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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 1999/2000 to 2003/04.

TABLE 3-4: GOVERNMENT REVENUES FROM TRANSPORT USERS, 1999/2000 - 2003/04
(Millions of dollars)
  1999/2000 2000/01 2001/02 2002/03 2003/04 F
Airport revenues 271 250 264 319 227
Aircraft services 27 28 34 26 25
Airport security fee 1 - - - 421 400
Marine revenues 2 79 72 70 68 70
Leases of hopper cars 3 13 14 14 15 12
Other fees and recoveries 4 41 35 26 33 31
Total 431 397 408 883 766
Federal fuel taxes 4,786 4,807 4,758 5,014 N/A
   Public and non-transport use 5,6 440 445 437 424  
   Road5 4,138 4,142 4,109 4,396 N/A
   Other modes 5 208 219 211 193 N/A
Provincial/territorial fuel taxes 6,968 6,914 6,958 7,263 N/A
   Sales tax equivalent 6,7 668 799 777 793  
   Road 6 5,993 5,805 5,894 6,184 N/A
   Other modes 6 307 310 287 286 N/A
Provincial/territorial licences/fees 8 2,689 2,738 2,807 2,919 N/A
Total tax revenues from transport users 13,335 13,214 13,309 13,979 N/A
Total tax and fee revenues from transport users 13,767 13,611 13,717 14,862 N/A

Note: N/A = Not available. More yearly data are available 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. Accrual basis.
  2. Includes Coast Guard user fees and sales of marine assets credited to the Consolidated Revenue Fund.
  3. Credited to the Consolidated Revenue Fund.
  4. 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.
  5. Estimated fuel taxes from public administrations and mobile users of the public transport system.
  6. Estimates by Transport Canada (revised).
  7. Estimates based on the sales tax that would have applied to provincial fuel prices.
  8. IThe amounts shown exclude licences and registration fees dedicated to the Société de l'Assurance Automobile du Québec.
  1. Planned and/or actual.

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

In 2002/03, the most recent year for which budget information is available for all government levels, federal and provincial/territorial governments collected $14.9 billion from transport users through fuel taxes and permit and licence fees. This was 7.7 per cent more than in 2001/02. By far, road fuel taxes make up the largest component of government tax revenues from transportation, averaging $10.1 billion, or 73 per cent of all government revenues from transport users, from 1999/2000 to 2002/03. In recent years, the growth of road fuel demand and road fuel tax revenues was moderated by higher fuel prices. However, in 2002/03, road fuel tax revenues increased by 5.4 per cent as a result of higher fuel taxes in most of Atlantic Canada and British Columbia and lower fuel prices, which stimulated demand. Other fuel tax revenues decreased in 2002/03 by $19 million, or 3.9 per cent, due to a combination of reduced activity and better fuel efficiency in other modes.

In 2003/04, federal government transportation revenues other than fuel taxes are expected to total $766 million, down 13.2 per cent from 2002/03 levels. This expected drop is a result of the lowering of air security fees and airport rents. Marine fees are expected to bring in around $70 million. Other federal revenues not credited to transport, such as 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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