The Girard 2024-2025 budget includes several measures that will directly affect the wallets of Quebecers. Here are eight things to remember.
• Read also: Girard budget: faced with a record deficit of $11 billion, difficult choices ahead in Quebec
• Read also: Budget Girard: Hurry! The generous subsidy for the purchase of an electric vehicle will disappear
1) A historic deficit of $11 billion, the debt is increasing
Quebecers will soon have to tighten their belts, as the sixth Girard budget forecasts a deficit of $11 billion, which would make it the highest in history in absolute dollars. This has the effect of increasing the weight of net debt to 39% of GDP, and postponing the achievement of a balanced budget until 2029-2030.
2) Electric cars: the government subsidy will disappear
The Roulez vert program is in its final stages, while the government will stop offering rebates on the purchase of electric vehicles as of 1er January 2027, after a gradual reduction from the start of next year. There are only a few months left to benefit from these subsidies.
3) More paid construction training
Accelerated and paid construction training courses are so popular that the government decided to add a program for linemen, and to open a new cohort in carpentry and joinery from spring 2024. Since their launch last October, more than 4,600 people have registered in the offensive which aims to meet the workforce needs of the area. The government plans to devote $111 million to it over the next two years.
4) Used cars: Quebec tackles the under-declaration of the sale price
Taking advantage of the fact that used vehicles 10 years old or more did not appear in the Weekly Evaluation guide (the famous red book), more than 130,000 people reported selling their car for $1 or less in 2022 to avoid paying Quebec sales tax. Faced with this situation, the government has decided to increase the number of years published in this guide from 9 to 14 years. It hopes to generate additional revenues of nearly $660 million over five years.
5) Two increases in the tax on tobacco products
Smokers will pay more for their carton of cigarettes, as the government will double the tax on tobacco products by $2. As of March 13, it will increase from $37.80 to $39.80 per carton of 200 cigarettes. A second increase will occur on January 6, 2025, to settle at $41.80. Quebec plans to collect an additional $300 million over the next 5 years and convince 40,000 people to stop smoking.
6) Keeping seniors at work: Quebec abolishes aid to businesses
In a context of labor shortage, the Legault government has ruled that companies do not need incentives to hire workers aged 60 or over. It therefore abolishes the tax credit favoring the continued employment of experienced workers. Seniors who remain employed will, however, continue to receive the tax credit for career extension, which is maintained.
7) $320 million more to Frenchify immigrants
As the increase in the number of immigrants puts pressure on francization services, the government will have to spend $320 million by 2028-2029 to increase the capacity of its French learning window, Francisation Québec. Other amounts for the integration of new arrivals will amount to $80 million during this same period.
8) Enhanced pension for disabled seniors
Disabled seniors will no longer have to settle for a reduced retirement pension starting next year, which will allow 77,000 people aged 65 and over to receive up to $3,930 more per year.