Filling the gap

This Mowat Note examines the balance between what Ontarians pay to the federal government and the amount returned in services and transfers to Ontario and Ontarians. We find that based on the latest available figures, Ontarians transfer approximately $11B on net to the rest of Canada. This transfer is equivalent to 1.9% of the province's GDP. This can be referred to as the gap between what Ontarians contribute to the federal government and what is returned to the province in the form of transfers and spending. This gap exists despite the fact that Ontario's fiscal capacity is below the Canadian average.