Typically, roads in Canada are built, maintained, and operated at public expense. Recently, Highway 407 north of Toronto was sold to a private firm, which now charges motorists a toll to use it. Should more roads be privately owned and operated in this way? Why or why not?

The government revenue should be used in projects which are important for economic growth. Expenditure on highway roads should not be fully financed by the government as it includes taxes paid by the general public. There are many benefits of privately owned highways as the user of the highway only pays the toll. The burden of high cost is not transferred to the general public.

The highway should be privately owned because:

• The time taken to build the bridge completely will be minimal.
• There will be a lower possibility of corruption as tender is not given to the government department.
• Revenue of government will not be used on maintenance of the bridge. The government has not to worry about depreciation.
• Toll tax makes the highway an excludable good. The use of the road is restricted to payment of some tax. This leads to lower traffic on highways.

Government's projects can be funded more if highway construction is privately owned. Revenue of government could be used in productive activities. This increases economic growth. So, private owned bridges are always beneficial.