equalization payment

noun

1. a financial grant made by the federal government to a poorer province in order to facilitate a level of services equal to that of a richer province

Example Sentences

In addition, Gregg will pay Grey $15,144 as an equalization payment, but will waive spousal support from her.

From Fox News

“Montreal suffered, and Toronto gained. There is now virtually no financial sector in Montreal. Quebec is the largest recipient of the Canadian federal government’s equalization payment scheme, and it has the largest government debt of any province.”

From BusinessWeek