(Quebec) The Quebec government posted a budget surplus of $ 1.4 billion for the first five months of this fiscal year, attributing this result to significant revenues which testify to the strength of the economic recovery observed since the start of the year.
In the Monthly Report on Financial Transactions as of August 31, 2021, published on Friday, the government emphasizes, however, that certain factors will have a downward impact on the budgetary balance by the end of the year.
First and foremost, a significant portion of the planned annual expenditure will be made in the second half of the year, particularly in health and education.
Thus, a total of 6.4 billion in additional expenditure remains to be recorded.
While economic activity in Quebec remains “dynamic”, the government estimates that it will develop at a slower pace than at the start of the year, which will have the effect of moderating income growth by the end of the year. ‘year.
Consequently, for the whole of the 2021-2022 fiscal year, the government forecasts a budget deficit of 6.8 billion before use of the stabilization reserve, as announced in the economic update of the Minister of Finance, Eric Girard, last November.