The 2024-2025 budget will be presented on March 12, the Minister of Finance announced Thursday, which is preparing Quebecers for a larger deficit than expected. François Legault assures that there will be no cuts in services or tax increases.
“What you will see is that we have less income because the economy has slowed down in the last year,” said Mr. Girard. He pointed to the reduction in transfers from Ottawa, caused in particular by the end of the federal infrastructure program. Added to this is also the fact that Quebec has still not succeeded in obtaining the health transfers it has long demanded.
“The priorities will be health and education,” indicated the big financier of the Quebec state.
Difficult context
Mr. Girard did not want to say whether the exercise this year will be more difficult than in previous years. “Every budget is difficult. I don’t remember an easy budget,” he said. “That is to say that we have exceptional circumstances which are difficult,” he clarified. It will be a budget that is in difficult conditions. But it’s definitely manageable.”
Asked whether Quebecers should expect the return of austerity, “well, I would say no,” replied the Minister of Finance.
“There will be no cut in services and there will be no tax increase,” commented François Legault at a press briefing.
“For me, this is a budget that I am proud of,” declared the Prime Minister.
Finance Minister Eric Girard, during a press scrum at the National Assembly on February 22, 2024.
“PHOTO GENEVIÈVE LAJOIE”
Last Sunday, the Prime Minister surrounded himself with Ministers Bernard Drainville (Education) and Sonia LeBel (Treasury Board) to warn that the next budget will be “largely in deficit”, due to the increases granted to public sector employees, particularly in the Education network. Mr. Legault has since defended himself from having tried to place the blame on state union members.
“I said it clearly on Sunday, we made the choice to invest massively in the working conditions of teachers and nurses. I think this is the choice that had to be made,” Mr. Legault repeated Thursday morning.
“We have less income. And it is certain that negotiations with the public sector lead to more spending,” reiterated Minister Girard.
During the preparatory caucus for the return to parliament at the end of January, the Minister of Finance cast doubt on the return to a balanced budget, hoped for by 2027-28.
No regrets
Despite the challenges facing him, on the budgetary level, Minister Girard maintains that it was appropriate to lower Quebecers’ taxes and send $500 checks. He still believes it was the right thing to do.
“Yes, definitely. What we saw is that at the level of income, what we did was that we protected the purchasing power of Quebecers,” the Minister of Finance told journalists.
“We must remember where we are starting from: we are starting from a position where Quebecers have the highest tax burden in North America,” he stressed.