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OTTAWA — The Harper government is set to promise up to $1 billion a year to Canada’s biggest cities for transit projects in this year’s federal budget, municipal sources suggest.

The budget is likely to be short of new spending commitments, as Finance Minister Joe Oliver attempts to balance Ottawa’s books, but he is set to announce transit funding for such cities as Vancouver, Toronto and Ottawa.

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The Federation of Canadian Municipalities called for new federal investments of at least $1 billion annually for big city transit projects, to be matched by provincial and municipal governments, for a total program value of $3 billion a year.

It also called for a funding commitment of 15-20 years, based on five-year planning cycles, with the allocation based on transit ridership, which would see most of the money going to the biggest cities.

Sources suggested the commitment would not amount to $1 billion in Year One but would build to reach that amount in the out years.