The $2.2 billion boost hikes spending to roughly $190 billion, one of the largest infrastructure programs in Canadian history
OTTAWA — The federal government is expanding a program that will allow Canadian cities and towns to spend more on infrastructure, signalling an acknowledgement by Ottawa that its $190-billion spending program has been slow to reach municipalities.
“What we’ve seen is we’ve not been able to get as many projects in some places… done as we’d like,” Morneau told reporters on Tuesday. The Gas Tax Fund is a long-standing program that funnels a portion of diesel and gasoline sales across Canada into a pool that funds municipal infrastructure projects.
Unlike previous budgets, the government on Tuesday did not push any planned infrastructure spending to future years. Overall, the government has now spent $19 billion of the total $190 billion planned over 12 years, which includes both Phase 1 and Phase 2 spending. The bank is mandated to spend $35 billion over the next 12 years on green energy, public transit, and infrastructure related to trade and exports.
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