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Transport Canada
Policy Overview
Transportation in Canada Annual Reports

Table of Contents
1. Introduction
2. Transportation and the Economy
3. Government Spending on Transportation
4. Transportation Safety and Security
5. Transportation and the Environment
6. Rail Transportation
7. Road Transportation
8. Marine Transportation
9. Air Transportation
Figures
Addendum
 
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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. The following analysis includes revenues from cost-recovery initiatives credited to the budgets of federal departments and from other sources credited to the federal government’s Consolidated Revenue Fund. 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 2002/03 to 2006/07. Table A3-4 in the Addendum gives the same information over a greater time series.

In 2005/06, the most recent year for which budget information is available for all government levels, federal and provincial/territorial governments collected $15.7 billion from transport users through fuel taxes and permit and licence fees. This was a 0.5 per cent increase from the previous year.

At $11.2 billion in 2005/06, road fuel taxes are the most important component of government tax revenues from transportation. This was a 0.3 per cent decrease from 2004/05. Other fuel tax revenues rose $22 million in 2005/06 to $515 million. Total fuel taxes made up 75 per cent of total revenues by transport users.

In 2006/07, federal government transportation revenues other than fuel taxes are expected to be $831 million, up from $806 million in 2004/05. The main factors behind this increase are higher airport lease payments. 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.

Provincial revenues from licences and fees are expected to be $3.2 billion, a 2.3 per cent increase.


TABLE 3-4: GOVERNMENT REVENUES FROM TRANSPORT USERS, 2002/03-2006/07

(Millions of dollars)
2002/03 2003/04 2004/05 2005/06 2006/07F
Airport revenues 319 226 253 299 312
Aircraft services 26 23 31 31 34
Air Travellers Security Charge 421 410 383 353 365
Marine revenues1 68 72 74 78 83
Leases of hopper cars2 15 19 16 16 15
Other fees and recoveries3 33 34 30 29 23
Total 883 783 788 806 831
Federal fuel taxes 4,758 4,873 5,081 5,023 N/A
  Public and non-transport use4,5 383 400 402 413 N/A
  Road5 4,163 4,254 4,450 4,370 N/A
  Other modes5 212 219 229 240 N/A
Provincial/territorial fuel taxes 7,347 7,700 7,981 8,163 N/A
  Sales tax equivalent5,6 795 863 962 1,091 N/A
  Road5 6,292 6,604 6,755 6,797 N/A
  Other modes5 261 233 264 275 N/A
Provincial/territorial licences/fees7 2,911 3,024 3,104 3,175 N/A
Total tax revenues from transport users 13,838 14,334 14,802 14,857 N/A
Total tax and fee revenues from transport users 14,721 15,117 15,590 15,663 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.
  1. Forecast at January 31, 2007, of full year.

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


Government Transportation Expenditures

Total Transportation Revenues by Level of Government

Overview of Expenditures and Revenues by Mode


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