A new program in the works

At the same time, however, the most recent federal actions have kept hopes alive that infrastructure will soon make its way back on the government's list of top priorities. The February 2004 budget offered up no additional money for infrastructure explicitly, but included a measure to exempt municipalities from paying GST - a tax expenditure worth about $700 million per year. But, more importantly, the budget also highlighted a pledge that further steps would be taken toward a "New Deal for Communities, and notably, a vow to work with provinces to share with municipalities a portion of gas tax revenues. In a speech in April 2004, the Prime Minister went further, promising that the government would provide a share of the federal gasoline excise tax or "equivalent" to municipalities by year-end. But, while the specific form of how the money will be provided remains uncertain, the amount is likely to be significant - it has speculated that it could be in the order of $2.5 billion per year or roughly half the annual $5-billion federal take from the gasoline tax.