Infrastructure program way behind schedule: PBO report
The federal government’s massive infrastructure spending program continues to lag well behind schedule, with half of planned spending in 2016 alone still not designated toward specific projects, according to a new report.
The Parliamentary Budget Officer, which released an update on infrastructure spending Thursday, collected spending plans from 32 separate government agencies, departments and Crown corporations to determine how much of the federal government’s 2016 infrastructure budget had been designated toward specific developments. It found that of the $14.4 billion planned in 2016, only $7.2 billion has yet been “attributed to projects.”
The spending delays put a damper on the federal government’s attempt to stimulate the economy ahead of a forecasted slump in economic growth in coming years. A centrepiece of the Trudeau Liberals’ campaign platform was to run major deficits over several years, plowing billions of dollars into major new projects like airports, ports, roads, bridges and light rail expansions in cities.
The PBO report focused on spending under the Trudeau Liberals’ new infrastructure program, and left aside socalled “legacy” infrastructure spending that was rolled out under former prime minister Stephen Harper. The federal Liberals plan to spend roughly $186.7 billion on infrastructure over 12 years, roughly half of which is new spending announced by Finance Minister Bill Morneau in the 2016 budget.
Thursday’s findings come after earlier warnings by the PBO that federal infrastructure spending plans were facing significant delays.
Marc Miller, the parliamentary secretary to the infrastructure minister, responded to criticism during question period Thursday about the federal government’s lagging infrastructure investments.
“The money will be spent as soon as our partners submit their applications,” he said.
The report on Thursday confirmed that much of the economic boost expected from infrastructure spending will now be delayed several years.
“Overall, more than half of the money intended for short-term stimulus will now be spent beyond 2016-17 and 2017-18,” the report said.