The strength of Québec’s economy during the fiscal year ended March 31 was so great that the deficit was reduced by $ 2.8 billion compared to last budget forecasts. Without the one -time $ 500 grant to almost all Quebecers, the balance is close to balancing the budget.
When tabling his budget plan for 2022-2023, Finance Minister Eric Girard predicted a deficit of $ 6.1 billion for the previous year. This is down to 3.3 billion, according to the most recent Monthly Report on Financial Transactions, dated Feb. 28, 2022.
All the provinces changed their autonomous revenues, Mr. Girard underlined in an interview with Radio-Canada. We are all 18 to 20%, this is higher than we expected.
In Québec, revenues will thus increase by 18.9% in 2021-2022 and those from corporate taxes, by 51.9%.
The increase in these revenues is associated with stronger than expected growth in economic growth. Nominal gross domestic product (excluding inflation) jumped 13.1%, an increase of 1.8 percentage points.
A balanced budget, or even a surplus, can be achieved without the $ 3.2 billion intended to pay Quebecers $ 500 to deal with inflation and infrastructure shifts totaling $ 1.4 billion for the blue line, specifically.
And what does 2022-2023 hold for us?
Minister Girard suggests that part of the $ 2.8 billion budget improvements could mauulitthat may be improve balance across the horizon of the next five years.
But inflation, rising interest rates, supply issues, the war in Ukraine and the volatility of the financial market point to greater uncertainty for this year.
The economy has one in three chances to go into recession over the next year, according to Eric Girard. We made a neat and responsible budget in March, he maintained. We are ready.
The Minister did not wish to give any indication about the possibility of new ad hoc assistance and reports that tax revenues resulting from fuel price increases have marginal impact in income.
Source: Radio-Canada
