CHARLOTTETOWN - Premier Robert Ghiz of Prince Edward Island is calling for changes to the equalization program, saying a cap on the federal wealth-sharing formula should be removed.

In a throne speech Wednesday, the first since Ghiz was re-elected last fall, the Liberal premier says equalization does not recognize the higher cost of delivering public services in small provinces.

"We recognize that the federal government is taking its own measures to deal with its fiscal concerns," said the speech, read by Lt.-Gov. Frank Lewis.

"Nonetheless, there is a constitutional obligation to ensure Islanders can enjoy comparable levels of services at a comparable level of taxation.

"The equalization program -- which should serve to offset fiscal inequities -- has been adjusted with the result that the program does not, in fact, equalize."

The province is objecting to the federal cap on the overall pool of equalization funds brought in as Ontario became a recipient of equalization payments along with five other provinces.

Ghiz said in an interview that by creating the cap, the result was less money for the social services his province needs.

"It's cost our province about $63 million," he said.

"This is about making sure that people who live on Prince Edward Island are still Canadian."

Ghiz is also urging Ottawa to establish a "significant" base level of equalization funding, meaning the formula would recognize that some provinces have a smaller tax base but still face basic costs that have to be covered.

The province is expected to get $337 million this fiscal year in equalization payments from the $15.4 billion program. It is one of six provinces to receive the funds this year.

Ghiz said he intends to lobby Ottawa at every possible opportunity.

A spokeswoman for National Revenue Minister Gail Shea says Ottawa will provide the Island with $510 million in transfer payments, including equalization payments, this year.

"This $510 million represents $3,409 for every man, woman and child in Prince Edward Island. This is the highest amount per person of any province in the country," said the email sent from Shea's office.

The email also says the P.E.I. equalization payment for 2012-13 "is the highest amount ever under the equalization program."

Ghiz is also promising to have a legislature committee examine whether the province should elect senators.

"Let's see what the options are out there," he said.

However, he isn't predicting that Islanders will be electing senators soon.

"It's not a top-of-mind issue, but ... I think we should go out and explore what Islanders think are our best options," he said.

As well, the speech says his government will try to balance the budget. Ghiz said recently that the deficit could reach $80 million, which would be up from the $73.4 million reported in December.

The Liberals won their second-straight majority last October, electing 22 members in the 27-seat legislature.

The Progressive Conservatives have five seats.