New figures in this week’s federal budget suggest billions of dollars from the Liberal government’s vaunted infrastructure program now won’t be spent until after Canadians go to the polls next year. Finance minister Bill Morneau spoke to media following a breakfast event co-hosted by the Canadian Club and the Empire Club in Toronto, on Thursday, March 1, 2018. THE CANADIAN PRESS/Christopher Katsarov

Federal budget details slower than expected trickle of infrastructure money

New figures in this week’s federal budget suggest billions of dollars from the Liberal government’s vaunted infrastructure program now won’t be spent

New figures in this week’s federal budget suggest billions of dollars from the Liberal government’s vaunted infrastructure program now won’t be spent until after Canadians go to the polls next year.

The sluggish pace of federal infrastructure spending has been a persistent burr under the saddle of a government that rode to power on a promise to ramp up spending for roads, bridges, community centres, transit and water systems to stimulate the economy.

Tuesday’s budget showed more than $3.8 billion from Phase 1 of the plan — which was supposed to be spent by the end of the month — won’t be totally out the door until at least 2021.

The second phase of spending, which is still subject to negotiations with the provinces and territories, has also seen its funding moved around: the government now says more than $3 billion won’t be spent until at least 2025, with the majority of that spending to take place in 2028.

Related: Federal budget fosters pharmacare, pot-based drugs

And that might not be the end of it, since the budget also warns that further adjustments may have to be made over time.

A spokesman for Infrastructure Minister Amarjeet Sohi says the new numbers reflect when the government expects to receive expense claims from cities and provinces, a process that often creates a lag between when work takes place and when the federal money is spent.

In some cases, the government won’t receive receipts until after a project is completely finished. In other cases, projects are delayed because of labour strife, bad weather or other factors beyond Ottawa’s control.

Sohi spokesman Brook Simpson said the budget changes reflect that reality.

Related: Federal budget to focus on gender equality

“It is not a reflection of project activity, which is well underway on the majority of the more than 4,000 projects Minister Sohi has approved, and which the Bank of Canada has noted are contributing to the country’s economic growth.”

The Liberals hope to sign funding agreements by the end of this month for $33 billion in upcoming infrastructure spending overseen by Sohi, and have also asked provinces to allocate unspent cash from a fund set up by the previous Conservative government.

The budget shows that just over $1 billion from Conservative funds is being delayed until after next year’s election, with a further $2.4 billion scheduled for beyond 2023.

Jordan Press, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Alberni university zeroes in on disability and poverty

BY MIKE YOUDS SPECIAL TO THE NEWS The road to poverty can… Continue reading

Celebrate cycling in Port Alberni during Bike to Work and School Week

Numerous ‘celebration stations’ are planned for May 28 to June 2

Ahousaht welcomes massive Surfrider Canada conference to Meares Island near Tofino

“It was the first time we’ve all come together.”

Alberni RCMP kept busy with 170 calls over May long weekend

Detachment answers calls from fatal vehicle crash to man with a gun, trailer thefts

Alberni pub owner kicks off new event for car lovers

Car enthusiast Helen Poon debuts Cars and Coffee on May 27

Black Press Media to launch Pipeline Full of Controversy series

Series covers Trans Mountain’s history, science, Indigenous reaction, politics and economics

Abbotsford high school teacher charged with sexual offences involving two youths

Henry Kang, 50, charged with two counts each sex assault and sexual exploitation

Toronto Raptors star to hold basketball camp in B.C.

DeMar DeRozan is hosting a four-day camp for players aged 6-16 at the University of Victoria

Military college students accused of violating Qur’an with bacon

Alleged acts by four cadets from the Royal Military College in Quebec caught on video

Canucks sign top prospect Elias Pettersson to entry-level deal

Slick centre drafted No. 5 overall in 2017 NHL draft

Wildfire northwest of Kamloops jumps to 1,600 hectares overnight

Ground crews and aircraft are responding to an estimated 1,600 hectare wildfire approximately 55 kilometers northwest of Kamloops, near the Deadman Vidette Road.

Former B.C. police chief dies in ATV accident

Ex-Nelson top cop began his career in Vancouver

Referendum in Ireland would repeal strict ban on abortion

Voters throughout Ireland have begun casting votes in a referendum that may lead to a loosening of the country’s strict ban on most abortions.

Lava from Hawaii volcano enters ocean from 3 flows

The Kilauea volcano has been gushing lava on the big island of Hawaii for the past three weeks.

Most Read