Stable Funding

The New Deal for Cities and Communities is not just about money. It is about all orders of government working collaboratively and in harmony in four priority areas of sustainability: environmental; economic; social; and cultural. The New Deal recognizes that cities and communities require stable, long-term and predictable funding. To that end, Budget 2004 provided all municipalities with a 100 per cent GST rebate for municipalities that will provide them with $7 billion in funding over the next ten years. This funding now is benefiting every incorporated municipality in Canada - no matter the size.The budget also accelerated the flow of $1 billion, to smaller communities and First Nations, under the Municipal Rural Infrastructure Program (MRIF).

In February 2005, we took the next major step in allocating $5 billion in gas tax funding over the next five years, by advising each province and territory of their share of the federal gas tax. Our officials are in the field negotiating bilateral agreements with the provinces and territories, which will benefit both large and small communities. We expect to begin signing agreements shortly, with money flowing to municipalities as soon as possible.

News Release:

Government on track to deliver New Deal for Cities and Communities

ALLOCATION TO THE PROVINCES, TERRITORIES AND FIRST NATIONS

OF $5 BILLION OVER 5 YEARS (2005-2010) (in millions)

*Some rows may not add up due to rounding.

Building on success

This new funding will support Environmental Sustainable Municipal Infrastructure (ESMI). It will complement - and not replace - existing federal Infrastructure programs, where $12 billion has been committed over the past decade to help get infrastructure right and contribute to the goal of creating sustainable communities. Each province and territory will work with its cities and communities to identify their priorities, and by doing so, will work toward a broader, national objective of sustainability.

Email this page   Printer-friendly format