3 GOVERNMENT SPENDING ON TRANSPORTATION

OVERVIEW OF EXPENDITURES AND REVENUES BY MODE

The following section summarizes consolidated federal expenses, as well as expenditures by provincial/territorial and local governments, netted of transfers received from other levels of government from 2001/2002 to 2005/06. Table 3-5 shows transport expenditures and revenues by mode and level of government for this period.

In 2004/05, total government spending on roads rose 8.0 per cent to $15.8 billion, accounting for 72 per cent of overall spending on transportation. Road expenditures have risen steadily at an average annual rate of 4.9 per cent for the past five years. Revenues from road users were $14.3 billion in 2004/05 for net expenditures of $1.5 billion.

Public funding for transit systems was $2.7 billion in 2004/05, almost unchanged from 2003/04, and accounted for 12 per cent of all government expenditures on transportation.

In 2004/05, the air mode accounted for $946 million, or 4.3 per cent of gross government spending on transportation. In the last five years air-related public spending has increased at an average rate of 18 per cent. This increase in spending reflects the new initiatives related to safety and security.

Public spending related to the marine mode increased 10.7 per cent to $1.2 billion in 2004/05. The share of public spending on transportation in the marine mode is about five per cent.

Public spending on rail transportation fell by 17 per cent to $287 million in 2004/05 and dropped to 1.3 per cent of gross government spending on transportation. The drop is due to reduced VIA Rail subsidies.

The federal and provincial governments spent $2.4 billion on the air, marine and rail modes combined in 2004/05. They took in $1.2 billion in fees and tax revenues from transport users in these modes in the same year.

The category "Other/Overhead" in Table 3-5 includes overhead expenses by all levels of government and expenditures related to multimodal activities. This category accounts for about four per cent of government transportation spending.

TABLE 3-5: TRANSPORT EXPENDITURE/REVENUES BY MODE AND LEVEL OF GOVERNMENT, 2001/02 – 2005/06
Federal Operating and Maintenance, Capital and Subsidies ¹
(Millions of dollars)
	2001/02	2002/03	2003/04	2004/05	2005/06 ^F
Air	474	605	724	852	752
Marine	763	784	833	927	1,041
Rail	363	313	315	255	242
Road	393	456	436	622	433
Transit	2	66	54	29	28
Other/Overhead	316	290	276	280	307
Subtotal	2,312	2,515	2,638	2,966	3,303
Provincial/Territorial/Local ²
Air	81	78	80	94	N/A
Marine	182	205	240	260	N/A
Rail	27	30	31	31	N/A
Road	13,040	13,505	14,164	15,143	N/A
Transit	2,296	2,379	2,678	2,662	N/A
Other/Overhead	442	522	559	728	N/A
Subtotal	16,068	16,720	17,752	18,918	N/A
Total Expenses: All Government Levels
Air	554	683	804	946	N/A
Marine	945	989	1,072	1,187	N/A
Rail	390	343	347	287	N/A
Road	13,433	13,962	14,600	15,765	N/A
Transit	2,299	2,445	2,732	2,691	N/A
Other/Overhead	758	812	834	1,008	N/A
Subtotal	18,379	19,235	20,390	21,884	N/A
Government Revenues from Transport Users ³
Road users	12,926	13,510	14,106	14,295	N/A
Rail, air and marine	837	1,315	1,213	1,246	N/A
Multimodal	4	10	12	16	N/A
Total	13,767	14,832	15,332	15,557	N/A

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

Totals may not add up due to rounding.

From tables 3-2 and 3-3.
Transport Canada; provincial/territorial departments of transportation. Many provinces have moved to unconditional grants to local governments, transportation transfers may therefore be underreported. Net expenses by local governments are netted against transfers reported by provincial governments. Statistics Canada, Public Institutions Division; data are on a calendar year basis.
From Table 3-4.

Forecast at January 31, 2006, of full year.

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

Government Transportation Expenditures

Total Transportation Revenues by Level of Government

Overview of Expenditures and Revenues by Mode