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3. By level of government

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All three levels of government spend significantly on infrastructure. Every region showed a relative decline in the ownership of capital by the federal and the provincial governments relative to the municipal level (Figure 2). This shift was more marked in Ontario and Quebec. In Ontario, 67% of government-owned capital in 2005 belonged to municipalities, compared with 38% in 1961. In Quebec, where the provincial government's share fell the most, the decline was twice as steep as for the country overall, from 49% to 33% (see Table A.1 in the Appendix). By comparison, in Prince Edward Island, it was only 17% in 2005 compared with 4% in 1961.

Figure 2
Stock of infrastructure capital, by level of government

Decentralization occurred across many types of assets throughout the period under study. The federal government cut its investments in a wide range of assets (Table A.2 in the Appendix). At the same time, local governments boosted their investments, notably in roads and the environment.