TORONTO — Ontario Premier Dalton McGuinty says simply updating Canada's equalization program won't address the fiscal imbalance between Ottawa and the provinces.

A published report says a blue-chip panel appointed by all the premiers is recommending changes to the national equalization program.

The Globe and Mail reports the panel also recommends scrapping a rule that reduces health and social transfers to the wealthier provinces.

But McGuinty says that won't address the so-called fiscal imbalance between the federal and provincial governments.

McGuinty says Ontario wants more federal cash for health and social programs.

But he says it's important that federal transfers be increased to benefit all Canadians, not just those living in provinces that receive equalization payments.

Currently, Alberta, Saskatchewan and Ontario pay into the equalization program, which distributes money to poorer provinces to help maintain national program standards.

McGuinty says Ontarians who are unemployed, disabled, in university or in need of a hip replacement receive less funding than Canadians in other provinces.

He says that's unfair, and Ontario wants it resolved.

Ontario and Prince Edward Island are the last two provinces struggling with deficits while Ottawa posts record surpluses year after year.

McGuinty says the fiscal imbalance must be addressed with increased federal transfers to all provinces for health and social programs, not just by updating the equalization plan.

McGuinty says his government doesn't have a copy of the panel's report, which is scheduled to be discussed by the premiers at a meeting in Montreal next week.