The biggest benefit to municipalities from this week’s federal budget will be the increase in what was previously known as the Gas Tax.
A portion of the taxes paid on gas products go to fund municipalities. That amount has now been doubled to $4.4-billion through what is now known as the Community Building Fund.
CEO of Municipalities NL Craig Pollett says there are a few more items in the federal budget that will help municipalities.
He says there’s “an extra billion” for the Universal Broadband Fund which is “a big deal” for rural communities.
The funding available for municipalities to help deal with natural disasters and climate change has also been expanded and will be easier for smaller communities to access.