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Summary
- The money to be spent on various transportation projects, such as building subways, electrified transits, and walkways, over the next eight years.
- The Trudeau government to set up a permanent fund with an annual corpus of C$ 3 billion for future transportation projects.
- The amount to be spent judiciously on both short-term and long-term projects.
The Justin Trudeau government plans to invest C$14.9 billion in public transportation projects for the next eight years that could be a major catalyst in reviving the ailing economy post-COVID-19.
The funding will be provided for all public transit projects, from subways, electrified transit systems to walkways, and cycling pathways.
A permanent fund with an annual corpus of C$3 billion will be set up by 2026 for various infrastructural needs of the provinces and the municipalities in the future, the government said.
Outlining the capital outlay, PM Trudeau said that an amount of C$5.9 billion would be kept aside for the short-term needs and the funds will be released based on a project-to-project basis, starting this year.
The money from the fund would be disbursed after consultations with the respective beneficiaries, which included Indigenous communities, provinces, municipalities, and territories.
Picture Courtesy: Pixabay. Am old bridge building in Vancouver, Canada.
Projects to Support COVID Recovery
Trudeau stressed that Canada needs efficient and modern public transit systems that can cater to both urban and rural requirements. The idea is also to create activities that would help create jobs and revive the COVID-hit economy.
Besides, an efficient transit system would also help achieve Canada’s climate goals, he added.
Canada has spent C$13 billion in public transit projects since 2015. The government has also kept an additional C$10 billion in reserve for transit systems as part of the Canada Plan. But that funding would expire in the next six years.
Increased government spending in infrastructural projects had been one of the long-standing demands of the municipalities. Revenues from public transportation systems had declined during the pandemic, leaving the local governments cash-strapped for new projects.
Diverting funds from other essential projects would have put additional stress on the state budget. The latest measure would ensure steady funds for the development of cities and towns in Canada.
