The Atlantic Provinces Economic Council (APEC) says equalization and other federal transfers are still critically important for Atlantic Canada.

The three major federal transfers to the province are equalization, the Canada Health Transfer, and the Canada Social Transfer, which all provide funding to the Atlantic region.

APEC’s Senior Policy Analyst Fred Bergman says these federal transfers amount to one-third of total revenues in the Atlantic province’s and 10 per cent here in Newfoundland and Labrador. APEC estimates that without these federal transfers, Newfoundland and Labrador’s projected $800-million deficit in 2020/2021 would nearly double.

The Council says the federal Fiscal Stabilization Program is especially important to Newfoundland and Labrador.

The program provides financial assistance to a province that has experienced a decline in revenues. But with a $60 per person cap, the funding can only go so far.

Provincial and Territorial finance ministers unanimously supported changes to the program at a meeting in December.

APEC says if those changes are adopted, it may benefit some Atlantic provinces.