Quebec’s upcoming administration will confront a significant challenge in maintaining fiscal equilibrium throughout its tenure, as per the province’s auditor general, Christine Roy. Roy anticipates that the succeeding government will be compelled to implement budget reductions exceeding $6 billion commencing next year to strive for a balanced budget. This forecast was disclosed in her office’s pre-election report, designed to enhance governmental transparency concerning the economic and financial state of the provinces. Roy cautioned that services may be impacted in the coming years.
“The government will curtail the funding of specific activities and programs, thereby posing challenges for the beneficiaries of these initiatives,” she articulated during a press briefing in Quebec City on Monday. The predicted deficit is likely attributable to the province’s lower-than-average economic growth outlook, influenced by various factors such as population stagnation, decelerating domestic demand, and the repercussions of U.S. tariffs and global conflicts, according to Roy’s office.
Roy emphasized that the forthcoming government will need to exercise fiscal restraint for several years to adhere to the Balanced Budget Act, mandating the elimination of the deficit by 2029-30. A reduction of $2 billion is required in 2027-2028, followed by potentially up to $4.85 billion in 2028-2029. Quebec’s next election is slated for October 5, with the campaign anticipated to kick off towards the end of the upcoming week.
In July, Quebec Finance Minister Eric Girard remarked that the province’s economy was surpassing expectations despite global uncertainties. He revealed that Quebec recorded an operational deficit of $5.5 billion, equivalent to 0.9% of the gross domestic product for the previous fiscal year ending in March.