CALGARY – Take a look at the chart above: a single glance is enough to understand why a “secessionist wind” has been blowing in Alberta for a while now.
Every year, the Prairie (and oil) province sends to the federal government in Ottawa, through taxes and other payments, significantly more than it receives back in federal transfers and spending. This imbalance results in a substantial net contribution to national finances.
As shown in the chart, between 2007/08 and 2026/27, Alberta’s net contribution is estimated at $321.9 billion, nearly four times that of British Columbia ($87.8 billion) and more than five times that of Ontario ($59.6 billion). The other seven Canadian provinces are net recipients over the same period, receiving more federal funds than they contribute through tax revenues.
The study – produced by the Fraser Institute: an independent, non-partisan Canadian public policy think tank – also presents a simple calculation: Canadian taxpayers living outside Alberta would need to pay on average $1,007 more per year in income taxes to maintain current federal spending levels, were it not for Alberta’s substantial net contribution to Ottawa’s finances.
Therefore, if Alberta were ever to leave Canada and become independent (on October 19, voters in the province will be asked to consider the idea of initiating a process that could lead to independence), the consequences for the rest of Canada would be significant.
But, according to the authors of the study, Tegan Hill and Nathaniel Li, many Canadians are not fully aware of the scale of Alberta’s contribution to federal finances and the benefits it provides to residents of other provinces. “Many Canadians don’t realize what a sizeable contribution Albertans make to federal finances and how taxpayers in other provinces benefit from it,” says Tegan Hill, Director of Alberta Policy at the Fraser Institute and co-author of the report, titled “Illustrating Albertans’ Contribution to the Rest of Canada” (the presentaiton page of the report is here). “As Canadian federalism increasingly takes centre stage in many of the country’s important policy discussions, it is important that all Canadians and policymakers understand the significant contribution Albertans make every year to federal finances and how Canadians in other provinces benefit from that” Hill concludes.
To read or download the full study, click here: illustrating-albertans-contribution-to-the-rest-of-canada
