SHERBROOKE | Salary increases for state employees will have a “significant” impact on government finances, warns François Legault, who does not speak of future austerity, but of “budgetary rigor”, swearing that there is no there will be no cuts in services.
• Read also: Girard questions return to balanced budget in 2027
“There is no question of cutting services,” repeated the CAQ leader, at the end of the pre-sessional caucus of his parliamentary wing, which ended in Sherbrooke on Thursday.
The solution to getting out of this situation will include reducing bureaucracy and creating wealth, explained the Prime Minister.
“There is a challenge, always of budgetary rigor, but there will be no austerity,” assured Mr. Legault.
A mathematical question
At the very start of the day, its Minister of Finance, Eric Girard, cast doubt on the target of returning to budgetary balance, long set for 2027-2028.
This is because the salary increases of 17.4% over five years included in the agreements in principle with the public service unions – we are talking about $11 billion per year – will result in greater expenditure than those planned in the update. November economic day.
- Listen to Yasmine Abdelfadel’s news editorial via QUB :
We will have to wait until the next budget to see the total impacts of the agreements in principle, on which union members have not finished voting. But “it’s mathematical. At this stage, the deficits will be greater,” summarized the Minister of Finance during a press scrum.
And this comes at an “extremely difficult” time for the economy, which is “practically stopped,” he noted.
Growth was also affected by the strikes, in December 2023, he underlined, while we heard, outside the hotel where the CAQ elected officials are gathered, FIQ union members demonstrating .
Tax cut
Despite the difficult situation, François Legault maintains that he was responsible for reducing Quebecers’ taxes, a gesture which deprives the State of revenue of at least $9.2 billion. During an activist happy hour on Wednesday evening, the head of the CAQ congratulated himself on having “dared” to do it and said he was proud of it.
“I think it was necessary. We know, taxes are within the ceiling in Quebec, when we compare ourselves with our neighbors, so it was necessary,” defended the Prime Minister.
“In addition, we have significant challenges in terms of the cost of living, not just in Quebec, but everywhere. So improving disposable income was important. So yes, it was a good decision,” added the CAQ leader.