(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, including a check for $ 200 to $ 275 to 3.3 million low- and middle-income Quebecers to cope. the rising cost of living. The anticipated deficit almost melts in half, reveals the minibudget tabled Thursday.
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 those whose family income is between $ 60,000 and $ 100,000.
The Legault government is generous thanks to the “exceptional performance” of the Quebec economy, superior to that of Canada and the United States, and not because it is less than a year from the end of its mandate, according to the Minister of Finance, Eric Girard.
“I am not focusing on the elections, believe me,” he said at a press conference. “Honestly, I haven’t thought about the election once in the past 12 months. […] These are amounts that will help. The government is there for that, to help. “
To respond to the labor shortage, Quebec is creating generous scholarships for students enrolled in programs in six sectors: health and social services, education, childcare, engineering, information technology and construction. At the end of their training, students will have received up to $ 9,000 at college, and $ 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.
Eric Girard’s minibudget shows quite a turnaround in relation to his spring exercise. The strong growth of the economy is shaking up forecasts.
With real gross domestic product expected to jump 6.5% this year, up 2.3 percentage points from the March forecast, government revenues are expanding much more than expected.
Own-source revenue climbs by $ 5 billion. Personal and corporate taxes, like the QST, yield more.
Federal transfers are up $ 2.6 billion. This is thanks to recent agreements with the Trudeau government on child care and housing, and Ottawa’s help in fighting the pandemic.
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, 9 billion more are in the coffers of the State.
The government is taking part of it, 5 billion, to finance the package of measures in its mini-budget, in particular to respond to the labor shortage. Some 3.6 billion are used to strengthen the health system, with premiums for nurses already announced, for example. There is a plan to reduce the waiting list for surgery, injecting 800 million in three years.
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 billion, rather than $ 6.5 billion per year.
The less severe the structural deficit, the less demanding the efforts to get out of the hole. Québec remains on course for a return to a balanced budget by 2027-2028.
“By taking seven years, it allows for a smoother transition,” said Eric Girard, stressing that his forecasts in terms of revenues are “conservative” for the next few years.
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 for support for 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 a sum 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 initiative “will compensate for 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, Press