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Old Posted Apr 22, 2013, 4:00 PM
amor de cosmos amor de cosmos is offline
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Infrastructure spending boosts productivity, says Conference Board

Quote:
Public spending boosts productivity, incomes: Conference Board
The Conference Board of Canada says public sector spending boosts private sector productivity, personal incomes.

By: Dana Flavelle Economy, Published on Fri Apr 05 2013

The average Ontario resident receives a $1,000-a-year benefit from provincial government spending on highways, hospitals, parks and other infrastructure projects, a report says.

The figure is based on the gains in productivity that come from things like reduced time spent in traffic, the report by the Conference Board of Canada says.

The report, which was paid for by Infrastructure Ontario, comes as the provincial government prepares to release its next budget. Infrastructure Ontario is the crown agency that delivers large, complex infrastructure renewal projects, such as new colleges, highways and hospitals.

Critics say the government should be focused on paying down its $11.9-billion deficit.

The province of Ontario will have spent an average of $10.7 billion a year on infrastructure projects between 2006 and 2014, the conference board report released Friday says.

Economic activity linked to these investments created an average of 167,000 jobs a year, according to the report called The Economic Impact of Ontario’s Infrastructure Investment Program.

Public investments also reduced the level of unemployment by a full percentage point, the report says.

“What is less obvious, but just as crucial, is that infrastructure boosts private-sector productivity, adding about $1,000 per year to the income of every Ontarian,” the report found.
http://www.thestar.com/business/econ...nce_board.html

Quote:
April 5, 2013 9:00 AM - General - Economic News, Trends & Analysis
Ontario's infrastructure spending makes all Ontarians wealthier

OTTAWA, April 5, 2013 /CNW/ - Ontario has spent an average of $10.7 billion per year on infrastructure between 2006 and 2014. Economic activity linked to these investments supports employment in the province - on average 167,000 jobs per year are due to infrastructure spending. What is less obvious, but just as crucial, is that infrastructure boosts private-sector productivity, adding about $1,000 per year to the income of every Ontarian.

These widespread benefits are published in The Economic Impact of Ontario's Infrastructure Investment Program, released today by The Conference Board of Canada.
HIGHLIGHTS
  • About one-sixth of Ontario government expenditures on infrastructure return to the province in the form of taxes.
  • Construction, manufacturing and business services are among the industries that see the most benefit from infrastructure investment.
  • Productivity gains - such as those generated by reduced time spent in traffic - are permanent benefits for the Ontario economy.


For every $100 million (inflation-adjusted) invested in public infrastructure, about $114 million is produced in real GDP and about 1,670 jobs will be created for one year.

By including direct, supply chain and other impacts, economic activity in Ontario is boosted by an average of $11.3 billion annually—almost evenly split between goods and business services. Several sectors benefit:
  • Construction industry output increases by an average of $3 billion per year and nearly 49,000 construction jobs are supported annually.
  • Manufacturing industries add just over $2 billion in output, and support nearly 23,000 jobs.
  • Business services - including engineering, architecture, transportation, financial services, wholesale and retail, and others - increase by an average of $5.6 billion per year over 2006 to 2014. And business services employment is up by nearly 88,400 jobs annually.
Federal and provincial governments earn billions in revenue from infrastructure investment. Of the $96.7 billion that Ontario spends on infrastructure over the 2006 to 2014 period, the province recoups roughly $16.7 billion in cumulative personal and corporate income taxes, as well as indirect taxes. A similar amount is added to federal coffers.

In total, higher incomes and profits help to generate nearly $3.7 billion per year in taxes between 2006 and 2014, including $1.6 billion in personal income taxes, and $583 million per year in corporate income taxes. Indirect taxes (largely sales taxes) increase by an average by $1.6 billion annually.
http://www.newswire.ca/en/story/1141...ians-wealthier
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