The intended purpose of equalization payments is to ensure every Canadian gets a comparable level of government services regardless of where they live. The ‘have’ provinces contribute money to the ‘have-not’ provinces.
Quebec has a big economy, but also a large population. They receive equalization payments because they have a smaller per capita GDP than Alberta, roughly speaking. I’m not current on the exact formula that’s used for equalization payments. The money goes into Quebec’s coffers. Quebec makes budget decisions based on their balance sheet, including funding tuition subsidies and social proprams. Payments don’t end up in one place or another, it’s income that’s used like all other government income.
The fact that Alberta raises more money per capita than the national average and makes equalization payments means they should have a roughly equal ability to fund tuition subsidies or social programs for its population. The reason this doesn’t happen is down to the budget decisions of the Alberta government.
Alberta received equalization payments for a long time, until the 1960s I believe. Depending on what the future holds, they may receive them again in the future. Especially if they don’t diversify from the oil and gas industry. The point of the equalization system is to share Canda’s wealth in an equitable way. Being against it is sort of like someone who complains about their taxes going to healthcare because they don’t go to the hospital. It’s short sighted and selfish.
I don’t have any data at hand, but I know there is a substantial number of Canadians from outside Alberta that have gone there over the years to work in their industries and make the Alberta economy what it is. Why shouldn’t some of that wealth be shared with the rest of Canada that provided that part of the work force?
Finally, I agree that Quebec can be difficult to work with and acts selfishly at times; putting their own interests above those of the rest of the country. However, I think this is a completely separate matter than the topic of equalization payments.
Edit: typo
Can’t forget CN Rail!