Recommendations for Better Infrastructure Investments

The CD Howe Institute has released a new report with recommendations for improving how Canada’s federal, provincial, and municipal governments invest in infrastructure. Among the findings, CD Howe is recommending that:

Municipal governments:

  • Sell electricity distribution companies to generate infrastructure financing
  • Move to full accrual accounting
  • Rely on users to finance infrastructure and reduce reliance on development charges and reserve funds

Provincial governments:

  • Expand road pricing on highways and roadways wherever feasible, given that gas taxes and vehicle licences do not fully cover government roadway expenses or contribute to relieving congestion

The Federal government:

  • Target infrastructure spending on areas with the greatest intergovernmental spillovers
  • Revise the way that it provides grants to lower levels of government to reduce the potential for blurred accountability or perverse incentives for lower-level governments to spend money on projects with limited benefit
  • Reconsider it’s plans for an Infrastructure Bank


You can find a full copy of this report here.



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