Rural Equalization is an Alberta program providing financial support to smaller rural municipalities with limited assessment bases. The program recognizes that rural communities face higher per-capita infrastructure costs, lower tax bases, and service delivery challenges compared to urban centres. Equalization grants help ensure rural residents have access to comparable services despite lower local revenue capacity. The program uses formulas considering assessment per capita, population, and other factors to allocate funding. Similar equalization concepts exist in other provinces under various names. Equalization programs address horizontal fiscal imbalances—differences in fiscal capacity between municipalities within the same province.