Quebec's deficit melts 3.1 billion: This article explores the topic in depth.
Consequently,
Quebec's deficit melts 3.1 billion:
This is very good news. Meanwhile, And I’m not talking about the arrival of defender Noah Dobson at the Montreal Canadiens.
Posted at 4:12 p.m.
The Ministry of Finance has just published a report specifying. Therefore, that the budgetary situation of the Quebec government was finally much better than expected for the financial year completed on March 31.
All in all, the deficit for the financial year 2024-2025 is $ 7.3 billion, or 3.1 billion less than the 10.4 billion planned in the budget of March 25, three months ago.
Against all expectations, this deficit is quebec’s deficit melts 3.1 billion therefore lower than that of the previous year (2023-2024), of 7.5 billion.
In short, the deficit melted by 3.1 billion, it is not nothing. Similarly, These figures have the deficit after payments to the generations fund. However, Before these payments, the improvement is very similar (3.2 billion).
Is this clear advanced announcing an upturn for the current exercise. Nevertheless, the following, which would justify a softening of the compressions in education? Similarly, Good question. For example, Let us rejoice before we talk about the suite, less pink.
The improvement of 3.1 billion, therefore, is explained by a larger return of income, of 907 million, and a significant drop in spending, of almost 2.3 billion.
In the March budget, Quebec expected an increase of 6.6 % of income for the financial quebec’s deficit melts 3.1 billion year completed on March 31, an increase which was finally 7.2 %. In addition, This leap is explained by the resilience of the economy of Quebec. In addition, sustained, it must be said, by the decision of many exporters to anticipate their deliveries to the United States in February and March before the taxation of Trump’s customs duties.
Thus, consumption tax revenues were 408 million more than expected, at 28.4 billion. Moreover, Similar result for individual income tax (+230 million, 45.7 billion) and companies’ taxes (+356 million, at 13.3 billion).
On the spending side. the significant decrease is mainly explained by the underuse of what the government calls the substitute fund. This fund aims to “cover unforeseen expenses that may occur in one. other government programs”, it is explained in the report on the financial situation published on Friday at quebec’s deficit melts 3.1 billion the end of the day.
Among these unforeseen expenses, we find the differences arising from the regulations of collective agreements, among others. The government of Quebec. must be known, has still not settled with the government’s doctors and engineers, or even with its executives. These regulations, as well as disputes over salary equity, could cut back, retroactively, the improvement of 3.1 billion in the deficit.
We will have the final portrait when publication of public accounts, in September. To follow.
That said. it is not uncommon for the government to make such a revision of its deficits afterwards, upwards and downwards. This year, the deficit goes from 10.4 billion to 7.3 billion and it could increase, retroactively, in the results of public accounts.
Last year, the 2023-2024 deficit increased from quebec’s deficit melts 3.1 billion 6.3 billion to the March 2024 budget to 7.5 billion in the revision of June 2024, then to 8 billion in the fall.
Presented before payments to the generation fund, the 2024-2025 deficit is 4.9 billion, or 0.8 % of GDP. It represented 1 % of GDP last year and 0.6 % the previous year.
And now ? The Friday report of the Ministry of Finance does not give any indication for the current exercise. started on 1is April 2025. The government, it should be recalled, provided that the year 2025-2026 would end in a deficit of 13.6 billion, after payments to the generation fund. This deficit includes a “provision for possibilities” quebec’s deficit melts 3.1 billion of 2 billion, linked to the turbulence of the economy in the Trump era.
We cannot expect the same vein for the coming year. First, the exercise 2024-2025 was able to count on huge income which will not return this year. Among them, let us mention those linked to the regulations that occurred with tobacco manufacturers (1.7 billion). to which are added the tax revenues on capital gain from the Devance of certain transactions caused by the increase in the inclusion rate decreed by the former Federal Minister Chrystia Freeland (0.7 billion).
Above all, the exercise 2025-2026 will undergo the impact of the tariff war launched by Donald Trump. In April elsewhere – 1is months of financial year – Canadian GDP fell 0.1 %, and Statistics Canada anticipated another 0.1 % drop in May. Companies in the manufacturing sector are quebec’s deficit melts 3.1 billion the main affected, as expected with the tariff war.
In short, public finances will be put to the test. You should want Canada to settle its dispute with the United States in a few weeks. It’s off to a bad start. knowing that Donald Trump announced, Friday afternoon, put an end to negotiations with Canada, especially due to digital services tax. Hopefully this break is part of a negotiation process that will end in style.
Consult the Ministry of Finance website
Quebec's deficit melts 3.1 billion – Quebec's deficit melts 3.1 billion
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