Municipalities need a fairer and more equitable share of existing tax dollars to build up our communities, drive productivity and ensure Canada’s competitiveness. We need a National Prosperity Partnership in which all orders of government come together to advance municipal fiscal reform, invest in local strength and make our nation more economically resilient.
Canada's infrastructure is at a critical juncture, with over $240 billion needed to address the backlog of necessary repairs and replacements, per Statistics Canada's Core Public Infrastructure Survey. We need stronger infrastructure that enables businesses, unlocks trade, drives local job creation, boosts productivity and lays the groundwork for increased housing supply. This means roads, water and wastewater infrastructure, public transit, fire stations, community facilities and more.
Let’s get to work:
- Advance municipal fiscal reform. Municipalities own more than 60% of Canada’s core public infrastructure yet only collect between eight and ten cents of every tax dollar. This is unsustainable.
- Repair and upgrade core infrastructure: Urgent investments are needed to ensure our infrastructure can support economic growth and housing needs. Without it, infrastructure failures could limit development and pose public safety risks.
- Support rural contributions to prosperity: While Rural Canada is home to 15% of the population, these municipalities manage 36% of core infrastructure, crucial for sectors contributing nearly $200 billion to GDP. By investing in rural, northern and remote infrastructure, we can maximize Canada’s economic potential.
- Expand public transit and housing options: Frequent and reliable public transit service is a powerful method of tackling traffic congestion, cutting commute times and increasing the flow of goods and people through our cities and metro regions. It is also crucial to unlock the economic potential of our rural communities. Public transit enables more density when paired with transit-oriented housing development, helping to make the cost of housing and transportation more affordable.
- Improve digital connectivity: In 2025, fast and reliable internet and cellular services are no longer a luxury, but a necessity. Enhanced digital infrastructure connects communities, supports commerce, contributes to community safety and unlocks potential across Canada.
A National Prosperity Partnership that makes better use of existing tax dollars can modernize the outdated municipal financing framework. Local governments manage over 60% of public infrastructure but receive only eight to ten cents of every tax dollar. A true partnership will provide the funding needed for infrastructure renewal, ensuring resilience and prosperity for all Canadians.
