The province of Ontario will receive equalization payments for the first time next year, federal Finance Minister Jim Flaherty announced on Monday.

Flaherty met with the provincial ministers of finance on Monday morning to discuss the global financial crisis, and released the new growth plan for equalization payments next year.

The federal wealth-sharing program has richer provinces provide funds to poorer provinces to ensure they can provide basic government services.

Equalization will grow to $14.2 billion in 2009-10, from $13.6 billion in 2008-09. By expanding at a rate consistent with economic growth, Flaherty said the growth in equalization would be more sustainable than it is currently.

“The Government of Canada will put equalization on a new growth path to ensure that it grows in line with the economy,” he said.

Ontario, which is not receiving any payments in 2008-09, will receive $347 million in 2009-10.

Quebec is the recipient of the largest equalization payment, at $8.36 billion in 2009-10, up from $8.03 billion this fiscal year. Manitoba takes the second largest slice at $2.06 billion both years, and New Brunswick will receive $1.69 billion next year, up from $1.58 billion this year.

Nova Scotia will receive $1.57 billion next year, the same as this year, and PEI will take $340 million in 2009-10, up from $322 this year.

Flaherty added that the federal government would continue to increase transfers in support of health and social programs.

“We will work together to continue to invest strategically in things like infrastructure that will help leverage this economic advantage through difficult times,” he said.

Flaherty also continued to urge provinces and territories to address interprovincial barriers and inefficiencies, and emphasized the need for a common securities regulator.

“Now more than ever, a stronger, more efficient economic union is critical to securing Canada’s full economic potential,” he said. “Like many Canadians, I find it unacceptable that the countries of the European Union are more efficiently integrated in many significant respects than the provinces and territories in our federation.”