What does ERP stand for?
ERP stands for Equalization Receiving Provinces
This definition appears somewhat frequently
See other definitions of ERP
Samples in periodicals archive:
However, as mentioned previously, half of those revenues – at the most – count towards Equalization’s measure of provincial fiscal capacity. Therefore, it is possible for a province to be entitled to an Equalization payment but, after receiving the payment, to have a higher actual fiscal capacity than a province that is not entitled to an Equalization payment. The purpose of the fiscal capacity cap is to eliminate this possibility. Under this cap, which was introduced in 2007, the combination of own-source fiscal capacity – which includes all revenue sources – and the Equalization payment to any Equalization-receiving province.
2 Canada Health Transfer includes transition protection payments from 2007-08 to 2008-09. It includes Canada Health Transfer includes transition protection payments to Newfoundland and Labrador and Nunavut in 2014-15. It also includes separate payments to Ontario in respect of the Canada Health Transfer for 2009-10 ($489 million) and 2010-11 ($246 million) to ensure Ontario receives the same Canada Health Transfer cash support as other Equalization-receiving provinces.
The reason for this protection was because one of the key issues that arose in the context of factoring revenues from natural resources into the equalization equation. When an equalization-receiving province realized big gains in natural resource revenues, it was then penalized through a reduction of its equalization payments, commonly referred to as equalization clawback. As a province’s revenue from natural resources (or any other source) increased, that province saw a comparable reduction in the amount of equalization it received.
In 2007, based on the recommendations of a federal expert panel, the program was returned to formula-driven calculations and enhanced by moving to a standard based on the national average. A fiscal capacity cap was added to ensure that Equalization-receiving provinces.