Québec’s Budget – March 25, 2021
On March 25, 2021, Finance Minister Éric Girard presented the third budget of François Legault’s government. The deficit is expected to be $12.3 billion at the end of the 2021-2022 fiscal year.
The government plans to return to a balanced budget within seven years, in 2027-2028, rather than in five years as announced last year.
No cuts are planned until Québec returns to full employment at the end of 2022, after the provincial election. No tax increase is planned, and Éric Girard promises not to increase Quebecers’ tax burden for the time being.
According to the Minister of Finance’s assessment, the coronavirus will cost the Québec government approximately $30 billion in lost revenue and overall pandemic-related expenses.
Economic recovery and strengthening the health care system are at the heart of Québec’s plan. Not surprisingly, the budget calls for significant expenditures of $134.9 billion:
- $51.3 billion on health and social services
- $28.2 billion on education and culture
- $18.0 billion on the economy and the environment
- $11.6 billion for individual and family assistance
- $12.1 billion for governance and justice
- $13.7 billion in other expenditures
Québec is planning $2.9 billion for the vaccination campaign, additional personnel, catching up on surgeries and providing home care. Québec also plans to spend $4.5 billion on concrete to stimulate the economy. This amount will be added to the Québec Infrastructure Plan, which now totals a record $135 billion.
The Minister of Finance forecasts that real GDP will grow by 4.2% in 2021.
Here are the main tax measures announced in this budget : click here.