Infrastructure Spending in Canada

According to the statements of Trump and Clinton, both United States presidential candidates support spending on infrastructure. Clinton proposed the creation of an Infrastructure Bank, and Trump has not detailed how he would finance infrastructure spending. While the U. S. prepares for its presidential elections, Canada announced that it will spend $91.4 billion (U. S. dollars; $120 billion Canadian) on capital assets over the next 10 years, according to the Wall Street Journal (October, 3, 2016, p. A2).


Unlike most advanced nations that aim to control spending and manage its percentage of Gross Domestic Product (GDP), Canada has elected to increase its federal deficit to boost growth. Hit with a decline in commodity prices, this oil-rich nation has experienced depressed prices in its major export. The infrastructure bill should boost growth by 0.5% in 2017, claimed the Canadian Finance Minister, Bill Morneau. The bill, which lacks specific projects, includes not only the 40% for infrastructure, but also child benefits and social transfers. Of the nations meeting this week at the International Monetary Fund and the World Bank, Canada ranks sixth of major powers in government debt as a share of GDP. Japan tops the list at 233% and Germany stands at the bottom with debt at 80% of GDP.