With revenues boosted by inflation, the CAQ government is able to somewhat mitigate the effects of the latter on the mere mortal. In this sense, the Minister of Finance, Eric Girard, has innovated, such general compensation paid by the State to taxpayers for an inflationary surge being, to say the least, unusual.
This sum of $500 granted to all Quebecers who earn $100,000 a year or less — a measure totaling $3 billion — is in addition to the exceptional benefit of $700 million granted to 3.3 million low- and middle-income people planned in the last financial update of November and paid at the beginning of the year. This is the usual way of proceeding: to be concerned above all with the less fortunate. This time, the manna falls on 6.4 million of the 6.8 million adults in Quebec.
To justify his measure, Eric Girard quoted the International Monetary Fund (IMF), which expressed itself at the beginning of March on the repercussions of the war in Ukraine, remarks taken up in the budgetary documents: “Fiscal policy will have to support households vulnerable as they strive to counter the rising cost of living. Note that the IMF speaks precisely of “fragile households”.
This amount of 3 billion must be put in relation to the income that the State has collected or will collect thanks to inflation, in taxes and additional consumption taxes. At the end of this fiscal year, the State’s own-source revenue will have increased by a remarkable 15.3%. What the government takes with one hand, it will give back with the other.
Unanimously, the opposition parties decried the electoralism of this check sent to almost everyone. The intention of the Legault government is that this sum be distributed quickly by the mechanism of the declaration of income. Eric Girard opened up about it: a check sent later, on the eve of the elections, for example, would have the worst effect, as has already been seen, the government thus showing crass electoralism. But there is no getting out of it: the final budget before the elections is never exempt from electoral aims.
This situation, altogether exceptional, militated for a specific measure. But for the rest, the CAQ government is continuing its race, without accelerating it, towards a balanced budget in 2027-2028. In reality, taking into account the deposit in the Generations Fund, the balance will be reached as of 2023-2024. As the Minister of Finance said in Homeworkthe return to zero deficit will take place without voters realizing it.
Beyond the one-off measure, the budget has the merit of maintaining a substantial level of expenditure for the main missions of the State. In 2022-2023, spending on health and social services will increase by 6.3%, more than normal cost growth, and one billion in five years is planned for the reorganization of the health system. More modest sums are reserved for improving care and services for the population. For home care — figure in the budget 100 million for the fiscal year that begins and 145 million for next year — it is not the jackpot.
For the coming year, higher education will experience a 13% increase in its budget, which will exceed 10 billion. We intend to make CEGEP and university studies more accessible, in particular by extending the abolition of interest on student loans. We want to increase the number of graduates, which is part of the general objective of the Legault government to ensure that Quebec catches up with Ontario in terms of productivity and per capita income.
There is no doubt that the Legault government enjoys a favorable situation. Thus, without lifting a finger, thanks to a rising carbon market, it can increase by one billion in five years the envelope reserved for its Plan for a green economywhich will reach 7.6 billion.
In terms of housing and real estate, the Legault government continues to believe that the situation does not deserve special attention. The Minister of Finance refuses to financially support new buyers for fear of stimulating demand and thereby driving up prices. We cannot fault him. On the other hand, measures are needed to reduce the flips », evictions of tenants and excessive rent increases. Housing is not only unaffordable for the most disadvantaged, it has also become so for many young middle-class families. Eric Girard seems to believe that catching up with Ontario also means suffering from a real estate market marked by unsustainable overheating. And a check for $500 won’t change that.