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Policy Group
Policy Overview
Transportation in Canada Annual Reports

Table of Contents
Report Highlights
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
Minister of Transport
List of Tables
List of 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. Revenues from cost-recovery initiatives are credited to the federal departments' budget, while revenues from other sources are credited to the federal government's Consolidated Revenue Fund. Both are part of this analysis. Excise fuel taxes collected by the federal and provincial governments, as well as provincial licence and other fees, constitute revenues collected from transport users. Table 3-4 highlights government revenues from transport users from 1998/99 to 2002/03.

TABLE 3-4: GOVERNMENT REVENUES FROM TRANSPORT USERS, 1998/99 – 2002/03

  (Millions of dollars)
  1998/99 1999/2000 2000/01 2001/02 2002/03F
Air Transportation Tax1 295 3 - - -
Airport revenues 267 271 250 264 316
Aircraft services 28 27 28 34 30
Air security fee - - - - 375
Marine revenues2 73 79 72 76 80
Leases of hopper cars3 12 13 14 14 10
Other fees and recoveries4 30 38 35 28 32
Total credited 705 431 397 416 843
Federal fuel taxes 4,742 4,786 4,807 4,758 N/A
  Public and non-transport use5,6 430 438 447 439
  Road6 4,138 4,164 4,164 4,136 N/A
  Other modes6 174 185 196 183 N/A
Provincial/territorial fuel taxes 6,831 6,976 6,923 7,060 N/A
  Sales tax equivalent6 581 643 763 729 N/A
  Road6 5,941 5,996 5,852 6,050 N/A
  Other modes6 309 336 308 281 N/A
Provincial/territorial Licences/fees 2,645 2,688 2,687 2,711 N/A
Total tax revenues from road users 12,724 12,848 12,703 12,897 N/A
Total fuel tax revenues from other transport users 483 521 504 494
Total tax revenues from transport users 13,207 13,369 13,207 13,361 N/A
Total tax and fee revenues from transport users 13,912 13,800 13,605 13,777 N/A

Note: N/A = Not available. More yearly data are available in the Addendum on Transport Canada’s Web site (www.tc.gc.ca).
Since 1996/97, the Air transport tax, formerly netted against Transport Canada budget has been credited to the Consolidated Revenue Fund.
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 inter and intra-departmental transfers for services and various regulatory, licensing and administrative fees credited to either Transport Canada or the Consolidated Revenue Fund.
4 Estimated fuel taxes from mobile users off 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 before provincial fuel taxes.
F Forecast at January 31, 2003, of full year.

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

In 2001/02, the most recent year for which budget information is available for all government levels, federal and provincial/territorial governments collected $13.8 billion from transport users through fuel taxes and permit and licence fees. This was 1.3 per cent more than in 2000/01. By far, road fuel taxes make up the largest component of government tax revenues from transportation, averaging $10 billion, or 73 per cent of all government revenues from transport users, from 1998/99 to 2001/02. For a while, road fuel tax revenues were showing the fastest growth. In recent years, the growth of road fuel demand and road fuel tax revenues was moderated by higher fuel prices. Some of this effect was cancelled by a 12 per cent gain in disposable income between 1999 and 2001. Other fuel tax revenues decreased in 2002/03 by $10 million, or two per cent, due to a combination of reduced activity and better fuel efficiency in other modes.

In 2002/03, federal government transportation revenues other than fuel taxes are expected to total $843 million, more than doubling the 2001/02 levels. The new air security fee would yield $375 million.2 Another gain in excess of $52 million was made from airport revenues (mostly lease rents). Marine fees are expected to bring in around $80 million. Other federal revenues not credited to transport, such as the revenues from the leases of hopper cars or the sale of port assets, are also reported in Table 3-4.

Government Transportation Expenditures

Total Transportation Revenues by Level of Government

Overview of Expenditures and Revenues by Mode


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