News - Full StoryBuilding stronger communities across Nunavut with the federal Gas Tax Fund
Doubling of the federal Gas Tax Fund delivers a boost in Nunavut
IQALUIT, Aug. 15, 2019 /CNW/ - Modern public infrastructure is key to promoting economic growth and developing healthy, sustainable communities. That is why the Government of Canada is renewing its commitment to municipalities and Indigenous communities through the federal Gas Tax Fund and delivering much needed support for their local priorities.
Nunavut has received the first of two $8.25 million annual installments of the federal Gas Tax Fund (GTF), along with a top-up of $16.5 million, made available through Budget 2019. This top-up doubles the amount of money for Nunavut communities, enabling them to carry out infrastructure projects that support the well-being of their residents.
The federal GTF is a long-term, indexed source of funding that supports a diverse range of local infrastructure projects across the territory each year. For example, in Pangnirtung and Igloolik, residents are benefitting from cleaner drinking water with upgrades to the local water treatment system. In the City of Iqaluit, roads have become safer thanks to an important paving project. And in Coral Harbour and Kugluktuk, municipal infrastructure has become more energy efficient thanks to upgrades funded by the federal GTF.
This predictable funding, enhanced by a doubling of the 2018-19 GTF allocations, as announced in Budget 2019, is allowing municipalities and Indigenous communities to plan for current and future infrastructure priorities, so they can build the resilient infrastructure of the 21st century that residents deserve, and help ensure that Nunavut remains among the best places in the world to live.
"The Government of Canada is proud to deliver this stable, predictable long-term funding that communities rely on to develop their public infrastructure. By working with other orders of government, we are making significant progress and delivering concrete results for all Canadians. From improving roads, water services and energy efficiency, to enhancing recreation and tourism centres, the federal Gas Tax Fund is helping keep families safe, promote economic development and improve people's quality of life across the country."
The Honourable François-Philippe Champagne, Minister of Infrastructure and Communities
"The Government of Nunavut prioritizes developing and improving infrastructure across the territory in Turaaqtavut, our government's mandate. The federal Gas Tax Fund supports the realisation of our infrastructure projects to the benefit of Nunavummiut, our communities, and the growth and wellness of all of Nunavut."
The Honourable Lorne Kusugak, Minister of Community and Government Services
The federal Gas Tax Fund delivers over $2 billion every year to over 3,600 communities across the country. In recent years the funding has supported approximately 4,000 projects each year.
To help address the short-term infrastructure priorities of municipalities and Indigenous communities, Budget 2019 includes a top-up of $2.2 billion to the federal Gas Tax Fund.
The federal Gas Tax Fund is flexible in allowing communities to apply funding to their most pressing local needs. Communities can invest across 18 different project categories, including recreation, water systems and roads. They can also use the funds immediately for priority projects, bank them for later use, pool the dollars with other communities for shared infrastructure projects, or use them to finance major infrastructure expenditures.
Through its Investing in Canada plan, the Government of Canada is investing more than $180 billion over 12 years in public transit projects, green infrastructure, social infrastructure, trade and transportation routes, and Canada's rural and northern communities.
$2 billion of this funding is supporting infrastructure projects that meet the unique needs of rural and northern communities like facilities to support food security, local access roads and enhanced broadband connectivity. In addition, $400 million is being delivered through the Arctic Energy Fund to advance energy security in the territories.
$4 billion of this funding is supporting infrastructure projects in Indigenous communities.
The plan includes more than $92 billion for funding such as the Gas Tax Fund and more than $95 billion in new funding for infrastructure programs.
To date, more than 48,000 projects have been approved under the plan and the majority of these projects are either underway, or already completed.
2019‒2020 federal Gas Tax Fund allocations in Nunavut
Nunavut's 2019‒20 federal Gas Tax Fund allocations
The Government of Canada has delivered the first of two $8.25 million federal Gas Tax Fund (GTF) installments to Nunavut for the 2019-20 fiscal year.
In addition to the regular installments, Nunavut communities will benefit this year from a top-up to their funding, as announced in Budget 2019. This top-up will accelerate progress and maximize every opportunity to ensure that Canadians in every community across the country continue to see real and timely results in the renewal of public infrastructure.
The GTF will provide Nunavut with a total of $33 million this fiscal year for local infrastructure projects.
The following table indicates the 2019-20 federal GTF allocation and Budget 2019 top-up amount for Nunavut's communities.1