3 GOVERNMENT SPENDING ON TRANSPORTATION

OVERVIEW OF EXPENDITURES AND REVENUES BY MODE

The following summarizes consolidated federal expenses, as well as expenditures by provincial/territorial and local governments, netted of transfers received from other levels of government from 2002/2003 to 2006/07. Table 3-5 shows transport expenditures and revenues by mode and level of government for this period. See Addendum Table A3-5 for the same information over a greater time series.

In 2005/06, total government spending on roads rose 11.9 per cent to $17.4 billion, following a 7.9 per cent increase in 2004/05. Road spending accounts for 72 per cent of overall spending on transportation. Road expenditures have risen steadily at an average annual rate of 5.8 per cent for the past five years. Revenues from road users were $14.3 billion in 2005/06 for net expenditures of $3.1 billion.

Public funding for transit systems was $3.3 billion in 2005/06, up $445 million, or 15.5 per cent, and accounted for 13.7 per cent of all government expenditures on transportation.

In 2005/06, the air mode accounted for $847 million, a drop of $68 million, or 7.4 per cent. Air mode expenditures made up 3.5 per cent of gross government spending on transportation. In the last five years, air-related public spending has increased at an average annual rate of 14 per cent, reflecting the new initiatives related to safety and security.

In 2005/06, public spending related to the marine mode increased 10.4 per cent to $1.3 billion. Public spending on marine transportation makes up about five per cent of total government spending.

Also in 2005/06, public spending on rail transportation fell seven per cent to $274 million, the second consecutive yearly drop. Public spending on rail transportation now makes up only 1.1 per cent of total government spending.

The federal and provincial governments spent $2.4 billion on the air, marine and rail modes combined in 2005/06, while taking in $1.3 billion in fees and tax revenues from transport users in these modes.

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. Tables A3-6 and A3-7 in the Addendum detail government spending on transportation by province, and by mode and province, respectively.

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

1. From tables 3-2 and 3-3.
2. 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.
3. From Table 3-4.

6. Forecast at January 31, 2007, of full year.

Government Transportation Expenditures

Total Transportation Revenues by Level of Government

Overview of Expenditures and Revenues by Mode