Federal Infrastructure Spending, 2016-17 to 2026-27

This note provides additional information related to federal infrastructure spending in Canada between 2016-17 to 2026-27.

Statistics Canada reports on infrastructure spending in Canada and its economic contributions from a National Accounts perspective.[^1] These figures consider the impact of infrastructure spending carried out by the federal government, transfers from the federal government to provinces and their utilization, and infrastructure spending carried out by businesses who could potentially be incentivized by federal investment tax credits.

However, the figures reported by Statistics Canada cannot be easily compared to the Public Accounts, on which the federal government reports its spending and budgetary balance.[^2] Moreover, the Government’s financial tables do not typically identify total federal infrastructure spending on a Public Accounts basis.

To calculate total federal spending on infrastructure historically and to project it forward, we divide infrastructure spending into two streams. The first stream is infrastructure spending directly carried out by the federal government. From Table 1.3, Volume 1 of the Public Accounts, these figures represent the amortization of tangible capital assets. Over the projection horizon, federally owned assets were grown in-line with the assumptions in the 2022 Economic and Fiscal Outlook.

Next, we identified infrastructure spending financed by the federal government through transfer payments. To estimate these transfers, we included infrastructure transfer payments made under the Investing in Canada Plan (IICP) and payments outlined in subsequent budgets and updates[^3]. Over the projection horizon, transfers were adjusted based on anticipated lapse rates[^4].

On a Public Accounts (accrual) basis, we estimate that the Government spent $15.5 billion on infrastructure in 2016-17. In subsequent years, the Government’s infrastructure spending trended higher, rising to $22.8 billion in 2020-21. On average, 65% of infrastructure spending between 2016-17 and 2020-21 was related to the IICP. Based on current projections, infrastructure spending would rise to $32.4 billion by 2026-27.

Public Accounts

Infrastructure Canada

Finance Canada

PBO calculations

Public Accounts

Infrastructure Canada

Finance Canada

PBO calculations

This table shows annual total federal infrastructure spending between 2016-17 and 2020-21 on tangible capital assets on an accrual basis. Spending from 2021-22 onwards are projections.