(Quebec) The Government of Quebec is revising its budget deficit for 2021-2022 downwards, highlighting the “vigor of the economic recovery observed in Quebec since the beginning of the year and the significant increase in own-source revenue which has result”.
Posted at 5:36 p.m.
Thus, Quebec records a budget deficit of 294 million for the entire 2021-2022 fiscal year, according to the monthly report of preliminary financial operations as of March 31, unveiled Thursday.
The budget tabled on March 22 provided for a deficit of 7.4 billion, before use of the stabilization reserve. Already, in May, the government said it was revising its deficit downwards, to 4.6 billion, due to an economic recovery “more vigorous than expected”.
A deficit of 10.8 billion had been observed in 2020-2021, while Quebec was struggling with the effects of the pandemic.
According to the report released Thursday, the preliminary results show that own-source revenue experienced exceptional growth of 20.0% compared to 2020-2021, a year strongly affected by the health crisis. This generated revenues of more than 18.4 billion higher than the previous year.
Portfolio spending on the rise
The government says that the good performance of own-source revenue has made it possible to support the increase in portfolio spending, particularly in health and education, but also to implement various measures, such as the one-time amount for the cost of living announced in March .
Growth in portfolio expenditures for 2021-2022 as a whole stands at 7.0%.
The results are preliminary and will be adjusted based on additional information obtained by the closing of the government’s financial statements. The final results will be presented in the fall in the public accounts 2021-2022, can we read in the government press release.
A pre-election report on the state of public finances will be tabled on August 15, in accordance with the Department of Finance Actwe add.