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

UBCO Heat teams unable to secure any wins against Mount Royal Cougars

The mens and womens volleyball and basketball teams went 0-4, but all have rematches Saturday night

Rockets held scoreless in loss against Red Deer

Rockets will look for some points in final game of road trip against Edmonton

New maintenance crew to look after Okanagan Connector

Acciona Infrastructure Maintenance Inc. will replace Argo Road Maintenance Inc. in 2019

Kelowna’s definitive Christmas market list

We’ve prepared a list of every market in the Central Okanagan

Your guide to winter light ups around the Okanagan

From Vernon to Summerland, with a stop in Kelowna, we’ve found some activities for you to enjoy

Trudeau offers to help Pacific islands face climate change impact

Prime Minister Justin Trudeau met with the leaders from the Pacific island nations on Saturday during the APEC Summit in Papua New Guinea

‘Toxic’ chosen as the Word of the Year by Oxford Dictionaries

Other top contenders for 2018 include ‘gaslighting’ and ‘techlash’

RCMP bust illegal B.C. cannabis lab

Marijuana may be legal but altering it using chemicals violates the Cannabis Act

Canada defeats Germany 29-10 in repechage, moves step closer to Rugby World Cup

Hong Kong needs a bonus-point win over Canada — scoring four or more tries — while denying the Canadians a bonus point

Avalanche Canada in desperate need of funding

The organization provides avalanche forecasting for an area larger than the United Kingdom

5 B.C. cities break temperature records

Parts of B.C. remain warm, at 10 C, while others feeling chilly

Hodge: The long road to recovery

Kelowna - The first week of recovery I was too consumed in pain to notice the lack of fluid.

Letter: Teaching children to be compassionate is never a bad thing

Kelowna - Teaching Mandarin in schools? That gets my vote.

Letter: Homeless Kelowna citizens need help now, not later

Long term solutions are needed and government has a role to play there.

Most Read