The Conservative government outlined $53.5 billion in spending over 10 years for provincial, territorial and local infrastructure projects in the federal budget released today (March 21).

As part of the plan, the renewed Building Canada Fund will consist of $14 billion over 10 years to support infrastructure projects “of national, regional and local significance”, according to budget documents. The fund, which will be launched in 2014-2015, will replace an existing agreement launched in 2007 that is set to expire next year.

“New investments will focus on projects that promote productivity and economic growth such as highways and public transit, and are designed to capitalize on innovative approaches, such as public-private partnerships (P3s),” the budget reads.

Kennedy Stewart, the NDP MP for Burnaby-Douglas, argued the funding actually translates to a decrease in support for infrastructure.

“What they’ve done with existing funds is increase the number of people that are eligible to access them,” he said in a phone interview from Ottawa. “The pool of money has actually been reduced and so there’s more people competing for less money.”

The Building Canada Fund will include a $4-billion component to support projects of national significance, and $10 billion for provincial-territorial infrastructure. It will also include a broader range of categories than the previous plan, such as highways, public transit, drinking water, connectivity and broadband, and innovation, including infrastructure at postsecondary institutions.

The Canadian Centre for Policy Alternatives also criticized the level of funding slated for infrastructure projects.

“The Building Canada Fund has been reduced to $210 million in 2014-15 from its previous level of $1.25 billion a year and is back-end loaded, with 75 percent of expenditures to be spent in or after 2020,” the organization said in a press release. “All other funding for infrastructure in the federal budget is merely a re-announcement of pre-existing programs.”

A $32.2 billion Community Improvement Fund for infrastructure was also outlined in the budget, including an indexed Gas Tax Fund and an incremental GST rebate for municipalities to build roads, public transit, recreational facilities and other community infrastructure. 

The Federation of Canadian Municipalities said the budget delivers “significant gains” for cities.

“Of particular importance in this context, is the government’s decision to index the gas tax transfer,” FCM president Karen Leibovici said in a statement. “This measure alone--the first indexing of a municipal transfer-- will add another $9 billion to the permanent gas tax fund over 20 years.”

Leibovici praised the renewed funding for housing programs outlined in the federal fiscal plan. The budget includes $119 million in funding over five years for the Homelessness Partnering Strategy, and $253 million per year over the same period for affordable housing.

“The outcomes of the Mental Health Commission of Canada’s At Home/Chez Soi project have shown that providing Housing First services and supports are an effective way to reduce homelessness. This approach aims to move people rapidly from shelters and the streets into stable housing, while providing them with support for underlying mental health or addiction issues,” the budget indicates.

“Building on the successful At Home/Chez Soi project, the Government will continue to work in partnership with provinces and territories, communities, the private sector and other stakeholders, such as the Federation of Canadian Municipalities, to reduce homelessness.”

Leibovici added that what the federal budget is missing is a “definitive roadmap” to erasing the infrastructure deficit.

“However, it does lay the foundation for continued intergovernmental collaboration as economic conditions improve,” she said.

Today’s budget also includes $7 billion in funding over 10 years for First Nations infrastructure, such as roads, bridges, energy systems and other priorities.