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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

OVERVIEW OF EXPENDITURES AND REVENUES BY MODE

This section summarizes consolidated federal expenses and expenditures by the provincial/territorial and local governments, netted of transfers received from other levels of government from 1998/99 to 2002/03. Table 3-5 shows transport expenditures and revenues by mode and level of government for this period.

TABLE 3-5: TRANSPORT EXPENDITURES/REVENUES BY MODE AND LEVEL OF GOVERNMENT, 1998/99 – 2002/03

  (Millions of dollars)
  1998/99 1999/2000 2000/01 2001/02 2002/03F
Federal Operating & Maintenance, Capital and Subsidies1
Air 594 356 364 469 618
Marine 692 799 804 792 794
Rail 252 221 282 360 309
Road 536 396 323 403 548
Other/Overhead 233 222 234 300 268
Subtotal 2,307 1,995 2,007 2,324 2,537

Provincial/Territorial/Local2
Air 75 62 72 72 N/A
Marine 120 1,259 176 183 N/A
Rail 2 5 21 27 N/A
Road 11,398 12,291 12,598 13,317 N/A
Transit 3,085 2,554 2,591 2,747 N/A
Other/Overhead 323 401 511 545 N/A
Subtotal 15,003 16,577 15,970 16,891 N/A

Total Expenses: All Government Levels
Air 669 423 437 541 N/A
Marine 812 2,059 980 975 N/A
Rail 254 226 302 387 N/A
Road 11,934 12,687 12,922 13,720 N/A
Transit 3,085 2,554 2,591 2,747
Other/Overhead 556 623 745 845 N/A
Subtotal 17,310 18,572 17,977 19,215 N/A

Government Revenues from Transport Users
Road users 12,724 12,848 12,704 12,897 N/A
Rail, air and marine 1,174 936 884 869 N/A
Multimodal 14 16 17 11 N/A
Total 13,912 13,800 13,605 13,777 N/A

Note: N/A = Not available. More details are available in the Addendum on Transport Canada’s Web site (www.tc.gc.ca).
1 Transport Canada; Main Estimates and Public Accounts of the federal departments concerned.
2 Provincial/territorial departments of transportation; Transport Canada. Many provinces have moved to unconditional grants to local governments. For this reason, transportation transfers may be under reported. Net expenses by local governments are only netted against transfers reported by provincial governments. Statistics Canada, Public Institutions Division; data are on a calendar year basis.
F Forecast at January 31, 2003, of full year.

Sources: Transport Canada; Fisheries and Oceans Canada; Provincial/territorial departments

Total government spending on roads has risen by 4.8 per cent per year since 1998/99, reaching $13.7 billion in 2001/02. Road expenditures now account for 71 per cent of overall spending on transportation.

Public funding on transit systems peaked at $3.1 billion3 in 1998/99 but then declined to $2.6 billion in the following year. Spending has since rebounded to $2.7 billion in 2001/02. In that year, public spending on transit systems accounted for 14 per cent of all government expenditures on transportation, compared with 18 per cent in 1998/99.

In 2001/02, the air mode accounted for 2.8 per cent of gross government spending on transportation. Air-related public spending, which had been declining until 1999/2000, has since recovered by 28 per cent. Much of the growth is related to safety and security initiatives. Public spending related to the marine mode, after excluding the transfer of the BC Ferry debt to the provincial government, continues to hover around $1 billion. The share of the marine mode of public spending on transportation reached five per cent in 2001/02, a level that has not changed significantly since the mid-1990s. Public spending on rail has grown by 15 per cent per year since 1998/99, accounting for two per cent of gross government spending on transportation in 2000/01. Although rail passenger subsidies declined in 2001/02, they still make up about 80 per cent of total spending on rail. In 2001/02, the federal and provincial governments spent $1.9 billion on the air, marine and rail modes combined, while generating $0.9 billion in fees and revenues from transport users.

The category "Other/Overhead" in Table 3-5 includes overhead expenses by all levels of government and expenditures related to multimodal activities. About four per cent of government transportation spending falls under this category.

Government Transportation Expenditures

Total Transportation Revenues by Level of Government

Overview of Expenditures and Revenues by Mode


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