In Custodia Legis
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This report outlines foreign aid allocation in the European Union as well as in Australia, Brazil, China, Finland, France, Germany, India, Israel, Japan, Kuwait, New Zealand, Norway, the Russian Federation, Saudi Arabia, South Africa, South Korea, Sweden, and the United Kingdom.
A Comparative Summary, Table, and Maps are included.
Full Report (PDF, 2.18MB).
Australia
The Australian government recently released a report setting out the policy framework for its aid program in response to an independent review. The review was aimed at ensuring the program’s effectiveness as its budget is increased to 0.5% of GNI over the next five years. Australia also regulates the private donation system through an accreditation process and engages in different development assistance initiatives apart from direct aid to countries, such as providing scholarships and addressing issues in the remittance system.
Brazil
The Brazilian federal government administers a federal transportation system, which is implemented through federal agencies or by concession, authorization, or lease to a public or private enterprise, or to a public-private partnership. Regardless of the type of administration, the federal government is authorized to apply financial resources to the system. A federal tax levied on the import and sale of oil and oil products, natural gas and its derivatives, and ethanol fuel was instituted in 2001 to finance, among other things, transportation infrastructure programs.
China
Funding for road construction and maintenance in China derives from a combination of government and commercial sources. Only a small share of funding has been provided by central government budgetary revenue. A 10% vehicle purchase tax is collected on the purchase of vehicles; revenue of the special taxation is dedicated to road development projects. Tolling is widely allowed.
European Union
Roads in England were built and maintained through statutory labor, tolls, and ultimately taxes raised from vehicles paid into a specific fund to provide roads. Currently, all taxes and duties obtained from vehicle taxes and excise duties on fuel are paid directly into the government’s main fund, and monies provided for roads are allocated from the budget.
France
French roads are divided into three main categories: municipal, departmental, and national. Different levels of government have jurisdiction over different types of roads, but the construction of new roads is often financed by more than one source. No special tax or duty is specifically tied to funding road infrastructure, except that many French highways are funded by tolls.
Germany
Germany does not have a national highway fund. Federal highways are funded by the federation through a combination of general revenue and receipts from tolls imposed on truck traffic. The revenues from the German taxes on gasoline and motor vehicle registration accrue to the federation, yet they are not tied to highway maintenance or construction.
India
Funding for road construction and maintenance in Israel derives from both public and private sources. Public funding is utilized for the development of interurban and municipal roads. The state imposes indirect taxes and fees on transportation-related goods and services; excise taxes on gasoline; and a variety of vehicle fees such as an annual licensing fees, car radio fee, etc. The construction and maintenance of interurban roads in Israel has been delegated to two government companies, the operations of which are partially funded by private sources.
Israel
Funding for road construction and maintenance in Israel derives from both public and private sources. Public funding is utilized for the development of interurban and municipal roads. The state imposes indirect taxes and fees on transportation-related goods and services; excise taxes on gasoline; and a variety of vehicle fees such as an annual licensing fees, car radio fee, etc. The construction and maintenance of interurban roads in Israel has been delegated to two government companies, the operations of which are partially funded by private sources.
Japan
Italy’s national government provides all funding for national highways, while regions enjoy limited power to fund regional roads. Tax revenue on automobile and gas usage is not applied to dedicated funding for road infrastructure construction. Automobile taxes are determined according to several criteria, such as an automobile’s environmental impact, engine power, or historical interest.
Kuwait
Japan traditionally constructed highways through highway public corporations, but these corporations incurred huge amounts of debt over the years. In 2005, four highway public corporations were dissolved and the Japan Expressways Holding and Debt Repayment Agency (JEHDRA) and six new highway companies were established. JEHDRA took over the highway assets and debts of four former highway public corporations and leased highways to the highway companies. The government supports JEHDRA, and JEHDRA in turn provides financing to highway companies through grants and debt guarantees. The government constructs and manages those highways that are not profitable by themselves.
New Zealand
The highway system of Mexico is made up of federal highways, state highways, and rural roads. Federal highways are those that connect with roads from foreign countries; link two or more states of the Federation; and are wholly or mostly built by the Federation with federal funds or through federal grants by individuals, states, or municipalities. Federal highways are built and maintained by the federal government through the Secretariat of Communications and Transportation.
Norway
The Netherlands funds state highways through a national Infrastructure Fund, which is fed by express lane fees and regular tolls. Provinces, municipalities, and district water boards may also set tolls on motor vehicles passing through certain tollgates on state-managed roads. Additionally, the government applies one-time and recurrent taxes on registered motor vehicles, and levies fuel taxes and a general VAT of 21%. Whether or not these taxes are applied to road construction and maintenance is unclear.
Russian Federation
The South African National Roads Agency SOC Limited (SANRAL), an independent statutory company whose sole shareholder and owner is the South African government, is in charge of all matters affecting the country’s national road network. Over 80% of South Africa’s national roads are nontoll roads funded largely through government appropriations. The rest are toll roads, over 10% of which are under the direct management of SANRAL, and funded in large part through a mix of toll revenues and capital market borrowings (generated by auctioning government guaranteed and nonguaranteed bonds).
Saudi Arabia
Sweden finances its highways through municipal and state taxes. The state receives revenue from the taxation of motor vehicles and fuels, and from congestion fees in the two largest cities. Planning for major infrastructure projects is undertaken by the municipalities and the national government.
South Africa
Sweden finances its highways through municipal and state taxes. The state receives revenue from the taxation of motor vehicles and fuels, and from congestion fees in the two largest cities. Planning for major infrastructure projects is undertaken by the municipalities and the national government.
South Korea
Sweden finances its highways through municipal and state taxes. The state receives revenue from the taxation of motor vehicles and fuels, and from congestion fees in the two largest cities. Planning for major infrastructure projects is undertaken by the municipalities and the national government.
Sweden
Sweden finances its highways through municipal and state taxes. The state receives revenue from the taxation of motor vehicles and fuels, and from congestion fees in the two largest cities. Planning for major infrastructure projects is undertaken by the municipalities and the national government.
United Kingdom
Sweden finances its highways through municipal and state taxes. The state receives revenue from the taxation of motor vehicles and fuels, and from congestion fees in the two largest cities. Planning for major infrastructure projects is undertaken by the municipalities and the national government.
Last Updated: 10/11/2018
