Canadian Stimulus Package in Budget 2009

The 2009 budget released by the Government of Canada includes an economic stimulus plan called Canada's Economic Action Plan, which outlines almost C$12 billion in new infrastructure funding. It is intended to create or maintain up to 190,000 jobs for Canadians by the end of 2010 and provides a total stimulus of 1.9% of the Canadian GDP this year.

Of this C$12 billion, just under a half is going to upgrading and replacing infrastructure

• $4 billion over two years to restore aging infrastructure.
• Up to $500 million over the next two years to accelerate infrastructure projects in small communities..
• $407 million for improvements to VIA Rail service.
• $72 million over five years to improve railway safety.
• $130 million to Parks Canada for Trans-Canada Highway twinning.
• $212 million to renew the Champlain Bridge in Montréal.
• $57 million for the renewal of other key federal bridges across Canada.

But for some of the infrastructure funds there are strings attached. Some of these allocations requires matching provincial and municipal government funding, so that the actual funding from all levels of government is significantly higher than the Federal contribution.   The legislation requires that the provinces have to contribute to local infrastructure projects.  This is similar to the US where much of the stimulus spending requires matching funds from the states.  In addition, cities and municipalities will have to contribute one-third of the costs of local infrastructure projects. Municipal governments don't have a lot of money these days, so this requirements could severely limit how much of this money actually gets spent.

In addition a significant amount of money has been allocated to clean energy research

• $1 billion for clean energy research, development and demonstration projects.

Some of these investments are targetted on improving Canada’s environment including:

• $1 billion for green infrastructure projects.
• $1 billion over two years for renovation and energy retrofits to social housing.
• $300 million over two years to the ecoENERGY Retrofit program.
• $1 billion for clean energy research, development and demonstration projects.
• $87 million over two years for key Arctic research facilities.
• $245 million over two years for the cleanup of federal contaminated sites.
• $10 million to improve government environmental reporting