3 GOVERNMENT SPENDING ON TRANSPORTATION

TOTAL TRANSPORTATION REVENUES BY LEVEL OF GOVERNMENT

The federal government generates revenues from the use of transportation facilities and services. Revenues from cost-recovery initiatives credited to the budgets of federal departments and revenues from other sources credited to the federal government's Consolidated Revenue Fund are both included in this analysis. Revenues collected from transport users include excise fuel taxes collected by the federal and provincial governments, as well as provincial licence and other fees. Table 3-4 highlights government revenues from transport users from 2001/2002 to 2005/06.

TABLE 3-4: GOVERNMENT REVENUES FROM TRANSPORT USERS, 2001/02 – 2005/06

(Millions of dollars)
	2001/02	2002/03	2003/04	2004/05	2005/06 F
Airport revenues	264	319	226	253	298
Aircraft services	34	26	23	31	30
Air Travellers Security Charge	-	421	410	383	340
Marine revenues 1	70	68	72	74	83
Leases of hopper cars 2	14	15	19	17	15
Other fees and recoveries 3	26	33	34	31	22
Total	408	883	783	799	789
Federal fuel taxes	4,758	4,873	5,081	5,186	N/A
Public and non-transport use 4,5	396	383	400	402	N/A
Road 5	4,176	4,300	4,481	4,576	N/A
Other modes 5	186	190	200	208	N/A
Provincial/territorial fuel taxes	7,012	7,343	7,688	7,813	N/A
Sales tax equivalent 5,6	784	795	863	961	N/A
Road 5	5,981	6,299	6,580	6,584	N/A
Other modes 5	247	249	244	267	N/A
Provincial/territorial licences/fees 7	2,769	2,911	3,043	3,132	N/A
Total tax revenues from transport users	13,359	13,949	14,549	14,767	N/A
Total tax and fee revenues from transport users	13,767	14,832	15,332	15,557	N/A

Notes: N/A = Not available. More yearly data are available on Transport Canada's Web site (www.tc.gc.ca).

1. Includes Coast Guard user fees and sales of marine assets credited to the Consolidated Revenue Fund.
2. Credited to the Consolidated Revenue Fund.
3. Includes air safety fees, other licensing and administrative fees, inter- and intra-departmental transfers for services and various regulatory fees credited to either Transport Canada or the Consolidated Revenue Fund.
4. Estimated fuel taxes from public administrations and mobile users of the public transport system.
5. Estimates by Transport Canada (revised).
6. Estimates based on the sales tax that would have applied to provincial fuel prices.
7. The amounts shown exclude licences and registration fees dedicated to the Société de l'assurance automobile du Québec.

6. Forecast at January 31, 2006, of full year.

Source: Transport Canada; Fisheries and Oceans Canada; Statistics Canada; provincial/territorial departments of transportation

In 2004/05, the most recent year for which budget information is available for all government levels, federal and provincial/territorial governments collected $15.6 billion from transport users through fuel taxes and permit and licence fees. This was a 1.5 per cent increase from 2003/04. At $11.2 billion in 2004/05, road fuel taxes make up the largest component of government tax revenues from transportation. This was a one per cent increase over 2003/04, after increases of over four per cent in each of the two previous years. Other fuel tax revenues rose $31 million in 2004/05 to $475 million. Total fuel taxes made up 75 per cent of total revenues by transport users.

In 2005/06, federal government transportation revenues other than fuel taxes are expected to remain basically the same at $789 million. The main factor behind this is that while airport lease payments are expected to increase by $46 million, revenues from the Air Travellers Security Charge are expected to fall by $43 million. Marine fees are expected to increase to $83 million from $74 million. Table 3-4 also shows other federal revenues not credited to transport, such as revenues from the leases of hopper cars or the sale of port assets.

Government Transportation Expenditures

Total Transportation Revenues by Level of Government

Overview of Expenditures and Revenues by Mode