Canada’s Infrastructure Delivery Hits Snags

The federal government’s best laid plans for boosting the economy through infrastructure spending is running into obstacles and is already behind schedule.
Canada’s Infrastructure Delivery Hits Snags
Vehicles makes their way into and out of downtown Toronto along the Gardiner Expressway in Toronto. New toll roads are often cited as important infrastructure improvements in Canada. The Canadian Press/Nathan Denette
Rahul Vaidyanath
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The Canadian federal government’s best-laid plans for boosting the economy through infrastructure spending are running into obstacles and already behind schedule.

A Feb. 2 report from the Office of the Parliamentary Budget Officer (PBO) called “Following the money” attempts to get a handle on the $11.3 billion that will be allocated over two years via 31 departments and agencies.

PBO Jean-Denis Fréchette told the Standing Senate Committee on National Finance (SSCNF) on Feb. 7 that spending tends to be back-end-loaded and that delays occur at the provincial and municipal levels after the Treasury Board approves the expenditure.

For fiscal year 2016–17 (ending March 31, 2017), roughly $3 billion of the $4 billion is expected to be spent. Some catching up is expected for 2017–18 with $10.4 billion of the $11.3 billion of “Phase 1” of Canada’s new infrastructure plan being spent.

We've got to reduce the duplication.
— John Gamble, President and CEO, ACEC
Rahul Vaidyanath
Rahul Vaidyanath
Journalist
Rahul Vaidyanath is a journalist with The Epoch Times in Ottawa. His areas of expertise include the economy, financial markets, China, and national defence and security. He has worked for the Bank of Canada, Canada Mortgage and Housing Corp., and investment banks in Toronto, New York, and Los Angeles.
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