Stakes are huge as Liberal government moves forward on Canad As the federal Liberal government prepares to deliver its first budget on Tuesday, behind the scenes it has been slowly laying the groundwork for a mammoth, multibillion-dollar undertaking that could revolutionize how infrastructure projects are planned and funded in Canada.
Solving Canada’s economic woes sounded so easy during the election campaign. The Trudeau Liberals promised a $125-billion infrastructure plan — billed as the biggest in Canadian history — that would “kick start” the economy and, they’re expected to follow through now that they’re in power.
We’ll get our first detailed look at what the Liberals actually have in mind on March 22 when they release the federal budget in Ottawa. But in the meantime it’s worth thinking about the infrastructure promise: Can a federal government spend its way to economic Nirvana?
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A federally backed Canada Infrastructure Bank (CIB) that would make it easier and more affordable for municipal and provincial governments to finance capital projects was a key election promise by Prime Minister Justin Trudeau and the Liberals.
While it’s expected the budget will address the government’s commitment to create the CIB, the exact structure and mandate of the CIB — including how project financing and approval would work and whether it will be a Crown corporation — won’t be determined until the coming months.
Municipal and provincial governments, large firms and the broader financial markets are closely watching the government’s blueprint for the bank and exactly how it will operate because the stakes are huge: The creation of the CIB could save lower levels of government hundreds of millions of dollars on large capital projects by allowing them to access low-interest financing from the federal government and its top credit rating.
https://news.nationalpost.com/news/canada/canadian-politics/liberal-governments-trumpeted-canada-infrastructure-bank-taking-shape