Slicing the pie

Only about one-third of the funds that Canadians send to the federal government go directly towards federal operations and programs. The other two-thirds are redistributed through transfers to provinces and territories, people, and organizations. The effect of these transfers on regional redistribution, with revenues collected in some areas of the country and spent in other areas, is significant. In fact, the combined redistribution through these transfers is greater than the formal redistribution undertaken through the Equalization program.