Quebec will present its fall economic update today. What might be in it for you?
Don't expect much new spending — and cuts could be coming
The Quebec government is set to present its fall economic update today, offering an overview of the province's financial situation. Traditionally seen as a "mini-budget," these updates often include announcements of new spending. However, with a projected $11 billion deficit for 2024-25, this year’s update is expected to focus on spending cuts rather than new expenditures.
Financial Challenges and Expected Measures
Finance Minister Éric Girard is likely to present a more somber financial outlook compared to last spring. The announcement follows a difficult year for Hydro-Québec, which recently reported profits dropping by over $800 million due to low water levels in its reservoirs.
Girard has already tasked Crown corporations—including Hydro-Québec, Loto-Québec, the Société des alcools du Québec, the Société québécoise du cannabis, and Investissement Québec—with generating an additional $1 billion in net revenue over five years. Similarly, Santé Québec, the new administrative body overseeing the health-care system, has been directed to identify $1 billion in savings, though the government has emphasized minimizing impacts on health-care services by targeting administrative costs.
Past and Future Economic Goals
In last year’s fall update, the government allocated funds from its contingency budget to address food insecurity and support social and affordable housing projects. Over the Coalition Avenir Québec’s (CAQ) six years in power, it has simultaneously lowered taxes and increased spending. Girard has attributed recent economic slowdowns to the pandemic and other challenging economic conditions.
While Girard had previously projected economic improvements by 2025 to facilitate deficit reductions, his timeline for achieving a balanced budget has shifted. The government now aims to balance the budget by 2029-30.
Announcement Details
The economic update will be officially released at 11 a.m. on Thursday, shedding further light on the government's strategy for navigating Quebec’s financial challenges.
