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Under Canada’s Constitution Act, the provinces and territories have exclusive jurisdiction over the building and maintenance of national highways. Local and municipal roads are under the jurisdiction of municipal governments. The federal government administers a number of federal funds to assist with road infrastructure projects, many of which are structured through bilateral cost-sharing agreements with specific provinces, territories or municipal governments for specific projects. Most of the monies for these various funds come from consolidated revenue, which is then allocated through a budgetary process. However, part of the federal gas tax revenue is earmarked for municipal infrastructure projects under the Federal Gas Tax Fund.
Provincially, the general practice is not to tie fuel taxes to highway or road infrastructure projects. In most provinces, expenditure on highway infrastructure projects is allocated under a government budget from the general revenue rather than from a particular tax source. Public-private partnerships have also been utilized to fund major road infrastructure projects."
Maybe it is time as a way to combat climate change that the federal funds currently used to assist with road infrastructure projects be allocated towards pedestrian and cycling infrastructure instead.