Quebec Finance Minister Eric Girard displays a copy of his budget during a press conference in Longueuil, Que., Monday, March 11, 2024. Girard will present the budget Tuesday, which is expected to include a larger deficit than originally forecast. THE CANADIAN PRESS/Christinne Muschi
Quebec’s finance minister has tabled a $158-billion budget with an $11-billion deficit, and he says the government will miss its target to balance the books.
Eric Girard is committing to a balanced budget by the 2029-30 fiscal year – two years later than originally forecast – but he won’t release a specific timeline for achieving that until next year.
He blames a “stagnant” economy and lower-than-expected revenues from the provincially owned power utility for a deficit that is nearly quadruple the $3 billion figure he had forecast in the fall for the 2024-25 fiscal year.
Negotiations with public sector unions led to $3 billion in extra government spending per year compared to what had been forecast in the fall.
The budget calls for $8.8 billion in new spending over five years, with almost $5 billion going to health and education.
Girard says he will find $2.9 billion in savings over five years thanks to a reduction in wage-based tax credits, an increase in tobacco taxes, and a demand that provincially owned companies – including the power utility and the liquor authority – cut expenses.
This report by The Canadian Press was first published March 12, 2024.
