(Montreal) To achieve its promises of 41 billion in five years, the Quebec Liberal Party (PLQ) would inflate deficits rather than cut spending, in addition to making the rich and the banks pay. The net debt would increase by five billion compared to forecasts.
Posted at 11:05 a.m.
Updated at 12:26 p.m.
It is “absolutely not” a spending binge, argued Liberal leader Dominique Anglade when unveiling her financial framework on Sunday, after a week of campaigning. According to her, it is “a financial framework that is both fair and responsible”, which aims to respond to the crisis of inflation and the shortage of labour.
Its promises total 41 billion in five years (6.5 billion per year, in the long term, in 2026-2027). The two most costly commitments are the tax cuts (12 billion in five years; 2.4 billion per year in the long term) and the Seniors Allowance (10 billion in five years; 2 billion per year in the long term).
A Liberal government would seek additional revenue of $12 billion over five years. This is what makes the Liberals say that the net cost of their commitments is $29 billion.
For example, Dominique Anglade would increase taxes on the rich ($300,000 and more per year) by creating a new tax bracket ($1.4 billion in five years). It would create a new tax on financial institutions, ie banks and insurance companies (1.7 billion in five years). “We are sending a message of fairness,” said the Liberal leader. Quebec is at a crossroads with a number of crises that we must face, and everyone must do their part. »
The PLQ is also betting that it would recover nearly six billion in five years in its fight against tax havens (3.4 billion) and undeclared work (2 billion). Under the Liberals, there would be a tax on unoccupied buildings in Montreal (one billion in five years) and another on GAFAM, the digital giants (900 million in five years).
To make its financial framework, the party kept intact the revenue growth forecasts contained in the pre-election report presented on August 15 by the Legault government. And there is no question of adopting austerity policies as under the Couillard government: Dominique Anglade would not cut spending growth; she would increase them with her promises. “We have no intention of going to cut services, on the contrary,” she insisted.
The deficits would be around $6 billion per year, after payments to the Generations Fund, which represents 1% of GDP. “It’s not exaggerated,” pleaded Dominique Anglade The Liberal Party would maintain these payments as planned (unlike the Coalition avenir Québec).
The return to a balanced budget would be postponed in seven years. The financial framework, which spans five years, is silent on the measures that would be taken to eliminate the deficit.
Net debt would increase by five billion compared to forecasts, to reach 211 billion in 2027. Its weight in relation to the size of GDP would continue to decline, however. We would go from 38% to 33.2% in five years. A Liberal government would maintain the objective of reaching a ratio of 32%, the Canadian average.