(Quebec) It’s Christmas ahead of time in Quebec. As the coffers are replenishing much faster than expected, the Legault government is adding $ 5 billion in new spending this year, handing out a check for $ 200 to $ 275 to 3.3 million low- and middle-income Quebecers to cope with rising cost of living. The anticipated deficit is almost in half.
Some 700,000 low-income seniors will also receive up to $ 200 more. The thousands of parents whose toddlers attend an unsubsidized childcare service will be entitled to a more generous tax credit: $ 1,310 more per year for a family income between $ 60,000 and $ 100,000.
To respond to the labor shortage, Quebec is setting up generous scholarships for students enrolled in programs in six sectors: health and social services, education, childcare services, engineering, information technology and construction. At the end of their training, students will have received up to $ 9,000 at college, $ 15,000 to $ 20,000 at university depending on whether the program is three or four years. This is in addition to student financial assistance.
To encourage retirees from education, daycare and nursing, among other things, to return to work, Quebec is putting on the table a temporary salary bonus, until March 31, 2023, which represents approximately $ 3,000 per year for a person with a work income of $ 40,000.
This is quite a turnaround that we are witnessing Thursday with the mini-budget of the Minister of Finance Eric Girard compared to his spring fiscal year. The exceptional growth of the economy shakes up forecasts.
With real GDP expected to jump 6.5% this year, up 2.3 percentage points from the March forecast, government revenues are increasing much more than expected.
Own-source revenue has jumped by $ 5 billion, particularly in corporate taxes, which are doing better than the government expected.
Federal transfers are up $ 2.6 billion. This is thanks to the recent signing of agreements with the Trudeau government on child care and housing.
Revenues from government enterprises are $ 831 million higher. Hydro-Québec and Investissement Québec are mainly at the origin of this influx of money.
In total, nine billion more are in the coffers of the State.
The government is taking part of it, five billion, to finance the package of measures in its mini-budget, in particular to address the labor shortage. Some 3.6 billion are used to strengthen the health system, in particular with the premiums for nurses already announced. There is a plan to reduce the waiting list for surgery.
The anticipated deficit for the current year drops from $ 12.3 billion to $ 6.8 billion.
The structural deficit, the one that will remain after the health crisis, is also melting. It is now estimated at $ 4 instead of $ 6.5 billion per year.
The smaller the structural deficit, the less demanding the efforts to restore fiscal balance. Quebec remains on course for a return to equilibrium by 2027-2028.
Measures in brief …
For seniors
Quebec is giving a helping hand to seniors who have to deal with the sudden increase in the cost of living with tax assistance of nearly $ 200. To qualify for this assistance, you must be 70 years of age or over and have an income of $ 31,575 or less, or $ 54,340 for a couple with both spouses aged 70 or over. “The incomes of the most disadvantaged seniors change little from one year to the next and mainly consist of government benefits. Thus, these seniors do not benefit from other sources of income that can allow them to cope with the rise in the cost of living, ”explains one in the budget document presented by the Ministry of Finance on Thursday. This measure is in fact an increase in the amount of support for the support of seniors, implemented in 2018. The maximum amount of this annual assistance will therefore go from $ 209 to $ 400 as of this year. However, this amount is gradually reduced from the family income threshold of $ 23,575.
For the cost of living
The Legault government will send a check for $ 200 to $ 400 to 3.3 million people to help them absorb the rising cost of living caused by inflation. “The exceptional benefit, combined with the indexation of the parameters of the tax system, will make it possible to offset a large part of the increase in the cost of living faced by low and middle-income Quebec households”, we can read. in Quebec’s economic update, unveiled Thursday. This benefit corresponds to an amount of $ 400 for couples, $ 275 for people living alone, and $ 200 for single people living in a shared apartment. No need to apply to Revenu Québec to obtain it. It will be “automatically paid to all households eligible for the solidarity tax credit”. The measure has a budgetary impact of 740 million. “It will face the cyclical increase in the cost of living observed in 2021”, specifies the document. The calculation: the echoative “will compensate up to 100% of the difference between the increase in the value of the measure of the consumption basket following an inflation of 4%, and the indexation of the tax system of 2.64% ”. To claim the tax credit, you must have a family income of less than $ 50,645 for a single person, or $ 55,912 for a couple.
With Charles Lecavalier