Gas Tax Fund

The Gas Tax Fund (GTF), a key component of the Building Canada infrastructure plan, is helping to build Canada's communities by providing predictable and long-term funding in support of municipal infrastructure that contributes to cleaner air, cleaner water and reduced greenhouse gas emissions.

The GTF supports environmentally sustainable municipal infrastructure, such as:

• Public transit
• Drinking water
• Wastewater infrastructure
• Green energy
• Solid waste management
• Local roads and bridges

In addition, it benefits communities by providing funding to increase the capacity of communities to undertake long-term planning.

Municipalities can pool, bank and borrow against this funding, providing significant additional financial flexibility. To ensure accountability to Canadians, communities report on their use of the funds on an annual basis.

Investment

The Building Canada plan is delivering $8 billion ($2 billion per year) in new predictable funding for sustainable infrastructure in our cities and communities. From 2007-08 to 2013-14, municipalities will receive a total of $11.8 billion in gas tax funding.

In response to ongoing requests for stable, long-term funding, Budget 2008 announced that the Gas Tax Fund will be extended at $2 billion per year beyond 2013–14 and become a permanent measure. This will allow all municipalities, both large and small, to better plan and finance their long-term infrastructure needs.

Benefits to Canadians