 1.035, and (ii) for each subsequent fiscal year, the product obtained by multiplying the amount computed for the immediately preceding fiscal year by 1.035. Clarification — paragraph (1)(b) (3) For the purposes of paragraph (1)(b), (a) the five-province per capita equalization standard for a fiscal year is the amount determined by the formula (A + B + C + D + E ) / F where A is the product of the average annual population of Ontario for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in respect of Ontario for that fiscal year, B is the product of the average annual population of Quebec for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in respect of Quebec for that fiscal year, C is the product of the average annual population of Manitoba for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in respect of Manitoba for that fiscal year, D is the product of the average annual population of British Columbia for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in respect of British Columbia for that fiscal year, E is the product of the average annual population of Saskatchewan for that fiscal year and the aggregate of the average annual per