|
Getting your Trinity Audio player ready...
|
Trudeau government underestimated cost of EV subsidies by $6.3 billion
The Liberals have already gone billions of dollars over budget for subsidies given to electric vehicle manufacturers in collaboration with provincial governments.
The federal government is now spending more money on capital expenses for projects across the EV supply chain than large automotive corporations are spending themselves on these projects.
Over the past four years, the Trudeau government in collaboration with the governments of Ontario and Quebec have struck 13 deals with multinational auto-making corporations to match investments with an equal amount of private sector funding.
As part of these deals, Canada is committed to dolling out an estimated $46.1 billion in subsidies to EV producers according to the Trudeau government’s initial estimates.
However, an analysis by the Parliamentary Budget Officer found that the government spends an estimated 14% more on the EV supply chain than the private industry. Originally meant to be $46.1 billion in government subsidies to EV manufacturers, the figure has ballooned to an estimated $6.3 billion more than the original target.
“PBO estimates total corresponding government support (for capital and operating expenses) to be up to $52.5 billion, which is $6.3 billion (14 per cent) higher than announced investments.” reads the analysis.
