Oil price hits provincial revenues but it’s not all bad news

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A new report from the Conference Board estimates that the federal government will lose more than $4 billion in revenue from the lower oil price and the provinces will see a drop of around $10 billion from lost royalties and tax revenue. While Alberta, Saskatchewan and Newfoundland and Labrador will suffer there is better news for the Maritimes, but only in the short term. The report, Regional Shakeup — The Impact of Lower Oil Prices on Canada’s Economy highlights the benefits to oil importing provinces such as Ontario but says that in the longer term there is the potential for equalization payments to fall which would damage provincial finances. 

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