Since 2007, Albertans have contributed disproportionately to Canadian federalism, finds a study published Tuesday by the Fraser Institute.“It’s clear that Albertans continue to disproportionately contribute to the economic success of the country and to federal finances,” said Tegan Hill, director of Alberta Policy at the Fraser Institute and co-author of Understanding Alberta’s Outsized Contribution to Confederation.Overall, from 2007 and 2022, Albertans’ contributed $244.6 billion to the federal government in taxes and other payments in excess of the money Ottawa spent or transferred to Alberta — more than five times as much as was contributed (on net) by either British Columbians or Ontarians. The other seven provinces, and most notably Quebec were net recipients of federalism, meaning the amount of revenues collected by the federal government in those provinces was exceeded by the amount of money spent or transferred by Ottawa back to the provinces.“When Alberta’s economy is strong and prosperous, it benefits the entire nation,” commented Hill. In 2022, Alberta’s inflation-adjusted GDP growth was the fastest in the country (5%), it also reported the fastest private sector employment growth (7.8%), the highest level of business investment per private sector worker ($36,412) and had the highest net interprovincial migration (56,245 people).“It is the economic success of Alberta that leads to Albertans contributing more to Canadian federalism than other provinces, which is absolutely something to be encouraged rather than discouraged,” said Hill..The Fraser Institute offered many other details regarding Alberta's contribution to confederation:When Alberta is economically strong, all Canadians benefit, because money is redistributed to other parts of Canada.In 2022, despite restrictive federal policies, Alberta continued to contribute disproportionately to the federation.Alberta’s 5.0% real GDP growth rate was the fastest in Canada in 2022, accounting for 17.9% of Canada’s real GDP growth, despite being home to 11.6% of the population.In 2022, 56,245 Canadian residents relocated to Alberta, representing more than 75% of total net in-migration within Canada.Alberta reported the fastest private sector employment growth among the provinces (7.8%) in 2022, accounting for 19.2% of private sector jobs created in Canada.Per private sector worker, Alberta attracted $36,412 of business investment, more than double the national average (excluding Alberta).From 2007 to 2022, Alberta’s net contribution to the federal finances totalled $244.6 billion—more than five times as much as BC’s ($46.9 billion) or Ontario’s ($41.9 billion). In 2022, Alberta contributed $14.2 billion more to federal revenues than it received back in federal spending.If Alberta were an “average contributor” based on the other provinces, rather than a large net contributor, the federal government would have had a fiscal shortfall of $16.9 billion in 2022. For perspective, to cover this net revenue loss, the federal GST rate would need to increase from 5.0% to 7.2%.Put simply, without Alberta’s oversized contribution to the federation, Canada would be worse off. To benefit all Canadians, the federal government should focus on supportive policies, not restrictive ones.
