2016 Federal Budget : investments in Infrastructure, Research and Clean Technology to spur the Canadian economy

The federal government unveiled its 2016–2017 budget on Tuesday, March 22, 2016. Not surprisingly, the government announced a $29.4 billion deficit for the coming year. However, the government commits to investing $120 billion over 10 years in infrastructure, and considerable amounts in clean technology and research.

The Canadian government is also sending out a positive signal to leading-edge sectors by announcing a new budget envelope up to $800 million over four years as of 2017–2018 to support innovation networks and clusters.

Budget highlights impacting Montréal International’s activities

$120 billion over 10 years for social infrastructure, public transit and green infrastructure

Investments in clean technology

  • $62.5 million over two years to support the deployment of infrastructure for alternative transportation fuels, including charging infrastructure for electric vehicles
  • Expanded eligibility for accelerated capital cost allowance for clean technology: electric vehicle charging and electrical energy storage; The government’s goal is to encourage businesses to invest in clean technologies
  • $20 million over eight years, starting in 2018–2019, to create two additional Canada Excellence Research Chairs in fields related to clean and sustainable technology
  • Regional Development Agencies will double their annual aggregate support for clean technology to $100 million per year, starting in 2016–2017
  • Over $1 billion over four years, starting in 2017–2018, to support clean technology, including in the forestry, fisheries, mining, energy and agriculture sectors

Greater investment in research

  • An additional $95 million per year to the granting councils, including $30 million for the Canadian Institutes of Health Research, and $30 million for the Natural Sciences and Engineering Research Council
  • $237.2 million to Genome Canada, $12 million over two years to the Stem Cell Network, and $20 million over three years to the Brain Canada Foundation

Up to $800 million over four years, starting in 2017–2018, to support innovation networks and clusters

  • More details on this matter will be announced shortly

By Francis Langlois
Senior Analyst, Economic Research Division

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