Assessing the Insurance Properties of the Fiscal Stabilization Program

Published: November 25, 2021


This report assesses the insurance properties of the Fiscal Stabilization Program, its recent changes and proposed modifications.


  • Under the FSP, the federal government provides payments to provincial governments experiencing extraordinary year-over-year declines in their revenues.

  • PBO analysis quantifies the extent of insurance coverage that the current FSP provides, as well as the impact of recent changes and proposed modifications to the FSP.

  • Based on the current structure, in cases where a province experiences a significant decline in total revenues, FSP payments would provide coverage ranging from 4 per cent (Newfoundland and Labrador) to 19 per cent (British Columbia) of all revenue losses, on average.

  • By design, insurance coverage for resource-intensive provinces is well below the coverage the FSP provides to other provinces.

  • Recent changes in 2020 have increased the insurance coverage provided by the FSP, particularly for resource-intensive provinces. Modifications proposed by Canada’s Premiers would further increase FSP insurance coverage.