Government blames economic uncertainty attributable to temporary factors, such as difficult weather conditions, forest fires and labour strikes.
QUEBEC CITY — The Quebec government has once again revised the increase in its deficit for the 2023-2024 financial year — to $7.5 billion — highlighting a context of stagnation in economic activity in the province.
It represents an upward revision of $1.2 billion from the figures presented in the Coalition Avenir Québec budget last March.
At that time, the deficit was forecast at $6.3 billion, up from the previous evaluation of $4 billion.
The CAQ asserts economic uncertainty led to a revision of the balance in the budget attributed mainly to a decrease of $1.1 billion in own-source revenue.
The government highlighted as well a reduction of the top two personal income-tax rates on personal income announced in the 2023-2024 budget had the effect of moderating the growth of own-source revenues.
According to “preliminary results” presented on Friday, expenses advanced more quickly than revenues, growing by 2.2 per cent. As well, portfolio expenses increased by 2.5 per cent, notably in health and social services, family and higher education.
Quebec Finance Minister Eric Girard said the increase in the deficit did not call into question the government’s plan to return to a balanced budget “at the latest” in 2029-2030.
“We have been at work since March to optimize government action and we are continuing to review of all government spending to identify sources of saving,” he said in a communiqué.
When the budget was presented, the government said the projected deficit for 2024-2025 would reach $11 billon, taking into account the contribution to the Generations Fund.
The government said it would launch an operation to “optimize” the actions of the state, with the goal of generating additional revenues of $2.9 billion.