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Considering the differences in revenues generated from the exploitation of natural resources, Alberta generating the highest with $4.32 billion and Prince Edward Island generating the lowest with $4 million (Usher, 1995), would it not seem logical to have both of these responsibilities falling under the same jurisdiction? However, due to arguments posed against the provincial government's ability to control equalization payments, it seems only fitting that the federal government would assume the responsibility. Then considering the current system for calculating and making equalization payments, there are arguments against the efficiency and effectiveness, which would call for a reform (Smart, 2004)...
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