OTTAWA – The Government of Canada is providing long-term, predictable funding for infrastructure through a new Building Canada plan to build roads, bridges, public transit and other public infrastructure. New investments will focus on projects that stimulate economic growth, and are designed to capitalize on innovative approaches, such as public-private partnerships (P3s).
The new Building Canada plan is the largest and longest federal investment in provincial, territorial and municipal infrastructure projects in Canadian history—over $53 billion in investments, including over $47 billion in new funding over 10 years, starting in 2014–15.
This funding will be delivered through three key funds:
- The Community Improvement Fund, consisting of the Gas Tax Fund and the incremental Goods and Services Tax Rebate for Municipalities, will provide over $32 billion to municipalities for projects such as roads, public transit and recreational facilities, and other community infrastructure. Gas Tax Fund payments will be indexed at 2 per cent per year starting in 2014–15, with increases to be applied in $100-million increments.
- The new Building Canada Fund will provide $14 billion to support major economic projects of national, regional and local significance across the country.
- The renewed P3 Canada Fund will provide $1.25 billion to continue to support innovative ways to build infrastructure projects faster and provide better value for Canadian taxpayers through public-private partnerships.
An additional $6 billion will be provided to provinces, territories and municipalities under current infrastructure programs in 2014–15 and beyond. In addition, the Government will make significant investments in First Nations infrastructure and in federal infrastructure assets. Overall federal infrastructure funding will total $70 billion over 10 years. This will ensure that Canada’s public infrastructure is world-class and a contributor to job creation, economic growth and productivity for years to come.
Jim Flaherty, Minister of Finance had released the next phase of the government’s plan for jobs, growth and long-term prosperity called Canada’s Economic Action Plan 2013.
The Minister of Finance in a media statement says, “While the Government remains squarely focused on balancing the budget during this Parliament, the Economic Action Plan introduces, among other things, a bold and innovative skills training initiative, the largest and longest federal infrastructure plan in Canadian history, and significant new investments to support manufacturing and innovation in Canada”.
“The Canadian economy continues to create jobs and experience modest growth, yet we still face significant risks from beyond our borders, particularly from the euro area and the United States, our largest trading partner,” said Minister Flaherty. “Economic Action Plan 2013 builds on the strong foundation laid in previous years to connect Canadians with available jobs, to provide long-term predictable funding for infrastructure, and to make significant investments in manufacturing and critical research.”
In this risky and uncertain global economic environment, Canada’s Economic Action Plan 2013 focuses on initiatives that will improve the quality of life for Canadian individuals, families, businesses and seniors.